CAIE IGCSE Economics 2.4.3 Market disequilibrium
Compare quantity demanded with quantity supplied at a stated price to calculate a shortage or surplus and explain the price pressure that restores equilibrium.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- Calculate excess demand when quantity demanded exceeds quantity supplied at the stated price.
- Calculate excess supply when quantity supplied exceeds quantity demanded at the stated price.
- Explain why shortages raise price and surpluses lower price until the market clears.
2.4.3—Market disequilibrium question 1
[Maximum number: 2]
Washington State is the state which grows the most apples in the US. In 2019, apple production increased in Washington State but the market was in disequilibrium. Apple farming is a labour
intensive industry because apples are picked by hand. The market for apples in the US is competitive.
Define market disequilibrium.
Define market disequilibrium.
A market where demand and supply are not equal / balanced / matched (2).
A market where there is a surplus / excess supply (1) or a shortage / excess demand (1).
2
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