ConceptConceptDocsDocuments

CAIE A-Level Economics 2.1 Demand and Supply Curves Question Bank

Practise defining effective demand, aggregating individual curves and distinguishing movements from shifts when income, related prices, costs, technology or policy changes.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • distinguish effective demand from desire by requiring willingness and ability to pay
  • aggregate quantities horizontally at each price to construct market demand or supply
  • separate a movement caused by own price from a curve shift caused by a non-price determinant

Covered syllabus points

2.1.1—Effective demand2.1.2—Individual and market demand/supply2.1.3—Demand determinants2.1.4—Supply determinants2.1.5—Demand curve shifts2.1.6—Supply curve shifts2.1.7—Shifts vs movements

2.1 Demand and supply curves question 1

[Maximum number: 1]

What ensures that demand for a product is effective?

A

The consumer must have the ability to buy the product.

B

The consumer must purchase in the private sector of the economy.

C

The consumer must receive consumer surplus.

D

The consumer must want to buy the product.

2.1 Demand and supply curves question 2

[Maximum number: 1]

The diagram shows a market supply curve (S).

Figure for Question 2.1 Demand and supply curves question 2 — CAIE A-Level Economics AS

What is measured on the X -axis and the Y -axis?

X-axis

Y-axis

quantity

income

quantity

price

price

income

income

quantity

2.1 Demand and supply curves question 3

[Maximum number: 6]

The Fiji economy: a positive outlook

Fiji is a small island country in the Pacific with a population of 860000 . In 2014 its economy was reported to be continuing to grow steadily. It remained on course for a fifth consecutive year of expansion, boosted by high tourist arrivals and visible export earnings, particularly from sugar. The factors that were expected to restrict growth in 2015 included ongoing dry weather conditions causing lower output of agricultural goods, with the exception of sugar.

Table 1: Selected economic indicators for Fiji

Table 1: Selected economic indicators for Fiji

Consumption remained strong in the first five months of 2014, and imports of consumer goods, mainly vehicles, rose by 15.6%. Personal remittances increased, boosting consumption expenditure.

The tourism sector - Fiji's main source of foreign exchange - continued to perform strongly. Visitor arrivals increased by 4.0% year-on-year, with 4.6% more visitors from Australia and 11.6% more from New Zealand, but there was a significant fall in visitor arrivals from Japan.

Sugar production increased, aided by government investments in new technology that improved efficiency of production and reduced price.

Despite higher growth, inflationary pressures were eased by declining international commodity prices. However, annual average inflation in 2014 was not expected to fall below 3.0%, as economic activity was expected to revive. In addition, continuing dry weather was affecting the food supply.

Despite the positive growth outlook, increased investment is needed to improve productivity and address supply-side capacity constraints.

Discuss any economic factors that might help to explain the changes in visitor arrivals to Fiji from Australia and Japan.

All question bank results loaded