CAIE A-Level Economics 2.4.2 Demand, Supply and Equilibrium

CAIE A-Level Economics 2.4.2 Demand, Supply and Equilibrium
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise identifying demand or supply shocks, shifting the correct curve and predicting equilibrium price and quantity when one or both sides of a market change.

How this is tested

  • identify whether the event changes demand, supply or both before choosing each shift direction
  • draw and label the original and new curves, equilibrium price and equilibrium quantity
  • resolve simultaneous shifts by stating which outcome is certain and which depends on relative size

Question 2(a)

[Maximum number: 8]

In 2022 the supply of root ginger from Nigeria, Africa's biggest producer, fell by 20%. Market demand was expected to grow by more than 5%.

With the help of a demand and supply diagram, explain how the market equilibrium for root ginger in Nigeria is likely to change and consider how certain you are of the new market price.