Edexcel IGCSE Economics 1.1.3.g equilibrium price and quantity
Practise equilibrium questions by locating the market-clearing price and explaining how demand and supply determine quantity.
- Syllabus
- First assessment 2019
- Course
- Economics 4EC1
Exam points
- Explain equilibrium as the price where quantity demanded equals quantity supplied.
- Use a demand and supply diagram to locate the market-clearing price and quantity.
1.1.3.g Equilibrium price and quantity and how they are determined question 1
[Maximum number: 3]
With reference to the information given in 'Beating the congestion in Dhaka', explain one reason why prices for journeys using an auto rickshaw might be higher outside the city centre.
AO2 3 marks
Award 1 mark for identifying a relevant reason for the difference in price
Award 1 mark for developing the reason
Award 1 mark for the response being in the context of transport in Dhaka
- One reason is that there are likely to be fewer vehicles competing outside the city centre (1) because most of the 17 million people live in the city centre (1) and so there is less potential business for the drivers (1)
Accept any other appropriate response
(3)
uestion
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Indicative content
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