Day: November 7, 2022

During a certain period, 10,000 units of a normal good are sold at a price of 20p.
During a later period, 12,000 units are sold at a price of 22p.
What could explain this change?

Select ONE answer:

1. a reduction in consumers’ incomes
2. an increase in the cost of raw materials
3. an increase in the price of a substitute commodity
4. an increase in the productivity of factors of production

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 3

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

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