Paper 2 · demand

The diagram shows the market demand for red meat. The movement from $D_1$ to $D_2$ 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: An increase in income tax reduces disposable income, reducing demand for red meat — shifting demand curve to the left from D1 to D2.

ZIMSEC Economics Paper 2, November 2010, Q5

Get the full paper, not just one question

Danho has every sitting for this paper, with your progress tracked question by question, offline.