Economics Multiple Choice Question – 8 November 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Economics

Which of the following is not held constant when a demand curve is drawn?

Select ONE answer:

  1. Consumer expenditure
  2. Consumers’ money incomes
  3. Consumers’ tastes
  4. The price of the good itself
  5. The prices of complementary goods

Explain and justify your answer through sketching and annotating a supply and demand curve diagram?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Economics KS5 classes.

The answer is 4 – This is a very straightforward question if you have a basic grasp of the topic. You are not given a diagram but sketching one for yourself will make the question easy. Sketch a demand curve. If you have done it correctly you have the price of the good up the vertical axis and the quantity demanded along the horizontal axis. The demand curve, then, shows the relationship between the price of the good and quantity demanded, all other things being held equal, or ceteris paribus as we sometimes say. As you lower the price you move along the curve and see the higher quantities now being demanded. The price of the good itself is varying as you do so. All other things affecting demand, including the factors described in 1, 2, 3 and 5 are held constant.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s