Supply — Paper 1 · IGCSE Economics (9-1) 0987

6 The diagrams show the supply curve for an individual grower of tomatoes and for the total market supply of tomatoes. individual grower total market 3.0 3.0 price price per kg per kg ($) ($) 1.5 1.5 0.5 0.5 0 0 1000 3000 6000 100 000 300 000 600 000 quantity quantity (kilograms) (tonnes) What explains the similarity of the two curves? A As costs rise growers need to get a higher price to increase output. B At the lower prices each grower supplies more tomatoes. C The profitability per unit is the same for all growers irrespective of output. D Supply is not always influenced by price.

1 marks

Answer: A

This question in 0987/12 May/June 2020

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 0987/12 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 0987/11 May/June 2022

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 0987/11 May/June 2023

7 The diagram shows the supply curve for coffee. supply price P2 P1 O Q1 Q2 quantity The price of coffee increases from P1 to P2. How would this benefit firms in the coffee industry? A A higher price gives firms the ability to increase profits. B A higher price gives firms the incentive to reduce total fixed costs. C A higher price will encourage consumers to buy more coffee increasing total revenue. D A higher price will encourage less firms to enter the market to supply coffee.

1 marks

Answer: A

This question in 0987/12 May/June 2023

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 0987/12 May/June 2024

4 A period of bad weather leads to a failure of the rice crop. What is the effect on the market for rice? A a shortage of rice and a fall in its price B a shortage of rice and a rise in its price C a surplus of rice and a fall in its price D a surplus of rice and a rise in its price

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2024

6 The table shows the supply for a product at different prices. price supply ($) (units) 10 120 12 160 14 200 16 240 18 280 If the price changes from $12 to $14, what will be the change in supply? A Supply will contract by 40 units and there will be a movement down along the supply curve. B Supply will contract by 200 units and there will be an inward shift of the supply curve. C Supply will extend by 40 units and there will be a movement up along the supply curve. D Supply will extend by 200 units and there will be an outward shift of the supply curve.

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2024

6 The diagram shows demand and supply curves for a product at its equilibrium price P. S1 S price S2 P D2 D D1 O Q quantity How would the introduction of a subsidy be shown? A Demand would shift to D1. B Demand would shift to D2. C Supply would shift to S1. D Supply would shift to S2.

1 marks

Answer: D

This question in 0987/11 May/June 2025

12 A bus driver initially works longer hours if the wage rate increases. As his earnings increase, there reaches a point when he prefers more leisure than extra work. Which supply curve, S, represents this situation? A B C D S S wage wage wage wage rate S rate rate rate S O worker O worker O worker O worker hours hours hours hours

1 marks

Answer: C

This question in 0987/11 May/June 2025