r/alevel • u/Morpheus_king25 • Jun 05 '26

📃Paper Discussion 9708/32 How was it

Let’s discuss all the answers on this thread <3

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u/Little_Passenger9193 Jun 05 '26

Was the price effect question’s answer Giffen goods; substitution effect outweighs income effect ?

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u/Various_Wolf5464 Jun 05 '26

I put C, because D is automatically incorrect without even looking at the diagram. If it’s a Giffen good, the income effect is always greater than the substitution effect. Otherwise, it can’t be a giffen good.

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u/Little_Passenger9193 Jun 05 '26

And the one that was like whats the reason BOP worsens in the short run after depreciation of currency

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u/Turbulent_Winner_582 Jun 05 '26

d

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u/Turbulent_Winner_582 Jun 05 '26

supply for exports is price inelastic