A Level Economics (9708)•9708/13/M/J/25

Explanation
Supply Shift Lowers Equilibrium Price Steps:
- Add 60 kg to original supply quantities: new supply is 290 kg at 35, 170 kg at $30.
- Demand unchanged: 170 kg at 35, 230 kg at $30.
- At 40 surplus.
- At 60 shortage; 35.
Why C is correct:
- Law of supply and demand: rightward supply shift reduces price to clear market; $35 is where supply first exceeds demand, minimizing imbalance.
Why the others are wrong:
- A: 120 surplus (170 demanded vs. 290 supplied), too high.
- B: 35, implying larger surplus.
- D: 60 shortage (230 demanded vs. 170 supplied), too low.
Final answer: C
Topic: The interaction of demand and supply
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