Economics 2281 · O Level · Price determination

Price determination — practice question

The diagram illustrates the market for a product. Which of the following statements about the points shown on the diagram is correct?

  • AThe distance from W to X shows a shortage of the product.
  • BThe distance from Z to Y shows a surplus of the product.
  • CThe movement from W to Y shows a fall in the quantity demanded of the product.
  • DThe movement from X to Z shows a fall in the quantity supplied of the product.

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