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1.3 Price determination in a competitive market

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Question 122

Ceteris paribus, a standard market supply curve slopes upwards from left to right because:

A

higher prices increase the potential profitability of production, incentivising firms to expand output.

B

lower prices encourage new firms to enter the market.

C

higher prices lead to a fall in the marginal costs of production.

D

lower prices cause an expansion in market demand.

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.

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