The role of markets

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Question 46
Easy

The diagram below shows the demand and supply of oat milk. The market is initially in equilibrium at EEE.

Demand and supply diagram of oat milk showing shifts to D1 and S1

What would be the most likely cause of the market equilibrium moving from E E\,E to E1E_1E1​?

An increase in the cost of harvesting oats and positive reports about the nutritional value of oat milk

An increase in the cost of harvesting oats and negative reports about the nutritional value of oat milk

A reduction in the cost of harvesting oats and positive reports about the nutritional value of oat milk

A reduction in the cost of harvesting oats and negative reports about the nutritional value of oat milk

The role of markets Questions

  1. A Level
  2. /Economics
  3. /The role of markets