Demand — Paper 1 · IGCSE Economics 0455

12 The graphs show four changes in the market for tobacco. The original equilibrium is X. Which graph shows the effect of a successful government advertising campaign against smoking? A B S S p2 p1 p1 X price X price p2 D2 D1 D2 D1 O q1 q2 O q2 q1 quantity quantity C D S1S2 S2 S1 p2 p1 X p1 X price p2 price D D O q1 q2 O q2 q1 quantity quantity

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2004

15 On the diagram D1D1 and S1S1 are the original demand and supply curves for tea in a country. D2 S1 D1 price S1 D2 D1 O quantity What would cause the demand curve to shift from D1D1 to D2D2? A a decrease in the population B a decrease in wage levels C an increase in the price of coffee D an increase in the price of sugar

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2004

10 What is not held constant in calculating a demand schedule? A the incomes of consumers B the prices of complementary goods C the price of the good itself D the tastes of consumers

1 marks

Answer: C

This question in 0455/11 May/June 2006

13 In 2002 in Paris there was a decrease in demand for theatre tickets. What might have caused this? A a decrease in fares on public transport in Paris B a decrease in the number of tourists in Paris C an increase in the number of jobs available in Paris D an increase in the subsidy given to theatres in Paris

1 marks

Answer: B

This question in 0455/11 May/June 2006

19 The table shows the demand schedule for maize. price per kilo quantity demanded ($) (kilos per day) 3 300 4 240 5 200 6 150 7 140 8 100 What will happen if price rises from $5 to $6 per kilo? A Total revenue will rise. B Demand will rise. C Total revenue will fall. D Total costs will rise.

1 marks

Answer: C

This question in 0455/11 May/June 2006

8 The diagram shows a change in the demand for a company’s products as a result of a change in advertising. D1 S1 D2 price D1 S1 D2 O quantity What has increased? A the cost of advertising to the company B the cost of advertising to a rival company C the expenditure on advertising by the company D the expenditure on advertising by a rival company

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2006

10 A demand curve for a product shows the relationship between its price and A the cost of production. B the demand for a substitute good. C the quantity of the product consumed. D the tastes of consumers.

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2006

11 In January 2005 house prices in the UK fell. What might have caused this? A Average incomes rose. B Interest rates fell. C The number of buyers rose. D The number of houses for sale rose.

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2006

20 What is the most likely reason for a company to employ more workers? A increased demand for its product B increased taxes on the product C investment in labour-saving machinery D wage rises in the company

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2006

10 A demand curve for a product shows the relationship between its price and A cost of production. B population changes. C the income of the consumer. D the quantity of the product consumed.

1 marks

Answer: D

This question in 0455/11 May/June 2007

11 The following was printed in a magazine. More soft drinks are being consumed than ever before by the 16 – 34 age group. Schweppes, the drink manufacturers, claim that over 45 per cent of their soft drinks are now being consumed without alcohol as people switch away from alcoholic spirits. How would this change be represented on a demand and supply diagram for soft drinks? A decrease in demand B decrease in supply C increase in demand D increase in supply

1 marks

Answer: C

This question in 0455/11 May/June 2007

13 A country imports oil which is used in the production and distribution of goods. The country has also experienced a rise in incomes which has resulted in a large increase in the demand for goods, some of which it imports. What is likely to happen to the country’s balance of trade in goods and to the price of oil? balance of trade in price of oil goods A worsens falls B improves falls C worsens rises D improves rises

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2007

11 Which pair is an example of products in complementary (joint) demand? A bananas and oranges B cars and petrol C tea and coffee D wheat and straw

1 marks

Answer: B

This question in 0455/11 May/June 2008

12 What combination of events might cause a rise in the willingness and the ability of consumers to buy a product? price of a substitute tax rates product A decrease decrease B decrease increase C increase increase D increase decrease

1 marks

Answer: D

This question in 0455/11 May/June 2008

14 What is a firm’s aim when it advertises its product? A to shift its demand curve to the left B to shift its supply curve to the left C to shift its demand curve to the right D to shift its supply curve to the right

1 marks

Answer: C

This question in 0455/11 May/June 2008

10 In 2004, Dyson, a UK company, launched a luxury version of its vacuum cleaner in Japan. Within two years, it became the top-selling vacuum cleaner in the country. What could have caused this increase in demand? A a fall in the population of Japan B a fall in the price of alternative vacuum cleaners in Japan C rising levels of unemployment in Japan D successful advertising of Dyson vacuum cleaners in Japan

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2008

12 More of a product is demanded at the same price. How would this be shown on a diagram of the demand curve? A a downward movement along the demand curve B a leftward shift in the demand curve C a rightward shift in the demand curve D an upward movement along the demand curve

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2008

6 Which statement could explain a decrease in the demand for natural rubber? A Demand for car tyres has increased. B New techniques of producing substitutes for rubber have been introduced. C Productivity of rubber plantations has increased. D The area of land on which rubber is grown has increased.

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2010

17 In 2008, the world’s largest metal mining company, BHP, increased its profits by 20 %. What could have helped that happen? A a decrease in economic growth in the UK and the US B an increase in demand from China C more competition from other companies D more difficult mining conditions

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2010

7 Which statement could explain a decrease in the demand for natural rubber? A Demand for car tyres has increased. B New techniques of producing substitutes for rubber have been introduced. C Productivity of rubber plantations has increased. D The area of land on which rubber is grown has increased.

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2010

18 In 2008, the world’s largest metal mining company, BHP, increased its profits by 20 %. What could have helped that happen? A a decrease in economic growth in the UK and the US B an increase in demand from China C more competition from other companies D more difficult mining conditions

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2010

8 Which statement could explain a decrease in the demand for natural rubber? A Demand for car tyres has increased. B New techniques of producing substitutes for rubber have been introduced. C Productivity of rubber plantations has increased. D The area of land on which rubber is grown has increased.

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2010

5 Due to changes in the costs of production, an industry’s supply curve shifted at various times from S1 to either S2 or S3. S2 S1 S3 w price x y D2 D1 O quantity If a shift in supply was due to a seasonal increase in the cost of raw materials, what would have been the effect on demand? A The demand curve would move from D1 to D2. B The quantity demanded would move from x to w. C The quantity demanded would move from x to y. D The quantity demanded would remain the same at x.

1 marks

Answer: B

This question in 0455/11 May/June 2011

9 Due to changes in the costs of production, an industry’s supply curve shifted at various times from S1 to either S2 or S3. S2 S1 S3 w price x y D2 D1 O quantity If a shift in supply was due to a seasonal increase in the cost of raw materials, what would have been the effect on demand? A The demand curve would move from D1 to D2. B The quantity demanded would move from x to w. C The quantity demanded would move from x to y. D The quantity demanded would remain the same at x.

1 marks

Answer: B

This question in 0455/13 May/June 2011

6 What is not held constant in constructing a demand schedule? A the incomes of consumers B the prices of complementary goods C the price of the good itself D the tastes of consumers

1 marks

Answer: C

This question in 0455/11 May/June 2012

6 What is not held constant in constructing a demand schedule? A the incomes of consumers B the prices of complementary goods C the price of the good itself D the tastes of consumers

1 marks

Answer: C

This question in 0455/12 May/June 2012

6 What is not held constant in constructing a demand schedule? A the incomes of consumers B the prices of complementary goods C the price of the good itself D the tastes of consumers

1 marks

Answer: C

This question in 0455/13 May/June 2012

19 The market for a normal good is in equilibrium at point X. Consumers’ incomes fall and the cost of producing the good rises. In which area of the diagram will the new equilibrium be? supply A price D X B C demand O quantity

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2012

7 In June 2010, a government published a proposal to increase Value Added Tax (Goods and Services Tax) on some goods from January 2011. Between June 2010 and January 2011 consumers bought more of those goods before the price increase occurred. After January, consumers bought less of the goods. How would the changes be shown on a demand diagram for the goods? from June-January after January A a movement down the curve a shift of the curve to the right B a movement up the curve a shift of the curve to the right C a shift of the curve to the left a movement down the curve D a shift of the curve to the right a movement up the curve

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2012

4 In the 2016 Olympics in Brazil, the opening ceremony will take place in the Maracana Stadium, which can seat 82 000 spectators. It is expected that all tickets for the ceremony will be sold quickly, leaving many people dissatisfied. What can be concluded from this? A Price elasticity of demand for tickets will be perfectly elastic. B Some people will be able to resell their tickets at a higher price than they paid for them. C The Olympic authority will make more tickets available for sale. D This will be an example of market failure.

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2013

5 The diagrams show different conditions of demand and supply for a product. In which diagram would market price remain unchanged if consumers’ incomes fell? A B C D S D S S price price price price S D D D O quantity O quantity O quantity O quantity

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2013

6 In 2011, a company selling milk in glass bottles replaced them with new plastic bottles. When they were introduced, the equilibrium quantity on the market fell. What could be a reason for this fall? A Consumers preferred the new bottle because it was lighter to carry. B Milk from the farms used to fill the bottle cost more. C The bottle was cheaper than the existing glass bottle to produce. D The new bottle was introduced with a successful advertising campaign.

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2013

11 When will a trade union find it easier to achieve higher wages for its members? A when consumers demand more of the product made B when the company has a decrease in profits C when the cost of raw materials increases D when unemployment increases

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2013

5 The diagrams show different conditions of demand and supply for a product. In which diagram would market price remain unchanged if consumers’ incomes fell? A B C D S D S S price price price price S D D D O quantity O quantity O quantity O quantity

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2013

6 Supermarkets sell petrol (gas) outside their stores. They reduce the price of petrol below other suppliers to attract more customers to buy goods in the store when they buy more petrol. If this were successful, how might it be shown on demand and supply diagrams? demand and supply demand and supply diagram for petrol diagram for the store’s goods A shift of the demand curve to the left shift of the supply curve to the left B shift of the demand curve to the right shift of the demand curve to the left C shift of the supply curve to the left shift of the supply curve to the right D shift of the supply curve to the right shift of the demand curve to the right

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2013

11 When will a trade union find it easier to achieve higher wages for its members? A when consumers demand more of the product made B when the company has a decrease in profits C when the cost of raw materials increases D when unemployment increases

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2013

5 What would cause a movement down the demand curve for cars? A a fall in the price of cars B a fall in the price of petrol C a rise in the price of car insurance D a rise in the price of public transport

1 marks

Answer: A

This question in 0455/11 May/June 2014

5 Russia is the world’s third largest exporter of grain but much of the country’s farmland was damaged by fire in 2010. How would this be represented on demand and supply diagrams for the Russian grain market and for a country importing Russian grain? market for Russian grain Russian grain market in the importing country A demand curve shifts to the left demand curve shifts to the right B demand curve shifts to the right supply curve shifts to the right C supply curve shifts to the left supply curve shifts to the left D supply curve shifts to the right demand curve shifts to the left

1 marks

Answer: C

This question in 0455/13 May/June 2014

7 What would cause a movement down the demand curve for cars? A a fall in the price of cars B a fall in the price of petrol C a rise in the price of car insurance D a rise in the price of public transport

1 marks

Answer: A

This question in 0455/13 May/June 2014

4 As the demand for new houses increases, the demand for plumbers and electricians also increases. What does this statement illustrate? A The demand for plumbers and electricians is complementary (joint) demand. B The productivity of plumbers and electricians increases continually. C There is no limit to the number of plumbers and electricians employed. D The supply of plumbers and electricians is totally elastic.

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2014

11 The construction industry in Dubai relies on many migrant workers from India. Which combination of changes in the economies of Dubai and India would be most likely to increase the wages of construction workers in Dubai? Dubai economy Indian economy A decrease in economic activity decrease in economic activity B decrease in economic activity increase in economic activity C increase in economic activity decrease in economic activity D increase in economic activity increase in economic activity

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2014

5 In 2011, China’s steel mills bought more coal in order to increase their output. China is the world’s largest consumer of coal. How would this change be shown on a demand and supply diagram for coal? A a fall in price with a movement along the supply curve B a movement along the demand curve with a rise in price C a rise in price with a shift in the supply curve to the left D a shift in the demand curve to the right with a rise in price

1 marks

Answer: D

This question in 0455/13 May/June 2015

29 Which combination of changes would raise the price of the Pakistani rupee on the foreign exchange market? demand for Pakistan’s demand Pakistan’s exports for imports A decrease decrease B decrease increase C increase decrease D increase increase

1 marks

Answer: C

This question in 0455/13 May/June 2015

6 The diagram shows a shift in the demand curve for table-tennis balls. price D1 D2 O quantity What is the most likely cause for this shift in the demand curve? A a fall in the price of the equipment for substitute games B an increase in the membership of table-tennis clubs C a rise in membership fees of table-tennis clubs D the building of more sports clubs providing table-tennis

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2015

7 Air travel and rail travel are substitute forms of transport. The diagram shows the effect of new technology on the market for air travel. S1 S2 price per P1 ticket P2 D O Q1 Q2 quantity of airline tickets What would be the most likely effect on the market for rail transport? A a decrease in demand for rail transport B an increase in the price of rail tickets C an increase in supply of rail transport D an increase in the total income of rail companies

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2015

7 Air travel and rail travel are substitute forms of transport. The diagram shows the effect of new technology on the market for air travel. S1 S2 price per P1 ticket P2 D O Q1 Q2 quantity of airline tickets What would be the most likely effect on the market for rail transport? A a decrease in demand for rail transport B an increase in the price of rail tickets C an increase in supply of rail transport D an increase in the total income of rail companies

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2015

5 A demand curve shows the relationship between the quantity demanded and A a change in income B consumer tastes C the supply of the product D the price of the product

1 marks

This question in 0455/12 Oct/Nov 2016

5 The diagram shows the demand for chocolate. price X Y D O quantity demanded per week What could cause the movement from point X to point Y? A a change in tastes B a fall in the price of chocolate C an increase in income D a successful advertising campaign for chocolate

1 marks

Answer: B

This question in 0455/11 May/June 2017

11 Tea is a very popular drink in Turkey and Morocco but coffee is an alternative drink preferred by many people. Many cafés provide a small biscuit with either a cup of tea or coffee. Some people put sugar in the drinks to sweeten them. How would the relation between these goods be classified? tea and coffee tea and biscuits coffee and sugar A complement complement complement B complement substitute substitute C substitute complement complement D substitute complement substitute

1 marks

Answer: C

This question in 0455/11 May/June 2017

5 The diagram shows the demand for chocolate. price X Y D O quantity demanded per week What could cause the movement from point X to point Y? A a change in tastes B a fall in the price of chocolate C an increase in income D a successful advertising campaign for chocolate

1 marks

Answer: B

This question in 0455/12 May/June 2017

5 The diagram shows the demand for chocolate. price X Y D O quantity demanded per week What could cause the movement from point X to point Y? A a change in tastes B a fall in the price of chocolate C an increase in income D a successful advertising campaign for chocolate

1 marks

Answer: B

This question in 0455/13 May/June 2017

7 People often eat biscuits when they drink a cup of tea. Between 2010 and 2015, the consumption of sweet biscuits decreased because of health warnings about high sugar consumption. Sales of tea, as a result, also fell. How would this be shown on demand and supply diagrams for biscuits and tea? biscuits tea A demand curve moves to left demand curve moves to left B demand curve moves to right demand curve moves to right C movement down along the demand curve demand curve moves to right D movement up along the demand curve demand curve moves to left

1 marks

Answer: A

This question in 0455/13 May/June 2017

5 The diagram shows the market for beef in the US with the original equilibrium at X. What will be the new equilibrium position if incomes in the US rise? S3 price S1 S2 B C X A D D2 D1 D3 O quantity

1 marks

Answer: C

This question in 0455/12 May/June 2018

9 What will be likely to increase the wages of airline pilots? A Incomes increase in the world’s major economies. B Terrorist attacks decrease tourist travel. C The cost of aviation fuel rises. D The world economy goes into recession.

1 marks

Answer: A

This question in 0455/12 May/June 2018

11 What is least likely to lead to an increase in consumer spending on a new car? A a decrease in the cost of car repairs B a decrease in the price of petrol C a decrease in the rate of interest D a decrease in train fares

1 marks

Answer: D

This question in 0455/13 May/June 2018

11 Petrol (fuel) retailers in a country have noticed a sharp increase in sales in August when many people take their holidays. Why might this take place? A Consumers’ demand curve for petrol shifts to the left in August. B Consumers’ demand curve for petrol shifts to the right in August. C Oil refineries increase their output in August. D Travel companies increase their hotel prices in August.

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2018

5 The diagram shows the demand for and the supply of air travel. price of S air tickets $ D2 D1 O number of passengers What could cause a shift of the demand curve from D1 to D2? A an increase in airline costs B an increase in airport taxes C an increase in incomes D an increase in worldwide terrorism

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2018

7 The table shows the demand schedule for a good at different prices. price quantity $ demanded 8 200 10 160 12 120 14 60 The current market price for the good is $10. Following a 20% increase in price, what will be the change in the quantity demanded? A – 60 B – 40 C +120 D +200

1 marks

Answer: B

This question in 0455/11 May/June 2019

6 What can be concluded from the demand curve for the product shown in the diagram? price demand 0 20 40 quantity A Price increases will raise the producers’ revenue. B Producers are unable to respond to a price rise. C The product is one with many substitutes. D There are 20 people able to buy the product.

1 marks

Answer: A

This question in 0455/12 May/June 2019

14 The table shows the sales of cold drinks made by a company in the UK in 2016 and 2017. Demand for cold drinks is influenced by changes in the temperature. In 2016 the sales followed the usual seasonal pattern. sales 2016 sales 2017 month (thousand cans) (thousand cans) April 300 290 May 400 350 June 550 270 July 570 490 August 620 590 In which month of 2017 was the usual pattern disturbed? A May B June C July D August

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2019

14 The table shows the sales of cold drinks made by a company in the UK in 2016 and 2017. Demand for cold drinks is influenced by changes in the temperature. In 2016 the sales followed the usual seasonal pattern. sales 2016 sales 2017 month (thousand cans) (thousand cans) April 300 290 May 400 350 June 550 270 July 570 490 August 620 590 In which month of 2017 was the usual pattern disturbed? A May B June C July D August

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2019

14 The table shows the sales of cold drinks made by a company in the UK in 2016 and 2017. Demand for cold drinks is influenced by changes in the temperature. In 2016 the sales followed the usual seasonal pattern. sales 2016 sales 2017 month (thousand cans) (thousand cans) April 300 290 May 400 350 June 550 270 July 570 490 August 620 590 In which month of 2017 was the usual pattern disturbed? A May B June C July D August

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2019

14 When is it most likely that the demand for labour in an industry increases? A When the demand for the industry’s product increases. B When the level of immigration into the country increases. C When the level of qualifications needed to work in the industry decreases. D When the level of wages paid in the industry increases.

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2020

6 The diagram shows the demand curve for coffee in the US. price P1 P2 demand for coffee O Q1 Q2 quantity Why did the quantity demanded move from Q1 to Q2? A Coffee became cheaper. B Incomes rose in the US. C There was a successful advertising campaign by coffee retailers. D The price of substitutes for coffee rose.

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2020

8 In which occupation would wages tend to increase? A in those where a worker is paid weekly B in those where a worker needs less training C in those where there is an excess demand for labour D in those where work becomes less dangerous

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2020

7 The diagram shows the market equilibrium E for product X. Product X has a downward sloping demand curve and an upward sloping supply curve. The price of a substitute good falls. Into which area of the diagram would the market equilibrium for product X move? price A B E P C D O Q quantity

1 marks

Answer: C

This question in 0455/12 Feb/March 2021

11 A national trade union wishes to increase the wages of its members without reducing the numbers employed. Which factor would help the union to do this? A The demand for the industry’s product is increasing. B The industry consists of a small number of well-organised employers. C The union workers have low-level skills. D The workers’ wages are the largest cost of the industry.

1 marks

Answer: A

This question in 0455/12 Feb/March 2021

7 A tailor has four customers for her range of suits. The table shows the yearly demand for the suits she makes. demand for suits suit price customer R customer S customer T customer U ($) 800 4 1 2 2 900 4 0 1 2 1000 3 0 1 1 1100 2 0 0 1 Which price should be charged to maximise the tailor’s yearly revenue? A $800 B $900 C $1000 D $1100

1 marks

Answer: A

This question in 0455/11 May/June 2021

5 What determines a consumer’s demand for a product? the consumer’s the consumer’s willingness to buy the price income the product of the product A J Jv J B J Jv x Cc x Jv J D J x J

1 marks

Answer: A

This question in 0455/12 May/June 2021

2 What could cause an increase in demand for a factor of production? A decrease in the efficiency of the factor of production B decrease in the price of an alternative factor of production C increase in the demand for the good or service produced D increase in the price of the factor of production

1 marks

Answer: C

This question in 0455/11 May/June 2022

6 What will cause the demand curve for a good to shift to the right? A a decrease in the disposable income of consumers B a decrease in the price of a complement good C a decrease in the price of a substitute good D a decrease in the price of the good

1 marks

Answer: B

This question in 0455/12 May/June 2022

8 The table shows the demand and supply schedules for rice. The current price is $2.00 per kilo. quantity demanded quantity supplied price per kilo $ (million tonnes) (million tonnes) 2.50 5 30 2.00 10 25 1.50 20 20 1.00 30 15 0.50 40 10 What will happen if the price is reduced to $1.00 per kilo? A The demand schedule will shift to the left. B The market will move from shortage to surplus. C The market will move from surplus to shortage. D The supply schedule will shift to the right.

1 marks

Answer: C

This question in 0455/12 May/June 2022

5 Workers are awarded a pay rise but do not increase their productivity. Workers do not buy the product that they produce. How would this change be shown on a demand and supply diagram for the product? A The demand curve will shift to the left. B The demand curve will shift to the right. C The supply curve will shift to the left. D The supply curve will shift to the right.

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2022

5 The diagrams show the demand curves for the only two buyers in a market. price price O O quantity quantity What will be the shape of the market demand curve for the good? A B price price O O quantity quantity C D price price O O quantity quantity

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2022

5 What will result in a movement along the demand curve for a product? A a change in tastes B an increase in income C a rise in the price of the product D a successful advertising campaign for the product

1 marks

Answer: C

This question in 0455/12 Feb/March 2023

5 The diagram shows the effect of a decrease in price on the demand for a product. D price P1 P2 D O Q1 Q2 quantity demanded What does the arrow on the diagram illustrate? A contraction in demand B decrease in demand C extension in demand D increase in demand

1 marks

Answer: C

This question in 0455/11 May/June 2023

5 Good X is demanded in two areas, Y and Z. The table shows the amount of X demanded in these areas at different prices. price of quantity demanded good X per month (US$) area Y area Z 5 1000 200 10 800 150 15 600 100 20 400 50 25 200 0 What can be concluded from the table? A Consumers in area Y are more willing and able than consumers in area Z to buy good X. B Consumers in area Y are richer than consumers in area Z. C Consumers in area Y want the good more than consumers in area Z. D There are more consumers living in area Y than in area Z.

1 marks

Answer: A

This question in 0455/12 May/June 2023

9 The price of a good increases. What could cause this? A The cost of raw materials falls. B The incomes of consumers rise. C The price of a complement rises. D The price of a substitute falls.

1 marks

Answer: B

This question in 0455/12 May/June 2023

5 Public transport and cars are substitute goods. The price of public transport rises. What will happen to the demand for cars? A It will contract. B It will extend. C It will decrease. D It will increase.

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2023

8 The diagram shows a demand curve. price P2 Y X P1 D O Q2 Q1 quantity What does the movement from X to Y show? A a decrease in quantity demanded due to an increase in price B a decrease in quantity demanded due to changes in the conditions of demand C an increase in quantity demanded due to changes in the conditions of demand D an increase in quantity demanded due to an increase in price

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2023

4 The diagram shows points on two demand curves. price J K L M D1 D2 O quantity Which movement between points shows a contraction in demand? A K to J B K to M C L to K D M to L

1 marks

Answer: A

This question in 0455/12 Feb/March 2024

5 What is likely to cause an extension in demand for a firm’s fruit drink? A a period of hot weather B a reduction in the cost of producing the drink C a rival firm leaving the market D a successful advertising campaign by the firm

1 marks

Answer: B

This question in 0455/12 May/June 2024

6 Supermarkets sell petrol (gas) outside their stores. They reduce the price of petrol below other suppliers to attract more customers to buy goods in the store when they buy more petrol. If this were successful, how might it be shown on demand and supply diagrams? demand and supply diagram for the demand and supply diagram for petrol store’s goods A shift of the demand curve to the left shift of the supply curve to the left B shift of the demand curve to the right shift of the demand curve to the left C shift of the supply curve to the left shift of the supply curve to the right D shift of the supply curve to the right shift of the demand curve to the right

1 marks

Answer: D

This question in 0455/12 May/June 2024

29 The diagram shows the market for the Indian rupee in US$. price of S1 rupees (in $) D2 D1 O quantity of rupees What will cause the demand curve for rupees to shift from D1 to D2? A a fall in Indian exports to the US B a fall in the US inflation rate C a rise in foreign direct investment into India D a rise in interest rates in the US

1 marks

Answer: C

This question in 0455/13 May/June 2024

6 The diagram shows the demand for and supply of a product. The original equilibrium is at X. Which point indicates the new equilibrium position if there is an increase in the price of a close substitute for the product while other things remain the same? S3 price S1 B S2 C X A D D2 D1 D3 O quantity

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2024

5 The diagram shows a change in demand for coffee. price of coffee D1 D2 O quantity of coffee demanded per month What would cause the demand for coffee to change from D1 to D2? A a good coffee harvest B a rise in the price of substitute drinks C a rise in the wages of coffee workers D a successful advertising campaign for tea

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2024

11 How would a change in the demand for labour affect the labour market in an occupation? change in demand change in the change in quantity for labour equilibrium wage of labour supplied A decrease decrease extend B decrease increase contract C increase decrease contract D increase increase extend

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2024

4 The world price of cocoa has been falling while the prices of products made from cocoa have been rising. Which combination might explain this? advertising expenditure market for cocoa on products made from cocoa A excess demand decrease B excess supply decrease C excess demand increase D excess supply increase

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2024

6 The diagrams show the demand curves for the only two buyers in a market. price price O O quantity quantity What will be the shape of the market demand curve for the good? A B price price O O quantity quantity C D price price O O quantity quantity

1 marks

Answer: C

This question in 0455/12 May/June 2025

6 The diagram shows the market for cherries in Chile. price S P2 E2 P1 E1 D2 D1 O Q1 Q2 quantity What would cause a change in the market equilibrium from E1 to E2? A a newspaper article stating cherries are good for your health B a poor harvest for cherries due to bad weather C an increase in the imports of cherries from Israel D the government reducing the sales tax on cherries

1 marks

Answer: A

This question in 0455/13 May/June 2025

5 What determines a consumer’s demand for a product? the consumer’s income the consumer’s willingness to buy the product the price of the product key /=yes X=n0o

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2025

6 The diagram shows the demand curve for a good. price D O quantity What can be concluded about a single downward-sloping demand curve? A consumers increase demand when their incomes rise B consumers plan to buy less when prices rise C firms produce less as prices rise D firms sell more when prices rise

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2025