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1.3 Price determination in a competitive market

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Question 33

Due to a long-term shift toward remote and hybrid work patterns, major corporations in a metropolitan area have scaled back their leased spaces, resulting in a significant drop in demand for commercial office space. Simultaneously, local government initiatives have permanently reallocated a substantial portion of commercial office districts to public parks and residential zones, severely restricting the supply of commercial space.

Which one of the following diagrams, A, B, C or D, best illustrates these changes in the metropolitan commercial office space market?

Four supply and demand diagrams showing different shifts in supply and demand curves

Diagram A

Diagram B

Diagram C

Diagram D

1.3 Price determination in a competitive market Questions

  1. A Level
  2. /Economics
  3. /1.3 Price determination in a competitive market