Economics 9708 · AS & A Level · Demand and supply curves

Demand and supply curves — practice question

(a)[2]

(i) Calculate the approximate sugar price in January 2008.

(a)[3]

(ii) Compare the movement of sugar prices with the movement of average food prices between January 2008 and August 2009.

(b)[5]

Using diagrams, contrast the weather-based explanations for the sugar price rise with the ethanol-based explanations for the rise in price.

(c)[4]

Explain the probable response of

  • consumers of sugar in the face of a continual, rapid rise in its price. [2]
  • producers of sugar in response to a continual, rapid rise in its price. [2]
(d)[6]

Using the data as your reference, discuss the likely effects of

  • the measures taken by the Indian government. [3]
  • the measures taken by the Malaysian government. [3]

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