Day: June 16, 2025

Accounting Multiple Choice Question – 16 June 2025

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

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The UK government has recently imposed a maximum price on Big Staffie which is set at a level lower than its equilibrium price.

In future, therefore, it can be expected that there will be?

Select ONE answer:

  1. Excess supply of the product
  2. Excess demand for the product
  3. No effect on supply but an increase in demand
  4. No effect on demand but a decrease in supply

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 2

  1. Not correct
  2. Correct == > A price below the market equilibrium price will attract demand but deter suppliers.
  3. Not correct
  4. Not correct

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