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O-LevelEconomicsThe allocation of resources2281/13 · Oct/Nov 2023 · Q131 Mark

Many small energy providers have closed down due to rising costs. What is the likely effect of this on the price of energy and choice of energy providers for consumers, assuming there is no government intervention?

Aprice of energy: decreases, choice of energy providers: decreases
Bprice of energy: decreases, choice of energy providers: increases
Cprice of energy: increases, choice of energy providers: decreases
Dprice of energy: increases, choice of energy providers: increases

✓ Correct answer

C: price of energy: increases, choice of energy providers: decreases

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About this question

Topic
The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, Oct/Nov 2023 Paper 1 Variant 3, question 13.

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