Economics (AS & A Level) · Oct / Nov 2023 · Paper 11 · Question 12

Which event is most likely to enable firms to respond to an increase in demand by increasing supply rather than by raising price?

1. AFirms reduce their expenditure on the training of workers.
2. BImport duties are increased on machines that increase the speed of production.
3. CThe government introduces buffer stock schemes for the goods produced by the firm.
4. DTrade unions become strong, leading to poor labour productivity.

As printed in the paper