Markets 1 S03 and S04

The diagram shows the demand for chocolate.

What could cause the movement from point X to point Y?

• a change in tastes

• a fall in the price of chocolate

• an increase in income

• a successful advertising campaign for chocolate

The diagram shows the market for white sugar which is in equilibrium at X.

A report is published stating that brown sugar is healthier to eat than white sugar.

What will be the new equilibrium position for white sugar?

• A

• B

• C

• D

In the south of Spain, a man sells oranges from his garden to passers-by. The demand curve (DD) for oranges is shown in the diagram.

What price per orange should he charge to maximise his revenue?

• 2 euros

• 4 euros

• 6 euros

• 8 euros

In many countries, extra staff are employed by the postal service and additional collections of post are made to clear the large amount of mail before holiday periods.

What happens to the demand and supply curves for postal services during these periods?

• demand curve moves to left

  supply curve moves to left

• demand curve moves to left

  supply curve stays the same

• demand curve moves to right

  supply curve moves to right

• demand curve moves to right

  supply curve stays the same

The graph shows the market for rice. It was in equilibrium at X. Later, there is a very good harvest of rice.

What is the new equilibrium point?

• A

• B

• C

• D

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 commodity while other things remain the same?

• A

• B

• C

• D

The diagram shows the demand for and supply of a firm's product. The original equilibrium is at X.

The firm pays for a successful advertising campaign.

What is the new equilibrium?

• A

• B

• C

• D

A supply curve shows the relationship between the quantity supplied and

• company profits.

• the demand for the product.

• the output of the product.

• the price of the product.

What is likely to increase the supply of fish brought to market?

• a decrease in the number of fishing vessels operating

• the imposition of a quota on the import of fish

• the imposition of a sales tax on fish

• a decrease in the cost of building fishing vessels

The graph shows the market for unskilled workers in a city. The original equilibrium is at X.

What would be the new equilibrium if there was a migration of workers to the city?

• A

• B

• C

• D