Which two of the following would increase the price of gold?
Select two answers:
A Improved gold mining technology
B Industrial disputes in gold mines
C Increased costs of mining gold
D Decreased levels of tax on gold
E Falling income of consumers - Edexcel - GCSE Business - Question 7 - 2015 - Paper 1
Question 7
Which two of the following would increase the price of gold?
Select two answers:
A Improved gold mining technology
B Industrial disputes in gold mines
C Increase... show full transcript
Worked Solution & Example Answer:Which two of the following would increase the price of gold?
Select two answers:
A Improved gold mining technology
B Industrial disputes in gold mines
C Increased costs of mining gold
D Decreased levels of tax on gold
E Falling income of consumers - Edexcel - GCSE Business - Question 7 - 2015 - Paper 1
Step 1
Industrial disputes in gold mines
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Industrial disputes in gold mines can lead to a reduction in gold production. This decrease in supply, while demand remains constant or increases, will naturally result in a rise in the price of gold.
Step 2
Increased costs of mining gold
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
If the costs of mining gold increase, producers may pass these costs onto consumers. Consequently, this can lead to higher prices for gold as the overall expense of production rises.
