Day: April 2, 2022

The demand for a good falls at the same time as its costs of production decrease.

What will be the combined effect of these changes on the price and on the quantity supplied of the good?

Select ONE answer:

1. price quantity – decrease & supplied – decrease
2. price quantity – decrease & supplied – uncertain
3. price quantity – uncertain & supplied – decrease
4. price quantity – uncertain & supplied – uncertain

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 2

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

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