Eduqas · Microeconomics · Demand, supply and elasticity

Eduqas Economics past paper questions: Demand, supply and elasticity

Every Eduqas question on Demand, supply and elasticity from 2016 to 2025: 5 essays, 24 data response questions, 10 short answer questions and 33 multiple choice questions. It covers Costs, revenues and profit, Government intervention in markets, Growth and development, The labour market and Measuring economic performance. Each question links to its paper, mark scheme and examiner report.

Filter these in the tool

SubtopicsCosts, revenues and profit 8Government intervention in markets 5Growth and development 3The labour market 2Measuring economic performance 2Aggregate demand 1Aggregate supply 1Economic growth and the economic cycle 1Market structures 1Macroeconomic objectives and policy 1The economic problem and resource allocation 1

Essay questions on demand, supply and elasticity

A-level Component 3, June 2024, Q3.2OptionalEvaluate20 marks

Evaluate the view that an economy will automatically adjust to reach equilibrium at full employment (the NAIRU).

Question paper p.3 Mark scheme p.15 Examiner report p.14 Open in the tool Practise the AD/AS diagram Practise the Phillips curve diagram

A-level Component 3, June 2023, Q1(a)Optional10 marks

Case study: Government considers higher tax on cut-price alcohol

Using diagrams, explain how different values of price elasticity of demand (PED) might affect the incidence of an indirect tax on different products.

Question paper p.2 Mark scheme p.4 Examiner report p.13 Open in the tool Draw it: indirect tax diagram Or: PED and PES diagram

A-level Component 3, October 2020, Q2(a)OptionalExplain10 marks

Case study: DEBENHAMS WARNS ON PROFITS, AFTER PRICE CUT FAILS TO ATTRACT MORE

Explain, with the aid of a diagram, why price elasticity of demand changes along a downward sloping straight-line demand curve.

Question paper p.2 Mark scheme p.9 Examiner report p.8 Open in the tool Draw it: PED and revenue diagram Or: PED and PES diagram

A-level Component 3, October 2020, Q2(b)OptionalEvaluate20 marks

Case study: DEBENHAMS WARNS ON PROFITS, AFTER PRICE CUT FAILS TO ATTRACT MORE

Evaluate the extent to which knowledge of price elasticity of demand is important for decision making by firms and governments. Use diagrams to illustrate your answer.

Question paper p.2 Mark scheme p.11 Examiner report p.8 Open in the tool Draw it: PED and PES diagram Or: PED and revenue diagram

A-level Component 3, June 2018, Q1(a)OptionalExplain10 marks

Case study: CHANGES IN PRICE AND DEMAND AFFECT MARKETS IN DIFFERENT WAYS

Explain why demand curves slope downwards from left to right and supply curves slope upwards from left to right.

Question paper p.2 Mark scheme p.3 Examiner report p.9 Open in the tool

Data response questions on demand, supply and elasticity

AS Component 2, June 2025, Q2(a)10 marks

Case study: History to be repeated?

(i) Using a PPF diagram, outline how large declines in industrial production led to mass unemployment during the Great Depression (line 2). (ii) Assess the possible impact of mass unemployment on the demand for goods with an income elasticity of demand of +2.

Question paper p.5 Mark scheme p.15 Open in the tool Draw it: PPF diagram Or: YED and XED diagram

A-level Component 1, June 2024, Q234 marks

Use the data to explain where the Nash equilibrium is in this matrix.

Question paper p.23 Mark scheme p.8 Examiner report p.7 Open in the tool

AS Component 1, June 2024, Q2(a)5 marks

Using the data in column 3 of Table 1, outline the differences between the types of products sold by the shop using income elasticity of demand.

Question paper p.4 Mark scheme p.5 Examiner report p.6 Open in the tool

AS Component 1, June 2024, Q2(b)6 marks

Using Table 1 and Figure 1, consider whether the change in Australian Real GDP between 2021 and 2023 will be harmful for the total revenue of the shop.

Question paper p.5 Mark scheme p.7 Examiner report p.7 Open in the tool

AS Component 2, June 2024, Q1(b)Discuss6 marks

Case study: Cross-railing

Discuss the likely cross elasticity of demand between the car parks at Crossrail's Elizabeth Line stations and the number of tickets sold for Crossrail.

Question paper p.3 Mark scheme p.6 Examiner report p.9 Open in the tool

A-level Component 1, June 2023, Q227 marks

To what extent can these trends be explained by cross price elasticity of demand?

Question paper p.24 Mark scheme p.8 Examiner report p.7 Open in the tool

AS Component 1, June 2023, Q5(a)6 marks

Using the diagram below, calculate the change in consumer surplus resulting from these two actions.

Question paper p.12 Mark scheme p.16 Examiner report p.8 Open in the tool Draw it: supply and demand diagram

AS Component 1, June 2022, Q1(c)6 marks

Using the data, discuss whether opting out of 'auto-enrolment' by employees is a rational decision.

Question paper p.3 Mark scheme p.5 Examiner report p.3 Open in the tool

AS Component 1, June 2022, Q6(a)3 marks

Sugar prices fell by 18% between November 2018 and January 2019. Calculate the percentage change in the short run supply of sugar.

Question paper p.14 Mark scheme p.22 Examiner report p.6 Open in the tool

AS Component 1, June 2022, Q6(b)Explain6 marks

Explain possible reasons for the differences between the short run and long run price elasticities of supply for sugar and copper.

Question paper p.14 Mark scheme p.23 Examiner report p.6 Open in the tool

AS Component 2, June 2022, Q2(d)8 marks

Case study: A PLASTIC WORLD

(i) Using the data, calculate the percentage change in plastic bag usage between 2014 and 2019. (ii) Using the data and your answer to (d)(i), discuss the nature and strength of the relationship between shopping and the demand for plastic bags.

Question paper p.6 Mark scheme p.23 Examiner report p.9 Open in the tool

A-level Component 1, October 2021, Q233 marks

Saint Emillion is a small town in the wine growing area of Bordeaux in France. The harvest of grapes is used to make wine and is affected significantly by the weather. Once produced, the wine is put into barrels for 18 months until it is finally put into bottles. With the aid of a diagram, comment on the likely price elasticity of supply of Saint Emillion wine.

Question paper p.21 Mark scheme p.9 Open in the tool Draw it: PED and PES diagram

A-level Component 1, October 2020, Q258 marks

Using calculations, discuss whether a cut in price to £9 would be beneficial for the firm.

Question paper p.26 Mark scheme p.14 Examiner report p.4 Open in the tool

AS Component 1, June 2019, Q1(c)Explain2 marks

With reference to the concept of income elasticity of demand, explain one possible reason for the change in the pattern of output shown in Chart 1.

Question paper p.3 Mark scheme p.4 Examiner report p.3 Open in the tool

AS Component 1, June 2019, Q4(a)6 marks

(i) Outline what is meant by a price elasticity of demand figure of –0.4. (ii) Calculate the impact on the expenditure on home care services of the median disabled elderly household in France as a result of an increase in hourly prices to €27 per hour.

Question paper p.6 Mark scheme p.7 Examiner report p.4 Open in the tool

AS Component 1, June 2019, Q4(b)Discuss8 marks

Discuss how useful this elasticity data might be to a private sector firm providing home care services in France.

Question paper p.7 Mark scheme p.8 Examiner report p.4 Open in the tool

AS Component 2, June 2019, Q2(a)7 marks

Case study: OLIVE OIL ON THE UP OLIVE OIL PRICES GO UP, AND UP, AND UP

(i) Calculate the percentage change in the demand for olive oil in the UK between 1990 and 2015. (ii) With reference to the data and using a demand and supply diagram, outline why the price of olive oil has been rising in recent years.

Question paper p.7 Mark scheme p.11 Examiner report p.8 Open in the tool Draw it: supply and demand diagram

AS Component 2, June 2019, Q2(c)10 marks

Case study: OLIVE OIL ON THE UP OLIVE OIL PRICES GO UP, AND UP, AND UP

(i) Outline what is meant by inelastic price elasticity of supply. (ii) Using the data, discuss whether the price elasticity of supply of olive oil is likely to be more elastic in the long run than the short run.

Question paper p.7 Mark scheme p.13 Examiner report p.8 Open in the tool Practise the PED and PES diagram

AS Component 1, June 2018, Q3(a)Define2 marks

Define consumer surplus.

Question paper p.6 Mark scheme p.8 Examiner report p.4 Open in the tool

AS Component 1, June 2018, Q3(b)2 marks

Using the diagram above, calculate the consumer surplus for television licence holders in the UK when the licence fee is set at £145.50. Show your workings.

Question paper p.6 Mark scheme p.8 Examiner report p.4 Open in the tool Draw it: supply and demand diagram

AS Component 2, June 2018, Q2(b)4 marks

Case study: HIGHER OIL PRICE AND WEAKER POUND START TO PUSH UP INFLATION

Why might a business's ability to "absorb rising costs or pass them on to consumers" (line 9) depend upon the price elasticity of demand for its product?

Question paper p.5 Mark scheme p.13 Open in the tool

AS Component 1, June 2017, Q4(a)Calculate5 marks

Calculate the amount spent on almonds each year by the average American following the price rise.

Question paper p.7 Mark scheme p.11 Examiner report p.4 Open in the tool

AS Component 1, June 2017, Q4(b)Calculate3 marks

Calculate the likely impact of the price rise on Californian almond production.

Question paper p.7 Mark scheme p.11 Examiner report p.4 Open in the tool

AS Component 2, June 2016, Q2(d)6 marks

Case study: WAR ON SMOKERS CONTINUES

With the aid of the data discuss the view that the price elasticity of supply of tobacco is inelastic.

Question paper p.5 Mark scheme p.15 Examiner report p.8 Open in the tool

Short answer questions on demand, supply and elasticity

A-level Component 1, June 2025, Q23Explain4 marks

Explain why the total revenue curve for the firm is shaped as shown in the diagram.

Question paper p.19 Mark scheme p.13 Examiner report p.7 Open in the tool Draw it: PED and revenue diagram

AS Component 1, June 2024, Q16 marks

Using calculations in your answer, outline how price elasticity of demand changes along this demand curve.

Question paper p.3 Mark scheme p.4 Examiner report p.6 Open in the tool

AS Component 1, October 2020, Q6Calculate4 marks

Calculate (i) The tax revenue generated for the government. (ii) The increase in domestic producer surplus.

Question paper p.10 Mark scheme p.13 Examiner report p.4 Open in the tool

AS Component 1, June 2018, Q1(a)3 marks

Outline what a price elasticity of demand of –0.47 means.

Question paper p.2 Mark scheme p.3 Examiner report p.4 Open in the tool

AS Component 1, June 2018, Q1(b)Explain4 marks

Explain why price elasticity of demand for tobacco products might be at this level.

Question paper p.2 Mark scheme p.3 Examiner report p.4 Open in the tool

Suppose average incomes in Egypt rise by 5% and the price of cigarettes rises by 10%. Calculate the probable impact on the sales of tobacco products in Egypt.

Question paper p.3 Mark scheme p.4 Examiner report p.4 Open in the tool

A-level Component 1, June 2017, Q21Explain4 marks

Explain, using a demand and supply diagram, why in theory a rise in demand for music downloads will have no effect on their equilibrium price.

Question paper p.14 Mark scheme p.4 Examiner report p.4 Open in the tool Draw it: supply and demand diagram Or: PED and PES diagram

A-level Component 1, June 2017, Q22Calculate2 marks

Suppose a firm is initially selling 500 units of good X at a price of £3 per unit. Cross price elasticity of demand between good X and good Y is +1.5. If the price of good Y falls from £20 to £16, calculate the expected new level of revenue that the firm will receive from the sales of X after the price of Y is cut, assuming that the price of X remains the same.

Question paper p.14 Mark scheme p.5 Examiner report p.4 Open in the tool

AS Component 1, June 2016, Q1(a)Explain2 marks

Explain what is meant in economic theory by inelastic cross price elasticity of demand.

Question paper p.2 Mark scheme p.3 Examiner report p.4 Open in the tool

AS Component 1, June 2016, Q1(b)4 marks

The price of beer in London currently (Sept 2014) averages £3.80 per pint. If the price of beer in London pubs was to increase from £3.80 to £3.99 per pint, calculate the expected change in the demand for spirits in London pubs.

Question paper p.2 Mark scheme p.3 Examiner report p.4 Open in the tool

Multiple choice questions

A-level Component 1, June 2025, Q7
The table below gives information on two products, X and Y. Product X: selling price £20, demand 1000 per week. Product Y: selling price £15, demand 1500 per week. The cross price elasticity of demand for Y with product X is -1.5. If the…
A-level Component 1, June 2025, Q9
Factors which will affect the elasticity of demand for labour include all the following except:
A-level Component 1, June 2025, Q18
The grid below shows the expected profits for two firms considering starting advertising campaigns (Firm X first). Both advertise: £50m, £70m. X advertises and Y does not: £30m, £30m. X does not advertise and Y does: £60m, £40m. Neither…
A-level Component 1, June 2024, Q3
The table below contains estimates of price elasticity of demand and income elasticity of demand for cigarettes in Greece. Price elasticity of demand (PED) −0.44 Income elasticity of demand (YED) +1.04 Which of the following is true for…
A-level Component 1, June 2024, Q5
A rational individual will consume a product which has a zero price up to the point at which:
A-level Component 1, June 2024, Q11
A firm produces 3 products, X, Y and Z. The firm cuts the price of X from £20 to £16. At £20, annual demand is 150 million for X, 250 million for Y and 80 million for Z. At £16, it is 165 million for X, 300 million for Y and 60 million for…
A-level Component 1, June 2024, Q19
The diagrams in the question paper show different demand curves for different firms (A-E). Which firm would gain higher revenue from a small increase in price? (Options A to E are diagrams: see the question paper.)
A-level Component 1, June 2024, Q20
The diagram below shows the effect on the market for a product following the imposition of a maximum price of £20. The values of consumer surplus and producer surplus if price is at £20 are: (The diagram is in the question paper.)
A-level Component 1, June 2023, Q2
The diagram in the question paper shows the supply curve for a product. The supply curve shown would be most likely to apply to which one of the following?
A-level Component 1, June 2023, Q6
The diagram below shows the markets for two products, X and Y. The supply of product X has shifted from S1 to S2. As a result, there has been a shift in demand for product Y from D1 to D2. Which one of the following combinations is true?…
A-level Component 1, June 2023, Q16
The diagram below shows a firm's total cost (TC) and total revenue curves before and after a shift in total revenue from TR1 to TR2. The shift in total revenue from TR1 to TR2 shown in the diagram is best explained by a: (The diagram is in…
A-level Component 1, June 2022, Q4
Suppose that a firm's research has shown that its total revenue increases if any one of the following occurs: (i) It increases its prices (ii) The economy enters a recession (iii) A related firm cuts its prices It can be concluded that for…
A-level Component 1, June 2022, Q19
The price elasticity of demand for a product is unity (–1). Which of the following will increase as a result of an increase in the supply of the product?
A-level Component 1, June 2022, Q20
The payoff matrix below shows two firms' expected revenues from different pricing decisions (Firm A first). Firm A £10 and Firm B £20: £500, £2000. Firm A £10 and Firm B £25: £750, £1750. Firm A £9 and Firm B £20: £450, £1800. Firm A £9…
A-level Component 1, October 2021, Q4
In 2019 global coal production rose as a result of new mines opening in India, Indonesia and Russia. The effect of this was to drive down the price and increase the quantity demanded. Which of the following supply and demand diagrams for…
A-level Component 1, October 2021, Q8
The diagram below shows the supply and demand for an agricultural commodity, with the market initially in equilibrium at a price of £50 per tonne. The supply curve meets the price axis at £10 and the demand curve at £100; quantities marked…
A-level Component 1, October 2021, Q13
Research in the US suggests the following price elasticities of demand (PED) and cross-price elasticities of demand (XED) for cereals and for fruit and vegetables: PED for fruit and vegetables –0.79 PED for cereals –0.58 XED for fruit and…
A-level Component 1, October 2021, Q20
The table below shows the demand and supply for a commodity (million kg per week). Price £50: demand 0, supply 75. £45: 10, 70. £40: 20, 65. £35: 30, 60. £30: 40, 55. £25: 50, 50. £20: 60, 45. £15: 70, 40. If the government was to impose a…
A-level Component 1, October 2020, Q10
Study the table on elasticities below. Good X: PED -0.7, XED between X and Y +1.1, YED -0.3. Good Y: PED -0.9, XED between X and Y +1.1, YED +0.5. It can be concluded that:
A-level Component 1, October 2020, Q16
Firms X and Y compete in the same market. Currently Firm X is seen as having both higher quality and being better value for money than Firm Y. Each firm is considering possible future strategies: to cut price to improve value for money or…
A-level Component 1, October 2020, Q17
Cross-price elasticity of demand between good G and good H is negative. Assuming that the market for good H is initially in equilibrium at point X, which point would show the new equilibrium in the market for good H following a cut in VAT…
A-level Component 1, June 2019, Q2
It has been estimated that the price elasticity of supply for cotton in India is +0.3. Between April 2016 and April 2017, the global price of cotton increased from $1.50 per kg to $1.95 per kg. The likely impact on the supply of cotton…
A-level Component 1, June 2019, Q15
In a market there are two main competitors, Firm X and Firm Y. Firm X is considering the launch of a new product into the market whilst Firm Y is considering a change in the price of its existing products. The matrix below shows their…
A-level Component 1, June 2018, Q2
Evidence from the US suggests that price elasticity of demand for rib-eye steak is about –2.1. Suppose that price is currently $22 per kg and that sales are 2000kg per week. A price reduction to $19.80 per kg would mean that the new…
A-level Component 1, June 2018, Q4
The cost to the government of introducing a guaranteed minimum price for an agricultural product above the free market equilibrium will be greatest if:
A-level Component 1, June 2018, Q20
If an individual's weekly income rises from £500 to £540 and as a result their weekly spending on cakes increases from £10 to £12 then (other things being equal) their income elasticity of demand for cakes is:
A-level Component 1, June 2017, Q3
A firm reduces the price of a particular product from £10 to £8 and as a result total revenue rises from £2000 to £2080. The price elasticity of demand for this product is:
A-level Component 1, June 2017, Q5
In the diagram below, point A indicates the equilibrium price and quantity of white rice sold in a country per year. Suppose that there is a decrease in the price of brown rice and an increase in sales tax on white rice. Which point (U-Z)…
A-level Component 1, June 2017, Q10
As the price of a product rises following an increase in production costs which one of the following will rise?
A-level Component 1, June 2017, Q12
The diagram below shows the market for a product in equilibrium at a price of £50 and quantity of 300 units per week. The supply curve meets the price axis at £20 and the demand curve meets it at £90. What is the value of the producer…
A-level Component 1, June 2017, Q15
The substitution and income effects of a price change are associated with the slope of the:
A-level Component 1, June 2017, Q16
In the matrix below two firms A and B are selling a homogeneous product. They are both considering a pricing strategy unaware of the other firm's intentions and neither trusts each other. The profits each firm could make by selling at a…
A-level Component 1, June 2017, Q19
A sharp increase in both supply and demand in a market would be likely to do which one of the following?

Question text is quoted from the question papers, © WJEC CBAC Ltd (Eduqas), 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 demand, supply and elasticity

Data response questions on demand, supply and elasticity

Short answer questions on demand, supply and elasticity

Multiple choice questions

More Eduqas topics: Microeconomics