CAIE IGCSE Economics 2.2.2 Movements along a demand curve
Practise identifying extensions and contractions on demand curves, linking each movement to a price change and quantity demanded.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- label an extension as movement down a demand curve after a fall in price
- identify a contraction from points on a diagram after a rise in price
- distinguish price-caused movement from a shift due to demand conditions
2.2.2—Movements along a demand curve question 1
[Maximum number: 2]
In 2020, the price of gold fell in Vietnam. That year, Vietnam was one of Asia's best performing economies. Unlike some Asian economies, Vietnam did not experience a recession. Its total output, exports and imports all increased. Unemployment did increase from 2.0% to 2.3% but remained very low. One of the aims of fiscal policy can be to achieve full employment.
Identify how the effect of a fall in the price of gold would be shown on a demand curve for gold.
Identify how the effect of a fall in the price of gold would be shown on a demand curve for gold.
A movement down the demand curve (1) from left to right / extension (1).
A movement along the demand curve (1).
2
Accept, as an alternative, a diagram showing a movement down the demand curve.
Allow one mark for the idea that demand will rise.
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