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1.3 Price determination in a competitive market

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Question 17

When the price of a good in a competitive market is set below the equilibrium price, this will lead to:

A

an excess supply, exerting downward pressure on price.

B

excess demand, exerting upward pressure on price.

C

an immediate shift to the right of the supply curve.

D

a permanent shortage that can only be resolved by government intervention.

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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