The diagram shows a shift in the supply curve for New Zealand's airlines from $$\(S_{1}\)$$ to $$\(S_{2}\)$$. What is the cause of this shift?

A.
a decrease in the costs of New Zealand's airlines
B.
a decrease in the number of people wanting to fly to New Zealand
C.
an increase in the price of train and bus travel in New Zealand
D.
an increase in the tax on air travel in New Zealand
Economics
IGCSE&ALevel
CAIE
Exam No:0455_w21_qp_13 Year:2021 Question No:7

Answer:

A

Knowledge points:

2.4.4 conditions of suppl; The causes of shifts in a supply curve with appropriate terminology, for example increase and decrease in supply.

Solution:

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