Price changes — Paper 1 · IGCSE Economics 0455

10 The diagram shows the market for bicycles. The demand for bicycles increases and at the same time manufacturers are able to cut costs through new production methods. S1 S2 price D2 D1 O quantity According to the diagram, what would be the result of these changes? price quantity A increase increase B increase unchanged C unchanged increase D unchanged decrease

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2004

12 The diagram shows the demand and supply curves for digital cameras. The original equilibrium point is X. What will be the new equilibrium point if these cameras become more fashionable and the rate of sales tax rises? supply B A X C price D demand O quantity

1 marks

Answer: B

This question in 0455/11 May/June 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

13 What is likely to reduce the price of Air Namibia’s flights? A increased competition from new airline companies B increased demand for flights C increased oil prices D increased wages for airline staff

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2006

12 In many countries, the price of personal computers has fallen while the quantity sold has risen. What is the most likely reason for these changes? A Advertising campaigns for computers increased. B Computer production technology improved. C Computer software became cheaper. D Real incomes rose.

1 marks

Answer: B

This question in 0455/11 May/June 2007

14 The diagram shows the demand and supply of places in independent (private) schools which charge fees. The equilibrium position is X. The costs of independent (private) schools rise. Also a report is issued which states that Government schools achieve very good examination results. What is likely to be the new equilibrium position? C B price A X D O quantity

1 marks

Answer: A

This question in 0455/11 May/June 2007

10 The graph shows changes in house prices in a developed country. 10 % change in 5 house prices 0 February March April May June July 2002 What might have caused these changes in prices? A an increase in government subsidies to house builders B an increase in income C an increase in the supply of houses D an increase in unemployment

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2007

14 X is the equilibrium point for a company that sells advertising space. During the year, the demand for advertising decreased and the company’s labour cost increased. What would be the new equilibrium? D price of X C advertising space B A O quantity of advertising space

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2007

11 The diagram shows the market for a product. The equilibrium is at X. S Y X price D O quantity Which combination of demand and supply changes would result in a new equilibrium in the area marked Y? demand change supply change A decrease decrease B decrease increase C increase decrease D increase increase

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2008

14 The diamond industry decides to increase production. Which diagram best shows the effect on price and quantity sold? A B S0 S1 S1 S0 price price P0 P1 P1 P0 D0 D0 Q0 Q1 quantity Q1 Q0 quantity C D S S price price P0 P1 P1 P0 D0 D1 D1 D0 Q1 Q0 quantity Q0 Q1 quantity

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2008

6 The market for a good was in equilibrium. A change occurred which resulted in a new equilibrium with a higher price for the good and a lower quantity traded. What change would have caused this? A The demand curve moved to the left. B The demand curve moved to the right. C The supply curve moved to the left. D The supply curve moved to the right.

1 marks

Answer: C

This question in 0455/11 May/June 2009

29 A large amount of the agricultural products in a country were damaged by floods. What is likely to have happened to the price of agricultural products and the volume of imports of agricultural products? price of products volume of imports A fall fall B fall rise C rise fall D rise rise

1 marks

Answer: D

This question in 0455/11 May/June 2009

6 The diagram shows an initial equilibrium point (X) in a market and a new equilibrium point (Y). Y X price O quantity Which combination of changes in demand and supply could have caused the movement from X to Y? demand supply A decrease decrease B decrease increase C increase decrease D increase increase

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2009

5 The diagram shows the market for fresh fish in the Caribbean with equilibrium point X. New, more efficient boats with lower running costs are then used. Which point represents the new equilibrium? S3 S1 B S2 A price X C D D2 D1 O quantity

1 marks

Answer: D

This question in 0455/11 May/June 2010

6 The diagram shows the market for fresh fish in the Caribbean with equilibrium point X. New, more efficient boats with lower running costs are then used. Which point represents the new equilibrium? S3 S1 B S2 A price X C D D2 D1 O quantity

1 marks

Answer: D

This question in 0455/12 May/June 2010

6 The table shows the changes in two influences on the demand for and supply of televisions. If these two changes occurred at the same time, in which case is it impossible for the price of televisions to rise? consumers’ incomes costs of production A fall fall B fall rise C rise fall D rise rise

1 marks

Answer: A

This question in 0455/11 May/June 2011

5 The table shows the changes in two influences on the demand for and supply of televisions. If these two changes occurred at the same time, in which case is it impossible for the price of televisions to rise? consumers’ incomes costs of production A fall fall B fall rise C rise fall D rise rise

1 marks

Answer: A

This question in 0455/12 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 0455/12 May/June 2011

5 The table shows the changes in two influences on the demand for and supply of televisions. If these two changes occurred at the same time, in which case is it impossible for the price of televisions to rise? consumers’ incomes costs of production A fall fall B fall rise C rise fall D rise rise

1 marks

Answer: A

This question in 0455/13 May/June 2011

5 Wet weather in 2009 led to a fall in the sales of summer clothes. To support businesses the government reduced the sales tax (VAT). How would these events be shown on a demand and supply diagram for summer clothes? demand curve supply curve A move to the left move to the right B move to the left no change C move to the right move to the left D no change move to the right

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2011

6 Drought in African countries often results in poor harvests. Other countries then help by sending quantities of food. What are the likely results of these events for the price of food in the drought-affected countries? A It will fall and then rise. B It will rise and continue to rise. C It will rise and remain at this higher level. D It will rise and then fall.

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2011

6 Wet weather in 2009 led to a fall in the sales of summer clothes. To support businesses the government reduced the sales tax (VAT). How would these events be shown on a demand and supply diagram for summer clothes? demand curve supply curve A move to the left move to the right B move to the left no change C move to the right move to the left D no change move to the right

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2011

7 Wet weather in 2009 led to a fall in the sales of summer clothes. To support businesses the government reduced the sales tax (VAT). How would these events be shown on a demand and supply diagram for summer clothes? demand curve supply curve A move to the left move to the right B move to the left no change C move to the right move to the left D no change move to the right

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2011

8 Drought in African countries often results in poor harvests. Other countries then help by sending quantities of food. What are the likely results of these events for the price of food in the drought-affected countries? A It will fall and then rise. B It will rise and continue to rise. C It will rise and remain at this higher level. D It will rise and then fall.

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2011

9 What changes would move the equilibrium in the diagram from point X to a new point within area Z? S Z X price D O quantity A a decrease in demand with a decrease in supply B a decrease in demand with an increase in supply C an increase in demand with a decrease in supply D an increase in demand with an increase in supply

1 marks

Answer: C

This question in 0455/11 May/June 2012

9 What changes would move the equilibrium in the diagram from point X to a new point within area Z? S Z X price D O quantity A a decrease in demand with a decrease in supply B a decrease in demand with an increase in supply C an increase in demand with a decrease in supply D an increase in demand with an increase in supply

1 marks

Answer: C

This question in 0455/12 May/June 2012

9 What changes would move the equilibrium in the diagram from point X to a new point within area Z? S Z X price D O quantity A a decrease in demand with a decrease in supply B a decrease in demand with an increase in supply C an increase in demand with a decrease in supply D an increase in demand with an increase in supply

1 marks

Answer: C

This question in 0455/13 May/June 2012

17 In 2010, floods caused severe damage to wheat production. How would this be shown on a market demand and supply diagram for wheat? supply curve demand curve A no change shift to the right B shift to the left no change C shift to the left shift to the left D shift to the right shift to the left

1 marks

Answer: B

This question in 0455/11 Oct/Nov 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

9 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 0455/12 Oct/Nov 2012

9 The market for a normal good is in equilibrium at point X. Consumers’ incomes rise and the government gives a subsidy to the producers of the good. In which area of the diagram will the new equilibrium be? supply A price D X B C demand O quantity

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2012

6 Maize and fuel are used in the production of Mexican tortillas. In 2010 Mexico produced a record maize crop but in 2011 rises in the price of fuel increased costs for tortilla makers. What is likely to have happened to the price of tortillas in 2010 and 2011? price in 2010 price in 2011 A decreased decreased B decreased increased C increased decreased D increased increased

1 marks

Answer: B

This question in 0455/11 May/June 2013

6 Many countries buy oil from Saudi Arabia. Which change is most likely to lead to a fall in the price of a barrel of oil? A an increase in demand of 10% with no change in supply B an increase in demand of 10% with an increase in supply of 10% C no change in demand with a 10% decrease in supply D no change in demand with a 10% increase in supply

1 marks

Answer: D

This question in 0455/12 May/June 2013

15 Maize and fuel are used in the production of Mexican tortillas. In 2010 Mexico produced a record maize crop but in 2011 rises in the price of fuel increased costs for tortilla makers. What is likely to have happened to the price of tortillas in 2010 and 2011? price in 2010 price in 2011 A decreased decreased B decreased increased C increased decreased D increased increased

1 marks

Answer: B

This question in 0455/13 May/June 2013

14 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 0455/11 Oct/Nov 2013

30 Countries in Europe were in a recession in 2012. Usually a recession would mean oil prices fall. In fact in 2012, oil prices rose. Which international events might have explained these changes? possible causes of an oil possible causes of an oil price fall in the recession price rise in 2012 A European industrial China increased production declined its car production B India invested huge Japan’s economy amounts in road building had negative growth C Middle East conflicts made Saudi Arabia increased oil supplies uncertain oil production D new oil exploration in demand for alternative Poland was successful fuels increased

1 marks

Answer: A

This question in 0455/11 May/June 2014

5 The diagram shows the market for refined oil with equilibrium of X. What will be the new equilibrium when a major oil refinery shuts down for repair work? S2 D2 S1 D1 A B S3 D3 X price C D O quantity

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2014

7 When personal computers (PCs) were first sold in the 1970s, prices were much higher than they are today. What is the most likely explanation? A Both quality and performance of PCs have improved. B Demand has increased due to advertising. C Improvements in technology have led to lower supply costs. D Production requires more spending on research.

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2014

6 Newspapers recently reported there had been a decrease in the demand for beef and that its price per kilogram had increased. From the initial equilibrium point X, which point in the diagram illustrates the new market equilibrium? S2 B A S1 price S3 X C D D2 D1 D3 O quantity

1 marks

Answer: A

This question in 0455/11 May/June 2015

7 The diagram shows the market for fresh fish in the Caribbean with equilibrium point X. A new type of fishing boat increases production, which reduces costs. Which point represents the new equilibrium? S3 S1 S2 B A price X C D D2 D1 O quantity

1 marks

Answer: D

This question in 0455/11 May/June 2015

7 The diagram shows the market for fresh fish in the Caribbean with initial equilibrium point X. A new type of fishing boat increases production, which reduces costs. Which point represents the new equilibrium? S3 S1 S2 B A price X C D D2 D1 O quantity

1 marks

Answer: D

This question in 0455/12 May/June 2015

6 In August 2013, a lengthy strike in north-east India, where the finest and most expensive Darjeeling tea is grown, shut down the tea industry at harvest time. What is the likely outcome of such a situation on a demand and supply diagram for Darjeeling tea? A The price will rise because demand will switch to other teas. B The price will rise because the strike will cause a movement down the supply curve. C The price will rise because the supply curve will move to the left. D The price will rise because there will be a fall in demand for the remaining Darjeeling tea.

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2015

7 The diagram shows the market for rice. S2 S1 P2 price P1 D O Q2 Q1 quantity What would have caused the equilibrium price to rise from OP1 to OP2? A a government subsidy to rice farmers B a successful advertising campaign for rice C improved rice farming methods D poor weather conditions

1 marks

Answer: D

This question in 0455/11 May/June 2016

15 The diagram shows the demand and supply of places in independent (private) schools which charge fees. The equilibrium position is X. The costs of independent (private) schools rise. Also a report is issued which states that Government schools achieve very good examination results. What is likely to be the new equilibrium position? C B price A X D O quantity

1 marks

Answer: A

This question in 0455/11 May/June 2016

7 The diagram shows the price of a product during year 1 and year 2. price ($) O year 1 year 2 Which changes in demand and supply are consistent with the price behaviour in year 2? demand supply A falls by 5% falls by 10% B falls by 10% falls by 5% C unchanged falls by 10% D rises by 15% falls by 5%

1 marks

Answer: B

This question in 0455/12 May/June 2016

7 The diagram shows demand and supply curves for a product. Initially the market is in equilibrium at point X. What would be the new equilibrium point if the costs of production fell and a rumour circulated that the product could become unsafe in extreme weather conditions? D A X C price B O quantity

1 marks

Answer: B

This question in 0455/13 May/June 2016

4 The market for a good was in equilibrium. A change occurred which resulted in a new equilibrium with a higher price for the good and a lower quantity traded. What change would have caused this? A the demand curve moved to the left B the demand curve moved to the right C the supply curve moved to the left D the supply curve moved to the right

1 marks

This question in 0455/12 Oct/Nov 2016

4 The market for a good was in equilibrium. A change occurred which resulted in a new equilibrium with a higher price for the good and a lower quantity traded. What change would have caused this? A the demand curve moved to the left B the demand curve moved to the right C the supply curve moved to the left D the supply curve moved to the right

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2016

18 A government taxes farmers $12 per kilo when they supply food on the open market where X is the original equilibrium position. The effect is illustrated in the diagram below. 50 S4 S3 S1 S2 40 X 30 price ($ per kilo) 20 D1 10 0 10 20 30 40 50 60 quantity supplied (000 kilos) What will be the new equilibrium price and quantity supplied as a result of the tax? equilibrium price quantity supplied ($ per kilo) (000 kilos) A 20 40 B 25 50 C 35 30 D 40 20

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2016

5 What will be the impact on the market for oil of the closure of the world’s largest oil field for maintenance work? A a movement down the supply curve B a movement up the demand curve C a shift of the demand curve to the left D a shift of the supply curve to the right

1 marks

Answer: B

This question in 0455/12 Feb/March 2017

30 The diagram shows the market for the Indian rupee priced in US dollars. The equilibrium point is at X. If more Americans take holidays in India and fewer Indians buy American exports, in which sector of the diagram will the new equilibrium point for price and quantity of the Indian rupee be? S price of rupee (US$) A D B X C D O quantity of rupees

1 marks

Answer: A

This question in 0455/12 Feb/March 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

7 Between 2005 and 2015 the number of late-night music clubs in the UK fell from 3144 to 1733. The causes were said to be the increase in the cost to clubs of planning regulations and the increase in alternative ways of meeting people on social media. How would the effect of these causes be shown on a demand and supply diagram for entrance to late-night music clubs? increase in planning regulations dating websites A movement down shift of the supply curve demand curve to left B movement up movement up the supply curve the demand curve C shift of shift of supply curve to left demand curve to left D shift of shift of supply curve to right demand curve to right

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2017

7 It was reported that the supply of oil would be affected by the discovery of new oil fields and demand would be affected by rapid global economic growth. If point X is the initial equilibrium point, which point could represent the new equilibrium? price S2 B S1 A S3 X C D D3 D1 D2 O quantity

1 marks

Answer: C

This question in 0455/12 Oct/Nov 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

5 The diagram shows the demand curve D1 and supply curve S1 for healthcare in an economy. The original equilibrium is X. What will be the new equilibrium if the economy experiences sustained economic growth and the government reduces planning controls on the building of new hospitals? S2 price S1 S3 A D B X C D2 D1 D3 O quantity

1 marks

Answer: B

This question in 0455/13 May/June 2018

5 The diagram shows the equilibrium market price PE and quantity QE for rice in a country. price S P1 PE D O QE quantity Which government action could cause the market price for rice to become P1? A encouraging the export of rice from the country B imposing a maximum price below the market price for rice C providing a subsidy to farmers to produce more rice D reducing import tariffs on rice

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2018

5 The diagram shows the market for a firm making clothing with an initial equilibrium of X. What will be the new equilibrium if there is a successful advertising campaign by a rival firm and an increase in workers’ wages? S2 price S1 S3 B A C X D D3 D1 D2 O quantity

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2018

30 A large amount of the agricultural products in a country were damaged by floods. What is likely to have happened to the price of agricultural products and the volume of imports of agricultural products? price of products volume of imports A fall fall B fall rise C rise fall D rise rise

1 marks

Answer: D

This question in 0455/11 May/June 2019

6 The table shows the quantity demanded and supplied for a commodity at different prices. price quantity quantity ($) demanded supplied 10 100 800 9 210 700 8 400 600 7 500 500 6 600 400 What would happen to the equilibrium price if the quantity supplied increased by 200 units at each price? A It would decrease by $1. B It would decrease by $2. C It would increase by $1. D It would increase by $2.

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2019

6 There has been a movement upwards along the supply curve of a product. What is the most likely explanation for this? A Consumer incomes have fallen. B New technology has made the product cheaper to produce. C The government has imposed a tax on the product. D The price of a substitute has increased.

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2019

6 The diagram shows market demand and supply curves. S1 P2 price P1 P3 D1 O Q2 Q3 Q1 Q4 Q5 quantity To what extent is the market in disequilibrium at price P3? A OQ1 – OQ2 B OQ1 – OQ3 C OQ2 – OQ4 D OQ3 – OQ5

1 marks

Answer: D

This question in 0455/11 May/June 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

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

7 The diagram shows the market for oil. The original equilibrium is X. Oil producers discover a new source of oil while there is economic growth. What is the new equilibrium? price S2 B A S1 X S3 C D D2 D1 D3 O quantity

1 marks

Answer: C

This question in 0455/13 May/June 2021

7 An economy relies on potash to make fertiliser. A new deposit of potash is discovered. Which diagram shows this change in the market for potash? A B S1 S1 price price D2 D1 D1 D2 O O quantity quantity C D S2 S1 price price S1 S2 D1 D1 O O quantity quantity

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2021

8 The table shows the world output of iron ore and the average yearly price for four years. world output of iron ore average yearly price year (billion tonnes) ($ per tonne) year 1 2.86 128 year 2 2.98 135 year 3 2.22 97 year 4 2.28 95 What can be concluded about the relationship between world output of iron ore and the average yearly price over the four years? average world output yearly price A highest highest B highest lowest C lowest highest D lowest lowest

1 marks

Answer: A

This question in 0455/11 May/June 2022

17 A government levies a specific tax on the supply of cigarettes. At the same time it starts a campaign to explain the health risks of smoking cigarettes. Which diagram illustrates the effects on the demand and supply of cigarettes? A B price price S1 S2 S2 S1 D D O quantity O quantity C D price price S2 S1 S1 S2 D2 D1 D1 D2 O quantity O quantity

1 marks

Answer: C

This question in 0455/12 May/June 2022

6 The diagram shows the supply and demand for a product. S price $ 6 D 0 10 000 quantity (units) Suppliers have decided to produce 10 000 units and charge a price of $6. What is the result of this decision in the short run? A A stable equilibrium price will be achieved. B Suppliers will be left with unsold stock. C The equilibrium market price will increase. D There will be excess demand at the price of $6.

1 marks

Answer: B

This question in 0455/13 May/June 2022

6 The diagrams show changes in market conditions. Which diagram shows a shortage at price P? A B S S1 price price S2 P P D1 D2 D O Q1 Q2 O Q1 Q2 quantity quantity C D S1 S1 price price S2 S2 P P D D1 D2 O Q O Q1 Q2 quantity quantity

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2022

6 The shoppers in a country become worried about a sudden and dangerous rise in air pollution and so buy more food in case they have to stay at home. As the air pollution spreads, supermarket staff fall ill and the supermarkets struggle to keep their shelves full of food. X was the initial equilibrium in the market for food in supermarkets. What will be the new equilibrium as a result of the above situation? S3 S1 S2 price A of food D X B C D3 D1 D2 O quantity of food

1 marks

Answer: A

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

6 In a year when there were big increases in demand for new cars, many used cars also came onto the market. The diagrams show the demand for and the supply of new and used cars. The original equilibrium position was at E in each case. new cars used cars price S1 price S1 Y X S2 E E X D3 Y D2 D1 D1 D2 O quantity O quantity What will be the new equilibrium position in each market? new cars used cars A X X B X Y C Y X D Y Y

1 marks

Answer: D

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

9 What would bring about a movement upwards along the supply curve for rice? A a decrease in the productivity of farmworkers B a decrease in the profitability of rice production C an increase in consumers’ incomes D an increase in farmworkers’ wages

1 marks

Answer: C

This question in 0455/11 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

9 In a given year, the world output of coal was 3.94 billion metric tonnes at an average yearly price of $252 per metric tonne. Several years later, world output was 3.66 billion metric tonnes at an average yearly price of $120 per metric tonne. What might have caused such a fall in the price of coal? A almost half the world’s coal reserves were in just two countries B the exhaustion of coal seams throughout the world C the switch to renewable sources of energy D the use of coal as a raw material as well as a fuel

1 marks

Answer: C

This question in 0455/13 May/June 2023

5 In the United Kingdom (UK), the price of timber used in house building increased. This was because of a boom in the UK house building industry and a shortage of drivers to deliver the timber. What happened in the UK market for timber to cause this price increase? demand curve supply curve A shifted left shifted left B shifted left shifted right C shifted right shifted left D shifted right shifted right

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2023

9 Droughts in some countries caused the supply of wheat to fall. Wheat prices then rose providing an opportunity for wheat producers in other countries to increase supply. Why might the price of wheat continue to be high in the year following the drought? A Different weather conditions allowed a bumper harvest. B Suppliers unaffected by drought failed to increase output. C The government introduced a subsidy to wheat producers. D The wheat market returned to its original equilibrium.

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2023

13 Many small energy providers have closed down due to rising costs. What is the likely effect of this on the price of energy and choice of energy providers for consumers, assuming there is no government intervention? price of choice of energy energy providers A decreases decreases B decreases increases C increases decreases D increases increases

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2023

6 For health reasons, consumers decide that they want to eat more vegetables and less meat. What price signals would the market system send to reallocate resources so that consumers get what they want? price of price of vegetables meat A decrease decrease B decrease increase C increase decrease D increase increase

1 marks

Answer: C

This question in 0455/12 Feb/March 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

7 Which changes would move the equilibrium in the diagram from point X to point Z? S Z price X D O quantity A a decrease in demand with a decrease in supply B a decrease in demand with an increase in supply C an increase in demand with a decrease in supply D an increase in demand with an increase in supply

1 marks

Answer: C

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 diagram shows demand and supply curves for a good. The market is in equilibrium at point X. What would be the new equilibrium position if there were a successful advertising campaign for the good and an increase in the cost of raw materials? S2 S1 S3 price B A X C D D2 D1 D3 O quantity

1 marks

Answer: B

This question in 0455/12 Feb/March 2025

7 The diagram shows the market for ice cream and the effects of very hot weather. S1 price P2 P1 D1 D2 O quantity If prices had remained at P1 even during the hot weather, what was likely to have happened in the market for ice cream? A equilibrium B excess supply C rising profits D shortage

1 marks

Answer: D

This question in 0455/12 May/June 2025

5 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 curve 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 curve will shift to the right.

1 marks

Answer: C

This question in 0455/13 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

4 The price of petrol increases in a country with a market economic system. What is a consequence of this? A More cars are bought. B The costs of road transport increase. C The quantity of petrol supplied falls. D There is a shortage of petrol.

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2025

5 The diagram shows the supply and demand curves for a good. The initial market equilibrium is given at point E1. There is a change in the market that leads to a new equilibrium at E2. price supply E2 E1 Pe demand O Qe quantity What is the cause of the change in the market equilibrium? A a decrease in the price of a substitute good B a decrease in raw material prices C an increase in the price of a substitute good D an increase in raw material prices

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2025

5 The diagram shows the market for fresh fish in the Caribbean with equilibrium point X. A new type of fishing boat increases production, which reduces costs. Which point represents the new equilibrium? S3 price S1 S2 B A X C D D2 D1 O quantity

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2025

6 The table shows the market schedule for good X. quantity quantity price supplied demanded 10 400 100 9 300 200 8 200 300 7 100 400 If the quantity supplied increases by 50% at each price, what will the equilibrium price and quantity be? price quantity A 10 100 B 9 200 C 8 300 D 7 400

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2025