May/June 2026 Paper 13

2026 · 30 questions · 30 parts · 30 marks

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5Market Equilibrium Price MechanismMedium1 mark
The diagram shows a change in market conditions for a product. The equilibrium was initially at point X.
market diagram for a product, price on the vertical axis and quantity on the horizontal axis, with an upward-sloping supply curve S and two parallel downward-sloping demand curves; X, where S meets D1, is the original equilibrium at price P1 and quantity Q1, and D2, to the right of D1, meets S at a higher price P2 and quantity Q2, marked by dashed lines
What can be concluded from this?