CAIE A-Level Economics 2.4.1 Market equilibrium
Practise recognising equilibrium, shortages and surpluses from demand and supply data, diagrams and price adjustment scenarios.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- AS
Exam points
- distinguish equilibrium from disequilibrium using quantity demanded and supplied
- use tables or equations to identify shortages, surpluses and price movement
- interpret demand and supply diagrams showing excess demand or excess supply
2.4.1—Market equilibrium question 1
[Maximum number: 8]
Distinguish between the concepts of market equilibrium and disequilibrium and show what happens in a free market for a good when disequilibrium exists.
Market equilibrium means that there is no tendency for price and quantity to change. Dis equilibrium means that excess demand or excess supply exists and as a result price and quantity will change as a result of market forces.
For clear knowledge and understanding of the terms equilibrium and disequilibrium.
(up to 4 marks)
For knowledge and understanding of the meaning of equilibrium in a free market.
(up to 2 marks)
For knowledge and understanding of the meaning of disequilibrium in a free market.
(up to 2 marks)
If the candidate shows where equilibrium and/or disequilibrium occurs, but does not explain what this means.
For application showing how equilibrium is re-established in a free market when disequilibrium exists.
(up to 4 marks)
For showing how market forces operate to re-establish equilibrium when an excess demand exists.
(up to 3 marks)
For showing how market forces operate to re-establish equilibrium when an excess supply exists (up to 3 marks) (4 marks maximum)
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