A Level Economics (9708)•9708/12/M/J/20

Explanation
Equilibrium requires balancing supply and demand, but change unspecified
Steps:
- Set Q_s = Q_d for initial equilibrium: P - 30 = 20P + 30 yields inconsistent negative price, suggesting equation error (likely Q_d = 50 - P).
- Assuming corrected Q_d = 50 - P, solve P - 30 = 50 - P → 2P = 80 → P = 40.
- No change described (e.g., shift in curve or tax), so impact on price cannot be calculated.
- Not enough information to determine price effect.
Why C is correct:
- Cannot confirm; lacks details on change per supply-demand equilibrium law.
Why the others are wrong:
- A: No basis for $6 fall without specified demand increase or supply decrease.
- B: No basis for $2 fall.
- D: No basis for $6 rise.
Not enough information.
Final answer: Not enough information.
Topic: The interaction of demand and supply
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