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CAIE A-Level Economics AS 2.4.1 Market Equilibrium Questions

Practise identifying and calculating market equilibrium, explaining surplus and shortage disequilibrium, and describing how market forces adjust price and quantity.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Identify and calculate market equilibrium, explain surplus and shortage disequilibrium, and describe adjustment toward equilibrium.

CAIE A-Level Economics AS 2.4.1 Market Equilibrium Questions question 1

[Maximum number: 1]

The equation for the quantity demanded, QDQ_{D}, for a product is

QD=400−20PQ_{D}=400-20 P

where P= price in $. The quantity supplied, QS\mathrm{Q}_{\mathrm{S}}, is given by QS=100+40P\mathrm{Q}_{\mathrm{S}}=100+40 \mathrm{P}.
Which change will occur if the price rises from $ 5 to $ 6 ?

A

The market will move from equilibrium to shortage.

B

The market will move from equilibrium to surplus.

C

The market will move from shortage to surplus.

D

The market will move from surplus to shortage.

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