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 8 - 2015 - Paper 1
Question 8
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... 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 8 - 2015 - Paper 1
Step 1
A
Improved gold mining technology
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Answer
This option would likely not increase the price of gold since improved technology generally makes mining more efficient and lowers costs. Therefore, it could lead to a decrease in gold prices.
Step 2
B
Industrial disputes in gold mines
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Answer
Industrial disputes can disrupt mining operations and reduce the supply of gold. When supply decreases and demand remains the same, the price is likely to increase.
Step 3
C
Increased costs of mining gold
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Answer
If the costs of mining gold increase, producers may pass on these costs to consumers, leading to higher gold prices.
Step 4
D
Decreased levels of tax on gold
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Answer
Lower taxes on gold would generally encourage mining activity and could lead to a surplus in supply, which may decrease prices.
Step 5
E
Falling income of consumers
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Answer
Falling income may lead to a decrease in demand for gold as a luxury item or investment, which could also decrease prices.
