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
Select two answers: A Improved gold mining technology
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Answer
Improved gold mining technology typically leads to increased efficiency in mining operations. This can result in lower costs of extraction, potentially increasing the overall supply of gold in the market. However, in terms of price, if the technology does not significantly enhance production or is not widely adopted, it may not have a direct impact on price.
Step 2
Select two answers: B Industrial disputes in gold mines
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Answer
Industrial disputes in gold mines can disrupt production and lead to decreased supply. A reduction in supply, while demand remains constant, would typically lead to an increase in the price of gold. Therefore, this option would likely increase the price of gold.