WJEC · Microeconomics · Demand, supply and elasticity

WJEC Economics past paper questions: Demand, supply and elasticity

Every WJEC question on Demand, supply and elasticity from 2016 to 2025: 1 essay, 18 data response questions, 3 short answer questions and 34 multiple choice questions. It covers Government intervention in markets, Aggregate demand, Costs, revenues and profit, The economic problem and resource allocation and The labour market. Each question links to its paper, mark scheme and examiner report.

Filter these in the tool

SubtopicsGovernment intervention in markets 8Aggregate demand 4Costs, revenues and profit 3The economic problem and resource allocation 3The labour market 2Public finances and the role of the state 1The financial sector 1International trade and exchange rates 1

Essay questions on demand, supply and elasticity

A-level Unit 4, June 2022, Q1(a)Optional10 marks

Using relevant diagrams, explain how a long-run equilibrium position is reached in a perfectly competitive market structure.

Examiner insight

What to cover: Explain the adjustment, not just the end point. From short run abnormal profit, free entry raises market supply, the market price falls, the individual firm's AR and MR shift down, and entry stops when AR is tangential to AC and only normal profit is earned. Run the loss making case in reverse.
Watch out: Middling answers made diagram errors: macro labels on a micro diagram, shifting cost curves instead of revenue curves, or drawing a monopoly. Tie the explanation to profit maximisation plus free entry.

Question paper p.2 Mark scheme p.4 Examiner report p.17 Open in the tool Draw it: perfect competition diagram

Data response questions on demand, supply and elasticity

AS Unit 2, June 2025, Q1(c)10 marks

Case study: Heating Up

Using the data, discuss whether wood-burning stoves and gas boilers can be considered strong substitutes.

Examiner insight

What to cover: Define substitutes, then focus on the strength of the relationship, which is what the question asks. Use the data on the price of gas and the growth in sales of wood burning stoves to argue how closely consumers switch between them.
Watch out: Many candidates never addressed the strength of the relationship, which capped their marks. If you try an XED calculation, note that the data gives the price of gas, not of gas boilers, and that sales doubling is a 100 per cent increase, not 200 per cent.

Question paper p.3 Mark scheme p.5 Examiner report p.11 Open in the tool

AS Unit 1, June 2024, Q18(b)Calculate2 marks

Calculate the revenue from VAT receipts as a percentage of the UK Government's total revenue in 2021–2022.

Question paper p.14 Mark scheme p.9 Examiner report p.7 Open in the tool

AS Unit 1, June 2023, Q16(a)2 marks

With reference to the data, outline what is meant by the term 'diminishing marginal utility'.

Question paper p.10 Mark scheme p.5 Examiner report p.7 Open in the tool

AS Unit 1, June 2023, Q16(b)Calculate2 marks

Calculate the student's total consumer surplus from her visits to the centre over her summer holiday.

Question paper p.10 Mark scheme p.5 Examiner report p.7 Open in the tool

AS Unit 2, June 2023, Q1(a)4 marks

Case study: SIN CITY

Using the data in Figure 1, calculate the estimated price elasticity of demand (PED) for the following goods and state whether they have price elastic or price inelastic demand. (i) Foreign travel (ii) Sugary soft drinks

Question paper p.3 Mark scheme p.4 Examiner report p.9 Open in the tool

AS Unit 1, June 2022, Q17(a)Calculate1 mark

Calculate the consumer surplus in the UK vanilla ice cream market.

Question paper p.16 Mark scheme p.7 Examiner report p.4 Open in the tool

AS Unit 1, June 2022, Q17(b)3 marks

(i) Adapt the diagram above to reflect the 50p per unit increase in the production costs for vanilla ice cream. (ii) On the diagram, shade in the producer surplus in the UK vanilla ice cream market after the change.

Question paper p.16 Mark scheme p.7 Examiner report p.4 Open in the tool Draw it: supply and demand diagram

AS Unit 1, June 2022, Q17(c)6 marks

Consider whether vanilla pods and vanilla ice cream should be considered complementary goods.

Question paper p.17 Mark scheme p.8 Examiner report p.4 Open in the tool

AS Unit 2, June 2022, Q1(b)2 marks

Case study: SALMON FARMING IN SCOTLAND

Outline whether salmon is a normal or an inferior good.

Question paper p.3 Mark scheme p.4 Examiner report p.7 Open in the tool

AS Unit 2, June 2022, Q1(c)Explain6 marks

Case study: SALMON FARMING IN SCOTLAND

With reference to lines 6–11, explain why salmon prices have risen. Use a supply and demand diagram in your answer.

Question paper p.3 Mark scheme p.5 Examiner report p.7 Open in the tool Draw it: supply and demand diagram

AS Unit 2, June 2022, Q1(d)6 marks

Case study: SALMON FARMING IN SCOTLAND

Consider whether the supply of farmed salmon is price inelastic or price elastic.

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

AS Unit 2, June 2022, Q1(f)Discuss12 marks

Case study: SALMON FARMING IN SCOTLAND

Discuss the likely impacts on the Scottish economy of the closure of all salmon farms.

Examiner insight

What to cover: Work through the impacts on Scotland: lost output and exports, unemployment in coastal communities, a negative multiplier effect on local spending, lost tax revenue, effects on the supply chain.
Watch out: Even strong candidates struggled to evaluate here. Deciding how much each negative effect matters is easier than finding benefits, and earns the same marks.

Question paper p.3 Mark scheme p.11 Examiner report p.7 Open in the tool

AS Unit 1, June 2019, Q17(b)4 marks

Using price elasticity of demand (PED) calculations, explain why PED changes along a straight line downward sloping demand curve.

Question paper p.12 Mark scheme p.6 Examiner report p.4 Open in the tool

AS Unit 2, June 2018, Q1(b)Explain4 marks

Case study: PLASTIC BAGS: TO CHARGE OR NOT TO CHARGE?

With reference to lines 5-7, draw a supply curve for the production of plastic bags and explain the curve that you have drawn.

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

Case study: PLASTIC BAGS: TO CHARGE OR NOT TO CHARGE?

Consider whether the price elasticity of demand for plastic bags is likely to be elastic or inelastic.

Question paper p.3 Mark scheme p.5 Examiner report p.6 Open in the tool

A-level Unit 3, June 2017, Q3(b)Explain4 marks

Explain possible reasons why a Keynesian economist might disagree that a new equilibrium at P3Y1 would be reached.

Question paper p.6 Mark scheme p.6 Examiner report p.10 Open in the tool

AS Unit 1, June 2017, Q166 marks

Using the data, compare the likely income elasticities of demand (YED) for milk and alcohol.

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

AS Unit 2, June 2017, Q1(b)6 marks

Case study: ALL THAT IS GOLD DOES NOT GLITTER

Using the data, discuss the extent to which gold and US dollars can be considered to be substitutes.

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

Short answer questions on demand, supply and elasticity

AS Unit 1, June 2025, Q16(a)Explain2 marks

Explain why supply curves will normally slope upwards from left to right.

Question paper p.12 Mark scheme p.4 Examiner report p.7 Open in the tool

AS Unit 1, June 2025, Q16(b)Calculate2 marks

Calculate the value of consumer surplus at the new equilibrium price of £3.20.

Question paper p.12 Mark scheme p.4 Examiner report p.7 Open in the tool

The following payoff matrix illustrates possible profit (in £ m) if Costa and Starbucks decide to compete in terms of price. Starbucks High Price Low Price High Price 95, 45 65, 50 Costa Low Price 120, 30 75, 40 Indicate the Nash equilibrium in this scenario, and justify your answer.

Question paper p.5 Mark scheme p.5 Examiner report p.10 Open in the tool

Multiple choice questions

AS Unit 1, June 2025, Q4
The demand for a service rises and, at the same time, the supply falls. Ceteris paribus, what is the impact on the equilibrium price and quantity? Price Quantity
AS Unit 1, June 2025, Q5
According to the International Energy Agency (IEA), global demand for coal reached a record high at the start of 2023. The quantity demanded had increased by 1.4% in the previous 12 months. The global coal price fell significantly from…
AS Unit 1, June 2025, Q6
According to academic research in Turkey, the income elasticity of demand for coal has been estimated at +4.8. Assuming that the demand for coal in Turkey rose by 1.4%, calculate the % change in income to 2 decimal places.
AS Unit 1, June 2024, Q1
In April 2022, VAT was removed from solar panels in the UK. This would be most likely to cause a decrease in:
AS Unit 1, June 2024, Q4
Which one of the following can be concluded from the data in the table?
AS Unit 1, June 2024, Q5
According to the data in the table, a 10% increase in the price of fruit would lead to a:
AS Unit 1, June 2024, Q10
In response to this, McDonald's announced that the price of a Big Mac would fall by 6%. In theory, this implies that the demand for a McDonald's Big Mac is:
AS Unit 1, June 2023, Q6
Across Europe, milk prices rose by 50% in 2021. What was most likely to have caused this price rise?
AS Unit 1, June 2023, Q8
A government report found that expenditure on food would increase by $0.54 in Tanzania and by $0.02 in the USA if household incomes rose by $1 in each country. Which one of the following can be concluded from the data?
AS Unit 1, June 2023, Q14
In November 2021, the price of coal rose to its highest level since 2009. This was a result of increased demand from electricity producers, who switched to using coal from natural gas, after the price of natural gas doubled. A coal…
AS Unit 1, June 2022, Q1
In 2019, the department store, John Lewis, saw demand for landline phone handsets fall by 20%. This would be most likely to cause:
AS Unit 1, June 2022, Q5
Baijiu is a popular Chinese alcoholic drink. Two popular brands are Shunxin and Maotai. Shunxin has an income elasticity of demand of −1.25 whilst Maotai has an income elasticity of demand of +0.4. If average income in China falls by 2%…
AS Unit 1, June 2022, Q7
Bitcoin is a so-called 'cryptocurrency' that is exchanged like any other currency on the foreign exchange market. The graph below shows the value of Bitcoin in US $ during the first half of 2018. Price in US $ 1/1/2018 12/3/2018 21/5/2018…
AS Unit 1, June 2022, Q10
In a 2019 survey, 70% of Netflix subscribers said that they would cancel their subscription to the streaming service in response to a 20% price increase. If true, this implies that demand for Netflix is:
AS Unit 1, June 2022, Q14
George's Paints PLC and RuthBrush PLC are the country's leading manufacturers of industrial paints and their products compete directly with each other in the market. Which one of the following statements would you expect to be correct?
AS Unit 1, June 2022, Q15
The diagram below shows a demand curve faced by a pizza delivery company in Newport. Price (£) 10.00 7.99 D Quantity of pizzas 300 500 (per week) If the company cuts the price of its pizzas from £10.00 to £7.99, this will:
AS Unit 1, June 2019, Q2
The Law of Diminishing Marginal Utility explains:
AS Unit 1, June 2019, Q3
The diagram below shows the labour market equilibrium for childcare workers in the UK. The market is in equilibrium at Q1, W1. S3 Wages S1 S2 W2 W1 W3 D2 D1 D3 Q3 Q1 Q2 Quantity A newly-elected government then introduces new legislation…
AS Unit 1, June 2019, Q5
The table below shows a market demand schedule and a market supply schedule for tomatoes. Quantity demanded Quantity supplied per Price per tonne per month month (£) (millions of tonnes) (millions of tonnes) 280 4.0 9.2 260 5.0 8.8 240 6.4…
AS Unit 1, June 2019, Q9
The demand for Good X is both price inelastic and income inelastic. Good X is also a complement to Good Y. Identify Good X from the table below. Price elasticity Income elasticity Cross-elasticity with of demand of demand Good Y
AS Unit 1, June 2019, Q13
The Government decides to use a per unit subsidy to reduce the price of an agricultural product. The price of the product will fall the most when:
AS Unit 1, June 2018, Q5
Which of the following indicates that two goods are complementary?
AS Unit 1, June 2018, Q9
Which of the following could explain a movement to a new equilibrium at point M?
AS Unit 1, June 2018, Q10
Which of the following is correct if equilibrium shifts from point J to point K?
AS Unit 1, June 2018, Q13
The diagram below represents the demand curve for a product. P A P1 B F C P2 E Q1 Q2 Q The price falls from P1 to P2 and, as a result, the increase in consumer surplus is area:
AS Unit 1, June 2017, Q9
Calculate producer surplus before the imposition of the maximum price at £5:
AS Unit 1, June 2017, Q10
Calculate consumer surplus after the imposition of the maximum price at £5:
AS Unit 1, June 2017, Q11
Calculate price elasticity of demand (PED) for glasses of lemonade between day one and day two.
AS Unit 1, June 2017, Q12
What was the difference in revenue between day one and day two?
AS Unit 1, June 2016, Q4
The diagram shows a demand and supply curve for a product. D P S Q If the Government were to impose a specific unit tax on the product then the burden of tax would fall:
AS Unit 1, June 2016, Q5
The excess demand created by a maximum price imposed below the free market equilibrium will be greatest if:
AS Unit 1, June 2016, Q9
Product X is price elastic in demand and is an inferior good. It also has a close substitute in the form of product Z. Possible elasticities in this case might be: Cross elasticity of Price elasticity of Income elasticity of demand between…
AS Unit 1, June 2016, Q12
A decrease in the price of a particular good, with all other variables staying constant, causes:
AS Unit 1, June 2016, Q15
The market for potatoes is initially in equilibrium. At the same time as floods hit potato growers, new research is published into the health problems associated with eating crisps and chips. Which of the following is the most likely…

Question text is quoted from the question papers, © WJEC CBAC Ltd, 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

Examiner insight

Data response questions on demand, supply and elasticity

Examiner insight

Examiner insight

Short answer questions on demand, supply and elasticity

Multiple choice questions

More WJEC topics: Microeconomics