Economics Multiple Choice Question – 14 August 2018

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

In 1973 and again in 1979, the Organisation of Petroleum Exporting Countries (OPEC) raised the world price of crude oil and increased their revenue as well. Which of the following is a true statement regarding these OPEC price hikes?

Select ONE answer:

  1. Their revenue would have increased regardless of income elasticity or price elasticity because oil is an imported product for most nations.
  2. Their revenue only increased because oil was already very expensive.
  3. Their revenue increased because the demand for oil was income inelastic.
  4. Their revenue increased because the demand for oil was price inelastic.

Explain what is the equilibrium price and quantity and how they are determined:

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

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

The answer is 4

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