Economics P1 june 2010 Qu 9

[Jane Voon]

In 2008 a disease killed a significant number of sheep used to produce wool.
How would the short-run effect be shown on a demand and supply diagram for wool?

A a movement down the existing supply curve
B a movement up the existing supply curve
C a shift to the left of the supply curve
D a shift to the right of the supply curve

why is ans : c
can i get some explanations pls

 

[MnMz]

In 2008 a disease killed a significant number of sheep used to produce wool.
How would the short-run effect be shown on a demand and supply diagram for wool?

A a movement down the existing supply curve
B a movement up the existing supply curve
C a shift to the left of the supply curve
D a shift to the right of the supply curve

why is ans : c
can i get some explanations pls

A movement is caused by a change is price.

any other factors cause a shift.
in this questi0n, because sheeps are the main source of wool, their death...will cause wool supply to shift to the left or decrease

 

[Jane Voon]

A movement is caused by a change is price.

any other factors cause a shift.
in this questi0n, because sheeps are the main source of wool, their death...will cause wool supply to shift to the left or decrease

Hi thank you so much for the help!!!!!

can you help me for 2 questions in the same year

14. The table shows some of the costs when a firm produces a good.

output total cost to society external cost
$ $
23 316 16

24 322 18

What is the additional cost to a firm of producing the 24th unit?
A $2 B $4 C $6 D $8
ans: B

why???

21. The table shows the balance in $ million for four items in a country’s current account for two
years.

visibles invisibles income transfers

year 1 -72 84 -3 -24
year 2 -87 96 12 -44

What can be concluded about the changes between Year 1 and Year 2?
A Income has moved from a net inflow to a net outflow.
B The difference between the value of exported and imported services has increased.
C The value of exported goods has fallen.
D Transfers into the country have increased.

ans:B why ???