Economics 2281 · O Level · Supply

Supply — practice question

During August 2013, a prolonged strike in north-east India, the region where the best and most costly Darjeeling tea is produced, brought the tea industry to a halt at the time of harvest. On a demand and supply diagram for Darjeeling tea, what is the most probable effect of this situation?

  • AThe price will rise because demand will switch to other teas.
  • BThe price will rise because the strike will cause a movement down the supply curve.
  • CThe price will rise because the supply curve will move to the left.
  • DThe price will rise because there will be a fall in demand for the remaining Darjeeling tea.

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