AVI-CENNA SCHOOL

ECONOMICS TEST 1 QUESTIONS YEAR 10 TERM 2 2021/2022 SESSION

1.
PRICE PER QUANTITY QUANTITY DEMANDED
UNIT(£) SUPPLIED PER MONTH
PER MONTH
2 100 400
4 150 350
6 200 300
8 250 250
10 300 200
12 350 150
14 400 100

(a) Plot and label the demand and supply curve. Establish the equilibrium price and quantity
traded. [6]
(b) Explain the difference between an equilibrium price and a disequilibrium price. [2]
(c) Calculate is excess demand at £4 [2]
(d) Outline two factors that will cause change in supply [4]

2. Using a demand and supply diagram, analyse the effect of the followings on market price and
quantity
i) Increased advertising for the product [5]
ii) Consumers’ tastes and fashions changing in favour of other products [5]
iii) The government paying subsidies to producers [5]
iv) Technical failure such as a cut in power supplies or mechanical breakdown [5]