Day: June 18, 2025

Accounting Multiple Choice Question – 18 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 Big Staffie product has experienced a significant rise in factor costs during recent months.

Against this background, it can be expected that there will therefore be?

Select ONE answer:

  1. A contraction in demand and supply
  2. An expansion in demand and supply
  3. A contraction in demand and an expansion in supply
  4. An expansion in demand and a contraction 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 1

  1. Correct == > When factor costs rise, demand contracts (moves along the demand curve) since the price goes up and the supply curve shifts to the left (contracts).
  2. Not correct
  3. Not correct
  4. Not correct

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