Lesson 2 - IGCSE Economics Year 10 archive

Define the term excess supply. (1 mark)

Answer explanation

Where supply is greater than demand

Using the diagram, draw the likely effects on the market for mangoes after a study shows that eating them leads to an improvement in health. Label the new curve, the new equilibrium price, and the new equilibrium quantity. (3 marks)

Answer explanation

Explain one effect on the supply of rice following a change in its equilibrium price. (3 marks)

Answer explanation

Calculate the excess supply of meals if the quantity supplied during these three days totalled 261. You are advised to show your working. (2 marks)

Answer explanation

Using the diagram below, draw the likely effects on the market for apples following an increase in the advertising of apples. Label the new curve, the new equilibrium price and the new equilibrium quantity. (3 marks)

Answer explanation

Which one of the following would occur when there are unsold goods in

a market? (1 mark)

• Excess demand

• Excess supply

• Higher prices

• Increased productivity

Calculate the excess demand for tickets if the quantity supplied for all three events totals 60,000. You are advised to show your working. (2 marks)

Answer explanation

Which one of the following diagrams shows excess demand? (1 mark)

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Using the diagram below, draw the likely effects on the market after a popular celebrity was seen wearing trainers. Label the new curve, the new equilibrium price and the new equilibrium quantity. (3 marks)

Answer explanation

Using the diagram below, draw a price elastic demand (PED) curve. Label the curve and show the impact on both axes from a change in price. (3 marks)

Answer explanation