IGCSEEconomicsCambridge (CIE)Exam Questions2. The Allocation of Resources2.3 Supply

Syllabus Edition

First teaching 2025

First exams 2027

Supply (Cambridge (CIE) IGCSE Economics): Exam Questions

Exam code: 0455 & 0987

1 hour28 questions

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2.3 Supply

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11 mark

What can cause the supply curve for a product to shift to the right?

  • an increase in demand for the product

  • an increase in government subsidies to producers

  • an increase in indirect taxes on the product

  • an increase in the costs of production

Choose your answer

21 mark

What does individual supply refer to?

  • The total quantity of a product supplied in the market

  • The quantity of a product supplied by an individual producer

  • The demand for a product by an individual consumer

  • The price of a product in the market

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31 mark

What is the key difference between individual supply and market supply?

  • Individual supply considers the quantity supplied by all producers, while market supply focuses on a single producer's output

  • Individual supply refers to a single producers supply in the market, while market supply refers to the supply by all the producers

  • Individual supply refers to the total supply in the market, while market supply refers to the supply by individual producers

  • There is no difference; the terms are used interchangeably

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41 mark

What term describes a graph that illustrates the relationship between the quantity of a good supplied by an individual producer and its price?

  • Demand curve

  • Market supply curve

  • Supply schedule

  • Individual supply curve

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51 mark

How does an improvement in technology typically affect supply?

  • Supply increases

  • Supply decreases

  • Supply remains unchanged

  • Supply becomes inelastic

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11 mark

What is not held constant when constructing the supply curve of a firm?

  • indirect taxes and subsidies on the firm’s products

  • the level of technology used by the firm in production

  • the price of the factors of production paid for by the firm

  • the market price of the good produced by the firm

Choose your answer

21 mark

If the government imposes a tax on a product, what is the likely impact on its supply curve?

  • The supply curve shifts to the left

  • The supply curve shifts to the right

  • The supply curve remains unchanged

  • The supply curve becomes inelastic

Choose your answer

31 mark

How does an increase in the number of suppliers in a market impact the supply curve?

  • The supply curve becomes less elastic

  • The supply curve shifts to the left

  • The supply curve becomes more elastic

  • The supply curve shifts to the right

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41 mark

What is the effect on the supply curve of a product if there is an increase in the price of a key raw material used in its production?

  • The supply curve shifts to the left

  • The supply curve remains unchanged

  • The supply curve shifts to the right

  • The supply curve becomes inelastic

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51 mark

What effect would an increase in government subsidies for solar panel manufacturers have on the supply of solar panels?

  • Supply would increase

  • Supply would decrease

  • Supply would remain unchanged

  • Supply would become elastic

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61 mark

In the diagram below, there is a shift of the demand curve for rice from D1 to D2.

Supply and demand graph with three supply curves (S1, S2, S3) and three demand curves (D1, D2, D3) intersecting around price P and quantity Q.

What could have caused this?

  • a fall in population

  • a fall in consumer incomes

  • an increase in the price of pasta

  • a fall in the price of rice

Choose your answer

71 mark

A rise in wages in the car industry increases production costs.
What will happen to the supply curve of cars?

  • shift to the left

  • shift to the right

  • movement up the curve

  • movement down the curve

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11 mark

There has been a movement upwards along the supply curve of a product.

What is the most likely explanation for this?

  • Consumer incomes have fallen.

  • New technology has made the product cheaper to produce.

  • The government has imposed a tax on the product.

  • The price of a substitute has increased.

Choose your answer

21 mark

What impact does an increase in the cost of labor have on the supply curve for a product?

  • It shifts the supply curve to the right

  • It shifts the supply curve to the left

  • It causes a movement along the supply curve to the right

  • It causes a movement along the supply curve to the left

Choose your answer

31 mark

If a natural disaster destroys a significant portion of a country's agricultural land, what is the likely impact on the supply of food products?

  • Supply would increase due to higher prices

  • Supply would decrease due to lower prices

  • Supply would remain unchanged due to government intervention

  • Supply would decrease due to reduced production capacity

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41 mark

How does a decrease in an indirect tax rate typically affect the producer's willingness to supply a product?

  • It decreases the willingness to supply

  • It increases the willingness to supply

  • It has no impact on the willingness to supply

  • It leads to inelastic supply

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51 mark

Which of the following factors is likely to cause a rightward shift in the supply curve for smartphones?

  • An increase in the cost of raw materials used in smartphone production

  • A increase in the wages of smartphone assembly workers

  • A decrease in consumer demand for smartphones

  • A technological breakthrough that increases smartphone production efficiency

Choose your answer