Practise market-system questions on scarcity, consumer choices, demand and supply, elasticity, mixed economies and externalities using diagrams and data.
State the formula for price elasticity of supply (PES).
Describe one reason why infinite wants lead to scarcity.
Figure 3 shows the demand for cocoa beans during 2019.
Demand for cocoa beans in 2019 Price
of cocoa beans
Explain one effect on the demand curve for cocoa beans following a change in the price.
Which one of the following does a point on a production possibility curve (PPC) represent?
Where capital goods should be produced
How the production of all goods can be increased
Government revenue from production
A given amount of resources being fully employed
Andreas is a plumber. Unlike his competitors, he is prepared to work at the weekend. However, he charges customers 50\% more for his services at the weekend.
Which one of the following describes this economic assumption?
Businesses aim to maximise their profit
Producers may complete charitable work
Consumers sometimes copy others' behaviour
Governments try to increase the number of days worked
Alfie provides a dog-walking service to dog owners in his local area. After a successful first year he increased prices by 1.5% and quantity demanded fell by 1.1%.
Calculate, to two decimal places, the price elasticity of demand (PED) for Alfie's dog-walking service. You are advised to show your working.
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
What is meant by the term demand?
State the formula for social costs.
Using the diagram below, draw the effects on the market for crops after a hurricane destroys farm land. Label the new curve, new equilibrium price and new equilibrium quantity.
Figure 2
Concert tickets to see the most popular music artists can sell for very high prices.
Explain one reason why the demand for these tickets might be price inelastic.
Which one of the following values shows perfectly price elastic demand?
-1
-0.5
Zero
Infinity
What is meant by the term mixed economy?
Calculate, to two decimal places, the income elasticity of demand (YED) for a good if income increases by 7% and quantity demanded increases by 11%. You are advised to show your working.
Figure 1 shows the market for solar panels.
Using the diagram below, draw the likely effects on the market for solar panels if the government removes an indirect tax on them. Label the new curve, the new equilibrium price and the new equilibrium quantity.
Figure 1
Casper has decided to purchase a new television.
Explain one possible opportunity cost for Casper of this decision.
