A Level Economics AQA Practice Exam

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Prepare for the A Level Economics AQA Exam with our interactive quiz. Test your knowledge with multiple choice questions and detailed explanations. Equip yourself with the tools needed for success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What factor can lead to increased demand for lithium?

Decrease in mobile phone users
Rise in demand for mobile phones
Fall in battery prices
Reduction in substitute goods

The correct answer is: Rise in demand for mobile phones

The correct choice reflects the relationship between consumer demand for mobile phones and the demand for lithium. Lithium is a key component in batteries, particularly for mobile phones and other electronic devices. When there is a rise in demand for mobile phones, manufacturers require more lithium to produce the batteries that power these devices. This creates an increased demand for lithium in tandem with the higher demand for mobile phones. In this context, the rise in demand for mobile phones leads to a greater requirement for lithium, directly impacting its market demand. Understanding this relationship highlights the interconnectedness of consumer electronics and the raw materials used to produce them. This scenario showcases how changes in consumer behavior in one market can significantly influence demand in related industries, such as that of lithium.