Edexcel IGCSE Economics 1.1.2.a consumer and producer assumptions

Edexcel IGCSE Economics syllabusEconomics 4EC1First assessment 2019

Practise assumption questions by identifying consumer or producer aims and defining producers as suppliers of goods or services.

How this is tested

Identify whether a scenario shows consumers maximising benefits or firms maximising profit.
Define a producer as an agent that makes or supplies goods and services.

[Maximum number: 1]

When a firm increased its prices, many consumers stopped buying its products.

Which one of the following explains the behaviour of these consumers?

Consumers aim to maximise profit

Consumers aim to maximise benefits

Consumers have habits that are hard to give up

Consumers cannot calculate their benefits