Economics Multiple Choice Question – 5 May 2021

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

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A government gives a subsidy to a producer of a product.

What will be the likely effect of this?

Select ONE answer:

  1. a shift to the left in the demand curve and a rise in equilibrium quantity
  2. a shift to the left in the supply curve and a rise in equilibrium quantity
  3. a shift to the right in the demand curve and a fall in equilibrium price
  4. a shift to the right in the supply curve and a fall in equilibrium price

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

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

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