Business Studies Multiple Choice Question – 19 January 2022

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

Business Studies
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In April 2021, due to heavy rainfall and poor weather, the UK Turnip Council warned that the supply of turnips was down by 50%.

The most likely result of this was …. ?

Select ONE answer:

  1. a decrease in the price of turnips
  2. a shift in the supply curve of turnips to the right
  3. a shift in the supply curve of turnips to the left
  4. a movement along the supply curve for turnips

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct – because decrease in the price of turnips would only happen if there had been an increase in supply
  2. Not correct – because shift in the supply curve of turnips to the right implies that there has been an increase in the supply of turnips due factors such as good weather, improvements in agricultural technology
  3. Correct – supply is the amount of goods and/or services a firm is able and willing to produce/provide at a given price and at a given time. Because the bad weather had damaged the crops and therefore turnips became scarce. The supply curve will shift left because the number of turnips available will be reduced no matter what price people pay.
  4. Not correct – because movement along the supply curve for turnips would have only happened if there had been a change in the price of turnips rather than a non-price factor such as the weather

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Author: stuart001uk2014

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

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