Accounting Multiple Choice Question – 7 June 2025

If potatoes are a Giffen good, then an increase in the price of potatoes will cause?

Select ONE answer:

1. An increase in demand for potatoes
2. A decrease in demand for substitutes for potatoes
3. A decrease in demand for potatoes
4. An increase in demand for substitutes for potatoes

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 1

1. Correct == > If potatoes are a Giffen good, then an increase in the price of potatoes will cause an increase in demand for potatoes
2. Not correct
3. Not correct
4. Not correct

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