Cambridge International (CAIE) · 2 The price system and the microeconomy (AS) · 2.4 The interaction of demand and supply

Cambridge International (CAIE) Economics past paper questions: The interaction of demand and supply

Every Cambridge International (CAIE) question on The interaction of demand and supply from 2023 to 2025: 2 essays, 8 data response questions and 10 multiple choice questions. It covers 2.2 Price elasticity, income elasticity and cross elasticity of demand, 4.3 Aggregate demand and aggregate supply analysis, 2.1 Demand and supply curves, 1.1 Scarcity, choice and opportunity cost and 1.4 Resource allocation in different economic systems. Each question links to its paper, mark scheme and examiner report.

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Subtopics2.2 Price elasticity, income elasticity and cross elasticity of demand 34.3 Aggregate demand and aggregate supply analysis 22.1 Demand and supply curves 21.1 Scarcity, choice and opportunity cost 21.4 Resource allocation in different economic systems 14.5 Unemployment 1

Essay questions on the interaction of demand and supply

AS Paper 2, June 2023, Q3(a)OptionalExplain8 marks

With the help of a diagram(s), explain what is meant by equilibrium in a market and consider the extent to which the equilibrium price and equilibrium quantity are likely to change for a product following an increase in the wages for labour across the whole economy.

Question paper p.4 Mark scheme p.13 Examiner report p.11 Open in the tool Draw it: supply and demand diagram

AS Paper 2, March 2023, Q2(a)OptionalExplain8 marks

Explain the functions of price in resource allocation and consider the importance of these functions in relation to the potential effectiveness of a market economy.

Question paper p.4 Mark scheme p.11 Examiner report p.4 Open in the tool

Data response questions on the interaction of demand and supply

AS Paper 2, November 2025, Q1(a)(ii)Calculate1 mark

Case study: How do we make sure cocoa bean farmers get paid a living wage?

Calculate the percentage change in the value of global sales of chocolate between 2017 and 2026, as shown in Table 1.1.

Question paper p.3 Mark scheme p.10 Open in the tool

AS Paper 2, November 2025, Q1(b)Demonstrate2 marks

Case study: How do we make sure cocoa bean farmers get paid a living wage?

With the help of a demand and supply diagram, demonstrate why cocoa bean prices continued to fall in 2023.

Question paper p.3 Mark scheme p.10 Open in the tool Draw it: supply and demand diagram

AS Paper 2, March 2025, Q1(a)Calculate2 marks

Case study: A global olive oil shortage

Using Fig. 1.1, calculate the percentage change in the world price of olive oil between May 2022 and January 2023.

Question paper p.3 Mark scheme p.9 Examiner report p.3 Open in the tool

AS Paper 2, March 2025, Q1(d)Assess6 marks

Case study: A global olive oil shortage

Assess the likely impact of increasing stocks of olive oil on the price and quantity of olive oil traded in the future.

Question paper p.3 Mark scheme p.10 Examiner report p.3 Open in the tool

AS Paper 2, March 2024, Q1(c)Consider4 marks

Case study: Artificial Intelligence

With the help of a demand and supply diagram, consider the impact of additional investment in AI on the price and output of a US carmaker.

Question paper p.3 Mark scheme p.8 Open in the tool Draw it: supply and demand diagram

AS Paper 2, November 2023, Q1(a)Calculate2 marks

Case study: Electric cars create challenges for oil producers

Using the data in Table 1.1, calculate the percentage change in the average real global price of oil between 2014 and 2020.

Question paper p.3 Mark scheme p.7 Examiner report p.10 Open in the tool

AS Paper 2, November 2023, Q1(b)Explain2 marks

Case study: Electric cars create challenges for oil producers

Explain why the price of oil on the world market fell in 2020.

Question paper p.3 Mark scheme p.7 Examiner report p.10 Open in the tool

Case study: Electric cars create challenges for oil producers

With the help of a diagram, explain why the supply problem referred to may lead to increases in the price of electric cars in the future and consider one policy that may be used to overcome this supply problem.

Question paper p.3 Mark scheme p.8 Examiner report p.10 Open in the tool Draw it: supply and demand diagram

Multiple choice questions

AS Paper 1, March 2025, Q10
The quantity demanded of a product is given by QD = 400 – 10P, when P is the price in dollars. Supply of the product is fixed at 100 units. If the price is $20, what will be the position in the market?
AS Paper 1, November 2024, Q11
Good X has a substitute, good Y, and a complement, good Z. The price of good Y decreases and the price of good Z increases. Why might the equilibrium price of good X remain unchanged?
AS Paper 1, June 2024, Q6
Changes in the market for gasoline (petrol) in Zimbabwe resulted in fuel shortages and long queues. Which combination of changes would have been certain to cause this situation?
AS Paper 1, November 2023, Q10
In the diagram, D and S represent the demand for and supply of smartphones. Many components used in the production of smartphones are imported. The initial equilibrium is at point X. The exchange rate has depreciated at the same time as…
AS Paper 1, November 2023, Q12
The equation for the quantity demanded, QD, for a product is where P = price in $. The quantity supplied, QS, is given by QS = 100 + 40P. Which change will occur if the price rises from $5 to $6?
AS Paper 1, June 2023, Q5
Price plays a number of functions in the allocation of resources. Which statement best illustrates the function that relies upon consumer choice (sometimes known as the incentivising function)?
AS Paper 1, June 2023, Q7
There is a worldwide shortage of oil. The diagram shows the consumption and production of oil (billion tonnes) for selected countries. What can be concluded from the diagram?
AS Paper 1, June 2023, Q12
The diagram shows the market for electric cars with X as the initial equilibrium. What will be the new equilibrium when the price of electric car batteries falls and consumers become more environmentally aware?
AS Paper 1, June 2023, Q13
What would cause a market disequilibrium?
AS Paper 1, March 2023, Q25
A company produces goods for export only. Which change could cause a rise in the price of its goods while the quantity sold is unchanged?

Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.

Essay questions on the interaction of demand and supply

Data response questions on the interaction of demand and supply

Multiple choice questions

More Cambridge International (CAIE) topics: 2 The price system and the microeconomy (AS)