February/March 2026 Paper 12

2026 · 30 questions · 30 parts · 30 marks

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13Specialisation Division LabourMedium1 mark
A car manufacturer has increased the amount of specialisation in its factory. Which diagram shows the impact on the market for the manufacturer’s cars?
four supply and demand diagrams labelled A, B, C and D, each with price on the vertical axis and quantity on the horizontal axis. A: along one supply curve S, demand shifts right from D1 to D2, so price rises from P1 to P2 and quantity from Q1 to Q2. B: along one supply curve S, demand shifts left from D1 to D2, so price falls from P1 to P2 and quantity from Q1 to Q2. C: with one demand curve D, supply shifts left from S1 to S2, so price rises from P1 to P2 and quantity falls from Q1 to Q2. D: with one demand curve D, supply shifts right from S1 to S2, so price falls from P1 to P2 and quantity rises from Q1 to Q2