Edexcel IGCSE Economics 1.1.3.h market diagrams

Practise market-diagram questions by shifting the correct curve, labelling new equilibrium and showing shortages or surpluses.

Exam points

Draw the correct demand or supply shift from a real-world market change.
Label the new equilibrium price and quantity after a subsidy, tax or demand shock.
Interpret a diagram showing excess demand or excess supply at a given price.

[Maximum number: 3]

Using the diagram below, draw the likely effects on the market for cars of the introduction of more effective technology in production. Label the new curve, the new equilibrium price and the new equilibrium quantity.

Figure 1

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1.1.3.h Market equilibrium, excess demand and excess supply diagrams question 1