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O Levels Economics (2281)•2281/12/M/J/25
Question 7 from 2281/12/M/J/25

Explanation

Demand-Supply Imbalance in Ice Cream Market Steps:

  • Hot weather typically shifts the demand curve for ice cream to the right, increasing quantity demanded at every price.
  • The price P is likely the original equilibrium price before the hot weather.
  • At this fixed price P, the new quantity demanded exceeds the quantity supplied.
  • This creates an excess demand situation in the market.

Not enough information to confirm surplus; standard economics predicts a shortage, but context (e.g., graph or supply shift) is missing.

Final answer: Not enough information.

Topic: Demand

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