Skip to content

Course home

Sign up

1.3 Price determination in a competitive market

EasyMediumHard
12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849505152535455565758596061626364656667686970717273747576777879808182838485868788899091
Question 54

Which one of the following situations would lead to a decrease in equilibrium price?

A

Demand is perfectly elastic and the government introduces a subsidy for producers

B

Demand is perfectly inelastic and the government introduces a subsidy for producers

C

Supply is perfectly inelastic and the price of a complement good falls

D

Supply is perfectly elastic and consumer incomes rise (assuming a normal good)

Markscheme

1.3 Price determination in a competitive market Questions

  1. A Level
  2. /Economics
  3. /1.3 Price determination in a competitive market

256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.

Question bank