Demand, Supply & Market Equilibrium (Edexcel IGCSE Economics): Exam Questions

Which one of the following diagrams shows excess supply?

Figure 1 shows the market for tennis balls.

Using the diagram below, draw the likely effects on the market for tennis balls after a fall in the price of tennis rackets. Label the new curve, the new equilibrium price and the new equilibrium quantity.

Which one of the following diagrams shows excess demand?

Figure 1 shows the market for rice.

Using the diagram below, draw the likely effect of an increase in the population on the market for rice. Label the new curve, the new equilibrium price and the new equilibrium quantity.

Which one of the following is most likely to cause a shift to the left of the demand curve?

A factory has been unable to meet the demand for its product due to a shortage of raw materials. The quantity demanded for the product during each of the first three months of 2024 is shown in Table 1.

Table 1

Calculate the excess demand for the product for the first three months of 2024,if the quantity supplied during each month was 11,000 (33,000 in total). You are advised to show your working.

Figure 1 shows the market for trainers.

Using the diagram below, draw the likely effects on the market after a popular celebrity was seen wearing trainers. Label the new curve, the new equilibrium price and the new equilibrium quantity.

A tagine is a type of cooking pot which is used to make meals throughout Morocco. Almost every home in Morocco has one. They have also become an increasingly popular purchase for tourists who want to take home a souvenir of their travels. Producers can sell tagines in markets all over Morocco. However, as demand has increased, many have chosen to sell in the areas visited by tourists, such as Marrakesh.

With reference to the data above and your knowledge of economics, analyse how the equilibrium price of tagines sold to tourists is determined.

What is meant by the term supply?

Using the diagram below, draw the likely effect on the market for luxury holidays after a fall in income. Label the new curve, the new equilibrium price and the new equilibrium quantity.

Figure 1 below shows a change in demand for tickets to a sporting event.

Which one of the following statements is true?

Define the term excess supply.

Using the diagram below, draw the likely effects on the market for apples following a decrease in the price of bananas. Label the new curve, the new equilibrium price and the new equilibrium quantity.

Figure 2 shows the supply of wheat in a region during 2019.

Explain one effect on the supply curve of wheat following a change in the price of wheat.

A restaurant in Cyprus can seat 136 diners each evening. The demand for seats from diners over three evenings is shown in Table 1.

Table 1

Calculate the excess supply of seats if the quantity supplied during these three evenings totalled 408. You are advised to show your working.

State one reason why a demand curve will shift to the left.

Using the diagram below, draw the likely effects on the market for crops after farmland is damaged by flooding. Label the new curve, the new equilibrium price and the new equilibrium quantity.

Figure 3 shows the demand for cocoa beans during 2019.

Explain one effect on the demand curve for cocoa beans following a change in the price.

A concert venue in Malaysia holds a maximum of 3,200 people for each performance. The quantity of tickets demanded for the most recent concerts is shown in Figure 5.

Figure 5

Calculate the excess demand for tickets if the quantity supplied for all three concerts totals 9,600. You are advised to show your working.

Using the diagram below, draw the likely effects on the market for cars of the introduction of more effective technology in production. Label the new curve, the new equilibrium price and the new equilibrium quantity.

Which one of the following factors may cause a shift of the demand curve?

In the capital of Laos, Vientiane, residents and tourists can now use the LOCA app to hire a taxi. Figure 4 shows the excess supply of LOCA drivers working in an area of the city when the price of a journey is 10000 Kip.

With reference to the data above and your knowledge of economics, analyse how market forces can remove excess supply.

Figure 5 shows the population in Austria in the years 2000, 2008 and 2018.

Figure 5

Calculate, to two decimal places, the percentage change in the population in Austria between 2000 and 2018. You are advised to show your working.

Using the diagram below, draw the likely effects on the market for smartphones following a rise in the cost of raw materials. Label the new curve, the new equilibrium price and the new equilibrium quantity.

The New Zealand Government is to introduce new legislation to limit the interest rate firms can charge on loans made to customers. The maximum interest rate firms can charge will be 0.8% per day.

Explain one reason why the New Zealand Government may be introducing this legislation.

During the 2019 Cricket World Cup, supporters of teams such as India, Bangladesh, England, Pakistan and Sri Lanka watched matches at stadiums and on television around the world. Pepsi was one of the main advertisers during the event.

With reference to the data above and your knowledge of economics, analyse how the demand curve for Pepsi might have been affected during the 2019 Cricket World Cup.

Using the diagram below, draw the likely effects of an increase in income on the equilibrium price and quantity for wireless headphones. Label the new curve, the new equilibrium price and quantity.

Using the diagram below, draw the effects on the equilibrium price and quantity after the government removes an indirect tax on sustainable fuel. Label the new curve, the new equilibrium price and quantity.

Which one of the following diagrams shows excess supply?

Which one of the following options shows the effects on the market for motorcycle helmets after a fall in the price of motorcycles?

Private facilities in which swimmers can change clothes are available at the swimming pool in Ciney, Belgium. The quantity demanded for these facilities during each of the first three months of 2019 is shown in Figure 1.

Figure 1

Calculate the excess demand for private changing facilities for the first three months of 2019 if the quantity supplied during each month was 3,000 (9,000 in total). You are advised to show your working.

Using the diagram below, draw the likely effects on the market for bread after a decrease in the population. Label the new curve, the new equilibrium price and the new equilibrium quantity.

Which one of the following is most likely to cause a shift to the left in the supply curve?

Which one of the following diagrams shows the new equilibrium price and quantity for lemon ice cream in Thailand following a price reduction in chocolate ice cream?

Tour guides are available to accompany tourists who visit the Terracotta Army collection of sculptures in Xi’An, China. The quantity of tour guides demanded for the first three months of 2019 is shown below.

Figure 1

Calculate the excess supply of tour guides if the quantity supplied during this three‐month period was 6,000 (2,000 per month). You are advised to show your working.

Using the diagram below, draw the likely effects of an increase in the birth rate on the market for toys. Label the new curve, the new equilibrium price and the new equilibrium quantity.

A powerful typhoon destroyed property on the island of Lamma in Hong Kong. Owners of restaurants that were damaged think it may take two or three months for them to fully reopen. This was due to flood damage and replacing equipment that was washed away. The repair costs for one restaurant owner was an estimated HK$300000 to HK$400000.

(Source adapted from: https://www.scmp.com/news/hong-kong/society/article/ (opens in a new tab)2164928/long-road-recovery-hong-kongs-outlying-islands-after-typhoon)

With reference to the data above and your knowledge of economics, analyse how natural factors such as adverse weather may cause a shift in the supply curve.

What is meant by the term demand?

Using the diagram below, draw the effects on the market for crops after a hurricane destroys farm land. Label the new curve, new equilibrium price and new equilibrium quantity.

State one factor that will cause a demand curve to shift to the left.

Beating the congestion in Dhaka

Nearly 17 million people live in Dhaka, the capital of Bangladesh. The majority of people live in the city centre and traffic congestion is a problem. However, there are many auto rickshaws (a small, three-wheeled vehicle, driven by a motorcycle engine) competing in the city centre to take passengers to their destinations. Fares tend to be cheaper in the city centre than they are outside the city centre and are usually agreed between passengers and drivers.

Dhaka has a large number of auto rickshaws competing for fares.

With reference to the information given in ‘Beating the congestion in Dhaka’, explain one reason why prices for journeys using an auto rickshaw might be higher outside the city centre.

A lack of space in many busy cities means parking is an increasing problem. Japan has developed the first Automated Parking Systems (APS). These are car parks where the cars are automatically stacked. The driver takes the car to the entrance, then technology takes over, placing each car on racks, one above the other. This allows many cars to be parked in a very small area. Not only do they offer a more practical use of space than traditional multi-storey car parks, but they cost less to build. The drivers benefit from cheaper parking fees and they save time.

(Source: adapted from http://japantravelmate (opens in a new tab).com/cool-japan/things-see-japans-automated-rotary-parking-systems)

With reference to the data above and your knowledge of economics, assess the extent to which changes in technology may reduce the shortage of car parking spaces in city centres.

Figure 6 shows the quantity of a good supplied and demanded at different price levels.

Using the information in Figure 6, calculate the excess supply of goods in the market at a price of $50. You are advised to show your working.

Define the term substitute good.

Using the diagram below, draw the effects on the market for locally sourced goods of more customers preferring to buy from local firms. Label the new curve, new equilibrium price and new equilibrium quantity.

Figure 4 shows the quantity of a good supplied and demanded at different price levels.

Using the information in Figure 4, calculate the excess demand of goods in the market at a price of $20. You are advised to show your working.