A-Level - Demand & Supply

An individual demand curve tells us how much:

• a firm sells at various prices.

• an individual will buy at various prices.

• a group of firms will sell at various prices.

• all people will buy at various prices.

A market demand curve tells us how much:

• a firm sells at various prices.

• an individual will buy at various prices.

• a group of firms will sell at various prices.

• all people will buy at various prices.

An individual supply curve tells us how much:

• a firm sells at various prices.

• an individual will buy at various prices.

• a group of firms will sell at various prices.

• all people will buy at various prices.

A market supply curve tells us how much:

• a firm sells at various prices.

• an individual will buy at various prices.

• a group of firms will sell at various prices.

• all people will buy at various prices.

The diagram shows a demand curve for a normal good.

Which of these statements correctly describes what the demand curve shows?

• The quantity changes in proportion to a change in price.

• A fall in price leads to a fall in quantity demanded.

• As price changes, a greater or smaller quantity is demanded.

• As demand increases, so does price.

Suppose there is a large increase in the price of a bottle of iced tea. How is this likely to affect the demand curve for bottles of cola?

• There will be an extension of demand along the demand curve for cola.

• The demand curve for cola will remain unchanged.

• The demand curve for cola will shift to the left.

• The demand curve for cola will shift to the right.

Which of the following is likely to shift an individual’s demand curve for a Range Rover Evoque luxury SUV to the left?

• An increase in price of a substitute SUV.

• A decrease in price of the Range Rover Evoque SUV.

• A decrease in an individual’s income.

• A five-star review of the Range Rover Evoque in a motoring magazine.

Which of these would cause a shift to the left of the market supply curve for Range Rover Evoque vehicles?

• An increase in the price of the Range Rover Evoque.

• An increase in the wages of production workers.

• A reduction in the taxation on Range Rover Evoques.

• An improvement in output per worker.

The government provides funds for a subsidy on the price of cooking oil. How will this affect the market supply curve of cooking oil?

• There will be a contraction of supply along the market supply curve.

• There will be an extension of supply along the market supply curve.

• The market supply curve for cooking oil shifts to the left.

• The market supply curve for cooking oil shifts to the right.

The government introduces a new indirect tax on carbonated soft drink.

How will this affect the domestic market supply curve for carbonated soft drinks?

• There will be a contraction of supply along the domestic market supply curve.

• There will be an expansion of supply along the domestic market supply curve.

• The domestic market supply curve shifts to the left.

• The domestic market supply curve shifts to the right.