GCSE Economics 2.3 Past Exam Questions

Which of the diagrams shows a supply curve with a unitary elasticity of supply?

• W

• X

• Y

• Z

The market supply curve for goods and services normally slopes upwards. Which of the following best explains the reason for this?

• Average costs of production fall as output increases

• Higher prices attract new firms to the market

• Opportunity costs of not producing rise as output increases

• Production costs fall as output increases so profits rise

Supply means the amount producers are willing and able to provide to the market at a given

• level of consumer income

• price

• quantity demanded

• request by the government

An upward sloping supply curve is a straight line starting at the origin. This supply curve is

• price elastic

• price elastic to begin with by becomes price inelastic at higher levels of output

• price inelastic

• unitary price elastic

Which one of the following will lead to a shift in the supply curve to the left?

• A fall in demand for the good

• A fall in the price of the good

• A subsidy paid to producers

• A tax placed on the production of the good

Which of the following will cause the supply curve of carrots to shift to the left?

• A decrease in income tax

• A decrease in the costs of the machinery used to farm carrots

• An increase in the demand for carrots

• An increase in the wages of carrot farmers

If supply is price inelastic, the value of price elasticity of supply will be

• greater than one

• greater than the price elasticity of demand

• infinity

• less than one

The diagram shows three supply curves. Which of them has a unitary elasticity?

• S1

• S2

• S2 and S3

• S1, S2 and S3

Price elasticity of supply measures the

• percentage change in price relative to the percentage change in quantity supplied

• percentage change in quantity supplied relative to a change in income

• ratio of the quantity supplied to the price of the factor inputs

• responsiveness of quantity supplied to a change in the price of the product