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    PracticeAQA GCSEAQA GCSE Economics Paper 1Question 02
    Medium1 markMultiple Choice
    How markets workGeneralSupply and DemandSupply

    AQA GCSE · Question 02 · How markets work

    Which of the following could lead to a reduction in the quantity supplied of a product?

    Answer options:

    A.

    A decrease in demand for the product

    B.

    A decrease in the cost of making the product

    C.

    An increase in the popularity of the product

    D.

    An increase in the price of the product

    How to approach this question

    Distinguish between a change in 'supply' (a shift of the curve) and a change in 'quantity supplied' (a movement along the curve). A change in quantity supplied is caused by a change in the product's own price. Consider which of the options would cause the price to fall, thus leading to a reduction in quantity supplied.

    Full Answer

    A.A decrease in demand for the product✓ Correct
    A change in 'quantity supplied' refers to a movement along a fixed supply curve and is caused solely by a change in the price of the good itself. A 'change in supply' is a shift of the entire curve, caused by factors other than price (like production costs). A decrease in demand lowers the market price. In response to this lower price, suppliers will reduce the amount they offer for sale, which is a reduction in the quantity supplied.

    Common mistakes

    Confusing a change in 'quantity supplied' with a change in 'supply'. A decrease in the cost of making the product would cause an increase in supply, but the question asks about quantity supplied.
    Question 01All questionsQuestion 03

    Practice the full AQA GCSE Economics Paper 1

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