Essay questions on elasticities of demand and supply
Evaluate reasons why the supply of gold is price inelastic.
Data response questions on elasticities of demand and supply
Case study: Container shipping
With reference to Extract B, explain the difference between price inelastic supply and price elastic supply.
Case study: The cocoa market
With reference to Figure 2, explain the term 'price inelastic supply'. Refer to the short-run and the long-run in your answer.
Case study: The cocoa market
With reference to Extract C, examine two effects of the Government of Ghana's decision to end the subsidies paid to cocoa farmers.
Case study: Sources of energy generation
With reference to Extract B, explain whether the supply of nuclear reactors is price elastic or price inelastic.
Case study: The market for rice
With reference to Figure 2, explain whether demand for each of the four selected food groups is price elastic or price inelastic.
Case study: The markets for chicken and 'junk food'
Define the term 'price elasticity of demand'. (Figure 2)
Case study: The markets for chicken and 'junk food'
Between 2020 and 2021 real incomes increased by 6.8% in Beijing. With reference to Figure 2, explain whether chicken is a normal good or an inferior good.
Case study: The markets for chicken and 'junk food'
With reference to Extract B and your own knowledge, discuss the impact of the introduction of an indirect tax on 'junk food'. Illustrate your answer with an appropriate diagram.
Case study: The market for fertiliser
With reference to Extract B, explain whether the supply of phosphate rock is likely to be price elastic or price inelastic.
Case study: New Zealand's housing market and national parks
With reference to Extract B, explain why the supply of new houses is likely to be price inelastic.
Case study: The semiconductor market
With reference to the second paragraph of Extract A, explain the phrase 'the supply of semiconductors is inelastic.'
Case study: The semiconductor market
With reference to Extract C and your own knowledge, discuss the possible microeconomic effects of the subsidies paid to semiconductor manufacturers in the USA. Illustrate your answer with an appropriate diagram.
Case study: The markets for copper, electricity and battery electric buses (BEBs)
With reference to Extract A, examine two likely effects of an increase in the price of copper on plumbing firms that replace water pipes in customers' homes.
Case study: The markets for rubber, tyres (tires) and rubber gloves
With reference to the first paragraph of Extract B, explain what is meant by 'the supply of rubber is price inelastic'.
Case study: The market for sugar
With reference to Extract A, explain one factor that is likely to influence the price elasticity of supply for sugar.
Case study: The global market for palm oil
With reference to Extract A, explain the impact of the availability of substitutes on the price elasticity of demand for palm oil.
Case study: The global market for palm oil
With reference to Figure 2 and Extract A, examine the likely price elasticity of supply for palm oil.
Case study: The markets for vanilla, education and sugar
Define the term 'substitutes' (Extract A, line 8).
Case study: The markets for vanilla, education and sugar
Explain what is meant by the term 'inelastic supply'. Refer to Figure 1 and Extract A in your answer.
Case study: The markets for vanilla, education and sugar
With reference to Extract C, examine two microeconomic effects of Finland's decision to remove the sugar tax.
Case study: The markets for vanilla, education and sugar
Discuss reasons why the 'quantity of education is below the social optimum level' (Extract B, lines 2 and 3). Refer to external benefits in your answer. Illustrate your answer with an appropriate diagram.
Case study: The market for meat
Define the term 'free good' (Extract A, line 7).
Case study: The market for meat
With reference to Figure 1, explain the likely change in quantity demanded of lamb between 2008 and 2016.
Case study: The market for meat
With reference to Extract B, discuss the likely effects of the introduction of an indirect tax on meat. Illustrate your answer with an appropriate diagram.
Case study: The market for cocoa
With reference to Extract A, explain one factor that is likely to influence the price elasticity of supply for cocoa beans.
Short answer questions on elasticities of demand and supply
Ceteris paribus, calculate the price elasticity of supply for green coffee beans. Show your workings.
Ceteris paribus, calculate the income elasticity of demand for bus journeys. Show your workings.
With reference to the table, explain one factor that is likely to influence the price elasticity of demand for energy.
Ceteris paribus, calculate the difference between the percentage change in quantity demanded for flights within developed countries and the percentage change in quantity demanded for flights within developing countries. Show your workings. You may use the last column for your calculations.
Ceteris paribus, calculate the income elasticity of demand for new cars. Show your workings.
Ceteris paribus, calculate the price elasticity of supply for olive oil. Show your workings.
Ceteris paribus, calculate the price elasticity of supply for cocoa. Show your working.
Ceteris paribus, calculate the income elasticity of demand for cinema tickets. Show your working.
Ceteris paribus, calculate the income elasticity of demand for cars between 2011 and 2021. Show your working.
Explain the likely impact of a 5% increase in the price of sugar-sweetened drinks on the market for milk.
Ceteris paribus, calculate the price elasticity of demand for gas from British Gas. Show your workings.
Ceteris paribus, calculate the price elasticity of supply of wheat. Show your workings.
Explain one reason why the price elasticity of demand for residential natural gas is only -0.1.
Ceteris paribus, calculate the price elasticity of demand for sugar. Show your workings.
Explain the likely impact of a 10% increase in the price of fish on the demand for meat in Bangladesh.
Ceteris paribus, calculate the price elasticity of supply for coffee beans. Show your workings.
Ceteris paribus, calculate the price elasticity of demand for the basic subscription for Netflix. Show your workings.
Using the data in the table, ceteris paribus, calculate the income elasticity of demand for new cars in Singapore. Show your workings.
Explain the likely impact of a 10% increase in the price of Coca Cola on the demand for Pepsi cola.
Based on the data in the table, calculate the income elasticity of demand for visits abroad by UK citizens. Show your workings.
Using the data in the table, calculate the income elasticity of demand for visits abroad by Chinese citizens. Show your workings.
Ceteris paribus, calculate the price elasticity of demand for gas and electricity from Centrica. Show your workings.
Multiple choice questions
- AS Unit 1, June 2025, Q6
Ceteris paribus, which one of the following can be deduced from this information?
- AS Unit 1, January 2025, Q6
Ceteris paribus, which one of the following can be deduced from this information?
- AS Unit 1, June 2024, Q4
4 The diagram shows the demand curve for bottled energy drinks. Price per bottle of D energy drink C B Demand
- AS Unit 1, October 2023, Q3
Which one of the following can be deduced from the table?
- AS Unit 1, June 2023, Q2
Which one of the following factors is most likely to cause demand for a product to be price inelastic?
- AS Unit 1, June 2023, Q3
Which one of the following can be deduced from the table?
- AS Unit 1, June 2023, Q6
Which one of the following can be deduced from the table?
- AS Unit 1, January 2023, Q3
Which one of the following can be deduced from the table?
- AS Unit 1, January 2023, Q4
Which one of the following is the price elasticity of supply for boxes of raisins when the demand curve shifts from D to D1?
- AS Unit 1, June 2022, Q4
Which one of the following can be deduced from the diagram?
- AS Unit 1, June 2022, Q6
Which one of the following shows the value of income elasticity of demand?
- AS Unit 1, January 2022, Q3
Which one of the following can be deduced from the table?
- AS Unit 1, October 2021, Q3
Which one of the following can be deduced from the table?
- AS Unit 1, October 2021, Q6
Which one of the following can be deduced from the table?
- AS Unit 1, June 2021, Q6
Which one of the following can be deduced from the data?
- AS Unit 1, January 2021, Q6
Which one of the following can be deduced from the table?
- AS Unit 1, January 2020, Q6
Which one of the following can be deduced from the table?
- AS Unit 1, October 2019, Q5
Which one of the following can be deduced from the table?
- AS Unit 1, October 2019, Q6
Ceteris paribus, the price elasticity of demand for smartphones in this region is equal to
- AS Unit 1, June 2019, Q6
Which one of the following can be deduced from the table?
- AS Unit 1, January 2019, Q5
5 The diagram shows a demand curve for rice. Price of rice per tonne A B C Demand D Quantity of rice per month, tonnes At which point on the demand curve will the price elasticity of demand be unitary?
- AS Unit 1, January 2019, Q6
Which one of the following can be deduced from the table?
