Essay questions on demand, supply and market equilibrium
Evaluate the microeconomic benefits of this increase in demand for electric vehicles. Illustrate your answer with a supply and demand diagram.
Evaluate the microeconomic benefits of introducing a tax on plastic packaging. Illustrate your answer with a supply and demand diagram.
Evaluate the impact of market bubbles in the housing market.
Data response questions on demand, supply and market equilibrium
Case study: Container shipping
With reference to Figure 1 and Extract A, analyse two factors that caused the average world price of transporting goods in shipping containers to rise rapidly. Illustrate your answer with a supply and demand diagram.
Case study: Container shipping
With reference to Extract C and your own knowledge, discuss the likely benefits of subsidies paid to the manufacturers of wind sails. Illustrate your answer with a supply and demand diagram.
Case study: The cocoa market
With reference to Figure 1 and Extract A, analyse one supply factor and one demand factor that caused the price of cocoa to increase by approximately 68% between November 2022 and November 2023. Illustrate your answer with a supply and demand diagram.
Case study: Sources of energy generation
Define the term 'speculation'. (Extract A, line 7)
Case study: Sources of energy generation
With reference to Figure 1 and Extract A, analyse one demand factor and one supply factor that caused the price of uranium to more than double between January 2020 and September 2023. Illustrate your answer with a supply and demand diagram.
Case study: The market for rice
With reference to Figure 1 and Extract A, analyse two reasons why the price of rice increased between July 2022 and July 2023. Illustrate your answer with a supply and demand diagram.
Case study: The markets for chicken and 'junk food'
With reference to Figure 1 and the first paragraph of Extract A, analyse one demand reason and one supply reason why the price of chicken increased by 147% between May 2020 and May 2022. Illustrate your answer with a supply and demand diagram.
Case study: The market for fertiliser
With reference to Figure 1 and Extract A, analyse one demand factor and one supply factor that caused the price of fertiliser to increase between January 2021 and April 2022. Illustrate your answer with a supply and demand diagram.
Case study: Renewables, lithium and smartphones
With reference to Figure 1 and Extract B, analyse two reasons why the 'world price of lithium increased by 191%' (Extract B, line 2). Illustrate your answer with a supply and demand diagram.
Case study: New Zealand's housing market and national parks
With reference to paragraph 1 of Extract A, analyse two reasons why house prices increased between March 2020 and March 2021. Illustrate your answer with a supply and demand diagram.
Case study: New Zealand's housing market and national parks
With reference to Figure 1, Extract A and Extract B, discuss the likely microeconomic effects of a housing market bubble in New Zealand.
Case study: The semiconductor market
With reference to Extract A, analyse two reasons why semiconductor prices 'increased on average by 20%'. Illustrate your answer with a supply and demand diagram.
Case study: The semiconductor market
With reference to Extract B and Figure 1, examine two likely effects of excess demand for semiconductors on car manufacturers.
Case study: The markets for copper, electricity and battery electric buses (BEBs)
With reference to Figure 1 and Extract A, analyse two reasons why 'the world price of copper increased significantly' between May and December 2020. Illustrate your answer with a supply and demand diagram.
Case study: Cotton and clothing
With reference to Figure 1 and Extract A, analyse two reasons why between 1 April 2020 and 1 January 2021 the world price of cotton increased. Illustrate your answer with a supply and demand diagram.
Case study: The markets for rubber, tyres (tires) and rubber gloves
Define the term 'complementary goods' (Extract A, line 8).
Case study: The markets for rubber, tyres (tires) and rubber gloves
With reference to Figure 1 and Extract A, analyse why 'Between January and May 2020 the world price of rubber fell from $1.67 to $1.35 per kg'. Illustrate your answer with a supply and demand diagram.
Case study: The market for sugar
Define the term 'substitutes' (Extract A, line 9).
Case study: The market for sugar
With reference to Figure 1 and Extract A, analyse two reasons why the world price of sugar fell between August 2017 and August 2018. Illustrate your answer with a supply and demand diagram.
Case study: The markets for oil and electric cars
Analyse why the global price of oil fell in the first quarter of 2020. Refer to Figure 1 and Extract A in your answer. Illustrate your answer with a supply and demand diagram.
Case study: The global market for palm oil
Define the term 'equilibrium' (Extract A, line 2).
Case study: The global market for palm oil
With reference to the information provided, analyse two reasons why the price of palm oil decreased in 2018. Illustrate your answer with a supply and demand diagram.
Case study: The markets for vanilla, education and sugar
Analyse why the price of vanilla increased significantly between 2014 and 2018. Refer to Figure 2 and Extract A in your answer. Illustrate your answer with a supply and demand diagram.
Case study: The market for plastics
Analyse one reason why 'the price of plastic waste material fell by more than 40%.' (Extract A, line 2). Illustrate your answer with a supply and demand diagram.
Case study: The market for meat
With reference to Figure 2 and Extract A, analyse one reason why the price of lamb increased during 2017. Illustrate your answer with a supply and demand diagram.
Case study: The market for cocoa
Define the term 'substitutes' (Extract A, line 12).
Case study: The market for cocoa
With reference to Figure 1 and Extract A, analyse one reason why the price of cocoa beans 'fell below $2 000 per tonne' (Extract A, line 8) in April 2017. Illustrate your answer with a supply and demand diagram.
Case study: The market for cocoa
With reference to Extract C, discuss the likely effects of the reduction in the minimum (guaranteed) price for cocoa. Illustrate your answer with an appropriate diagram.
Short answer questions on demand, supply and market equilibrium
With reference to the information given, explain the difference between substitutes and complements.
Explain one reason why there might have been a housing market bubble in Australia in 2021.
Ceteris paribus, explain the likely impact on excess supply of this increase in the minimum price. Illustrate your answer with a supply and demand diagram.
Draw a diagram to illustrate the likely impact of this change in consumers' real incomes on the equilibrium price and quantity for domestic holidays in Laos.
Draw a diagram to illustrate the likely impact of this increase in real incomes on the equilibrium price and quantity of margarine.
With reference to Munich's housing market, explain what is meant by a 'market bubble'.
Draw a diagram to illustrate the impact of the introduction of a subsidy on the market for solar panels. Show the new equilibrium price and quantity and the area of government expenditure on the subsidy in your diagram.
Draw a diagram to illustrate the impact of the introduction of the indirect tax on the equilibrium price and quantity of energy drinks in the UAE.
With reference to the Hong Kong housing market, explain what is meant by a 'market bubble'.
Draw a diagram to illustrate the impact of the removal of the subsidy on the equilibrium price and quantity of petrol.
Draw a diagram to illustrate the impact of the introduction of the indirect tax on the equilibrium price and quantity of petrol in Saudi Arabia.
Using the data in the table, calculate the equilibrium price for bottled water after the advertising campaign. Show your workings. You may wish to use the last column in your calculation.
Multiple choice questions
- AS Unit 1, June 2025, Q1
1 Which one of the following is an example of a market failure?
- AS Unit 1, June 2025, Q2
Ceteris paribus, which one of the following is the most likely result of increasing the maximum price of flights within Thailand?
- AS Unit 1, January 2025, Q2
Which one of the following is most likely to result from the introduction of a minimum guaranteed price for milk above the equilibrium price?
- AS Unit 1, October 2024, Q6
Which one of the following can be deduced from this information?
- AS Unit 1, June 2024, Q3
Which one of the following can be deduced from this information?
- AS Unit 1, January 2024, Q3
Which one of the following can be deduced from this information?
- AS Unit 1, October 2023, Q1
1 Which one of the following is an example of government failure?
- AS Unit 1, October 2023, Q4
Which one of the following can be deduced from this diagram?
- AS Unit 1, October 2023, Q5
Which one of the following concepts best describes the behaviour of staff at these banks?
- AS Unit 1, October 2023, Q6
Which one of the following can be deduced from the diagram about the relationship between PlayStation 5 games consoles and Xbox Series X games consoles?
- AS Unit 1, October 2022, Q1
1 Which one of the following statements is a consequence of diminishing marginal utility?
- AS Unit 1, October 2022, Q3
Which one of the following can be deduced from this information?
- AS Unit 1, June 2022, Q3
Which one of the following can be deduced from the table?
- AS Unit 1, January 2022, Q1
1 Which one of the following is a function of the price mechanism?
- AS Unit 1, January 2022, Q4
4 The diagram shows the market for vaccinations against measles. Costs and G benefits per MPC=MSC vaccination
- AS Unit 1, October 2021, Q4
Which one of the following can be deduced from the diagram?
- AS Unit 1, October 2021, Q5
Which one of the following can be deduced from the diagram?
- AS Unit 1, June 2021, Q4
Which one of the following can be deduced from the diagram?
- AS Unit 1, January 2021, Q1
1 Which one of the following is an example of government failure?
- AS Unit 1, January 2021, Q5
Which one of the following can be deduced from the diagram following the imposition of the minimum price?
- AS Unit 1, January 2020, Q1
1 Which one of the following will cause a movement along the demand curve in the market for rice?
- AS Unit 1, January 2020, Q4
Which one of the following can be deduced from the diagram?
- AS Unit 1, October 2019, Q3
3 Which one of the following is a function of money?
- AS Unit 1, June 2019, Q4
Which one of the following can be deduced from the diagram?
- AS Unit 1, June 2019, Q5
5 The diagram shows the relationship between the price of Xbox games consoles and the quantity demanded of PlayStation 4 games consoles. Price per Xbox games console D 0 Quantity demanded of PlayStation 4 games consoles It can be deduced…
