Economics Multiple Choice Question – 9 December 2018

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

In the short run, an increase in demand for a product that is sold in a perfectly competitive market will ……. ?

Select ONE answer:

  1. cause more firms to shut down.
  2. increase the number of firms in the market.
  3. increase the profits of existing firms in the market.
  4. have no effect on the price.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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