CAIE A-Level Economics 2.1.5 Demand Curve Shifts

CAIE A-Level Economics 2.1.5 Demand Curve Shifts
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise choosing and explaining leftward or rightward demand shifts from changes in income, related-goods prices, tastes, quality or access and predicting the new market…

How this is tested

  • draw a parallel demand shift while holding the product's own price as the vertical variable
  • predict shift direction from income for normal or inferior goods and prices of substitutes or complements
  • combine the shifted demand curve with supply to identify the new equilibrium price and quantity

Question 7

[Maximum number: 1]

In the diagram, D1\mathrm{D}_{1} is the initial demand curve for student places at universities.

Figure for Question 7 — CAIE A-Level Economics

What could cause the demand curve to shift to D2\mathrm{D}_{2} ?

A

a decrease in student fees for universities

B

a decrease in the level of youth unemployment

C

an increase in graduate earnings compared with non-graduate earnings

D

higher A Level grades demanded for university entrance