Practise defining effective demand, aggregating individual curves and distinguishing movements from shifts when income, related prices, costs, technology or policy changes.
What ensures that demand for a product is effective?
The consumer must have the ability to buy the product.
The consumer must purchase in the private sector of the economy.
The consumer must receive consumer surplus.
The consumer must want to buy the product.
Explain the determinants of supply for an agricultural product, such as rice, and consider which of these determinants is likely to be of the greatest significance at the present time. [8]
The diagram shows a market supply curve (S).
What is measured on the X -axis and the Y -axis?
X-axis
Y-axis
quantity
income
quantity
price
price
income
income
quantity
In the diagram, is the initial demand curve for student places at universities.
What could cause the demand curve to shift to ?
a decrease in student fees for universities
a decrease in the level of youth unemployment
an increase in graduate earnings compared with non-graduate earnings
higher A Level grades demanded for university entrance
What is likely to affect the position of the demand curve for tickets to pop concerts but not the position of the supply curve?
a change in incomes of potential customers
a change in price of tickets to the concerts
a change in rents charged by venue owners
a change in seating capacity of concert venues
