Paper 1 · demand
The diagram shows the market demand for red meat. The movement from to can be the result of
Aan increase in income taxation.
Ba decrease in the price of red meat.
Can increase in the price of chicken meat.
Da decrease in the price of cheese sauce, a complement.
Explanation: The shift from D1 to D2 is a leftward/downward shift indicating a decrease in demand. An increase in income taxation reduces disposable income and therefore demand for normal goods like red meat.
ZIMSEC Economics Paper 1, November 2010, Q5
