SHS Economics · Year 1
Price practice questions
The meaning of price and the factors that affect pricing in an economy.
10 questions in this topic: 2 recall, 3 applying skills and concepts and 5 strategic thinking. Every one carries a written explanation.
Sample questions
3 of 10 questions in this topic. Sign up to answer them and see the explanations.
- Question 1Strategic thinking
If demand for a commodity is low while supply is high, what is the likely effect on its market price?
- aThe price is likely to fall
- bThe price is likely to rise sharply
- cThe price will be fixed permanently by the seller
- dThe price will have no relationship to supply or demand
- Question 2Strategic thinking
A smartphone with advanced features is priced much higher than a basic phone that only makes calls and sends texts. This price difference is best explained by
- ausefulness, since the more useful a product is seen to be, the higher its demand and price tend to be
- bscarcity, since advanced smartphones are always harder to find than basic phones
- cdurability, since basic phones always break down faster than smartphones
- dgovernment subsidies given only to smartphone manufacturers
- Question 3Strategic thinking
When choosing between three pairs of shoes within a fixed budget, a buyer compares price, quality, style and brand reputation. This process mainly illustrates
- ahow price interacts with other factors to influence a consumer's final buying decision
- bthe law of supply, since the buyer is acting as a seller
- cderived demand, since shoes are used to produce another good
- djoint supply, since three pairs of shoes are being considered at once
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Start practising freeMore Economics Year 1 topics
- Economic Systems and Macroeconomic Variables
- Introduction to Economics
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- Market and Demand
- Money and Financial Institutions
- Production
- Supply
- Utility