Demand

What would cause a movement along the demand curve for a product?

Feb/March 2023

The diagram illustrates points lying on two demand curves. Which movement from one point to another indicates a contraction in demand?

Feb/March 2024

Tea is an extremely popular drink in Turkey and Morocco, whereas coffee is a substitute drink chosen by many people. Many cafés serve a small biscuit with a cup of tea or coffee. Some people add sugar to these drinks to make them sweeter. How would the relationship between these goods be classified?

May/June 2017

The diagram illustrates the demand for chocolate. What might explain the shift from point X to point Y?

May/June 2017

The diagram illustrates the demand for chocolate. What might explain the movement from point $X$ to point $Y$?

May/June 2017

Many people eat biscuits while having a cup of tea. From 2010 to 2015, demand for sweet biscuits declined because of health warnings concerning high sugar consumption. As a consequence, sales of tea also dropped. How would this be represented on demand and supply diagrams for biscuits and tea?

May/June 2017

From 2014 to 2015, Sao Paulo, a major city in Brazil, built more than 120 km of cycle-only lanes next to roads. The city has a car culture, and demand for car travel is price-inelastic. By contrast, in Copenhagen, the capital of Denmark, 36% of commuter journeys are now made by bicycle, which has reduced the demand for car travel in the city.

May/June 2017

The diagram illustrates the market for beef in the US, with the initial equilibrium at X. If incomes in the US increase, where will the new equilibrium be?

May/June 2018

Which factor is least likely to cause consumer spending on a new car to rise?

May/June 2018

The table gives the demand schedule for a good at a range of prices. The current market price of the good is $\$10$. After a $20\%$ rise in price, what change will there be in the quantity demanded?

May/June 2019

What conclusion can be drawn from the demand curve for the product in the diagram?

May/June 2019

Which factors affect a consumer’s demand for a product?

May/June 2021

In what way could advertising a product lead to a retail firm increasing its market share?

May/June 2021

Which factor would make the demand curve for a good move to the right?

May/June 2022

In 2019, France was producing within its production possibility curve (PPC). France exports a broad range of products. It is the world’s top exporter of luxury perfume and the 7th largest exporter of soap. Technological change influences the goods that people make and buy. The French government plans to improve infrastructure so that every household can have internet access.

May/June 2022

Read the source material thoroughly before you answer Question 1. Source material: eSports sector in Malta The eSports fact file gives these figures: Worldwide total revenue in 2019: $1 billion European revenue in 2019: $300 million Total number of viewers worldwide: 454 million Increase in viewers compared with 2018: 15% eSports is now accepted as a sports contest, in the same way as other competitive games such as football and basketball. In eSports, people compete using video games either individually or as members of a team. eSports also draws large audiences who follow these online contests. eSports is expanding quickly, both in revenue earned and in viewer numbers. Demand has risen because incomes have increased and the cost of the technology needed to play or watch eSports has fallen. Changes in social attitudes have also raised female participation in eSports. The rapid expansion of this industry has encouraged investment from both the private sector and the public sector. Firms in the private sector sponsor different eSports teams and also promote their products during eSports competitions. Investment from the public sector has come from the governments of China, Denmark, Malaysia and Malta, mainly through development and training programmes for young eSports participants. The Maltese government, from a small island nation, wants Malta to become a major European centre for eSports in order to attract visitors to eSports events. The goal is for the eSports industry to add 1% to Malta's GDP, create 3000 more jobs and strengthen the current account of its balance of payments. Malta's service sector has long been significant and contributes roughly 90% of its GDP. Malta is an appealing tourist destination because of its mild climate. The island is also used as a setting for many films and TV series, which brings in further visitors who want to see the filming locations. However, to make growth sustainable, the government recognises the value of economic diversification and does not want the economy to become too specialised. To do this, the labour force must be adaptable and the government must invest in education and training. The government offers new scholarship schemes, arranges work placements and invites professionals from other countries to help train Maltese students. Even so, there are worries that these measures could be too costly and may take too long to make a major difference to the economy. Female participation in the labour force is also promoted. Table 1.1 shows the percentage of women in the labour force (%) and GDP per head ($) for selected countries in 2019.

May/June 2022

The diagram illustrates the effect that a fall in price has on the demand for a product. What is shown by the arrow on the diagram?

May/June 2023

The demand for X exists in two locations, Y and Z. The table gives the quantity of X demanded in these locations at different prices. What conclusion can be drawn from the table?

May/June 2023

Which factor is allowed to vary when a demand curve is drawn for a good or service?

May/June 2024

What is likely to result in an extension of demand for a firm’s fruit drink?

May/June 2024

Some supermarkets sell petrol (gas) from pumps outside their shops. To draw in extra shoppers, they lower petrol prices below those of other suppliers, hoping that customers will also purchase more goods inside the store. If this strategy succeeded, how could it be represented on demand and supply diagrams?

May/June 2024

The diagrams display the demand curves for the only two consumers in a market. What shape will the market demand curve for the good take?

May/June 2025

The diagram illustrates a change in the demand curve for table-tennis balls. What is the most likely reason for this movement in the demand curve?

Oct/Nov 2015

Air travel and rail travel are substitute methods of transport. The diagram illustrates the impact of new technology on the market for air travel. What would be the most likely consequence for the market for rail transport?

Oct/Nov 2015

Air travel and rail travel are substitute types of transport. The diagram illustrates the impact of new technology on the market for air travel. What is the most likely result for the market for rail transport?

Oct/Nov 2015

Air travel and rail travel are alternative modes of transport. The diagram illustrates how new technology affects the market for air travel. What would be the most likely effect on the market for rail transport?

Oct/Nov 2015

A demand curve illustrates the connection between quantity demanded and

Oct/Nov 2016

In 2013 China moved ahead of the United States of America (US) to become the biggest importer of oil. The increase in Chinese demand pushed the oil price upward. That dearer oil made production methods used in the US, such as hydraulic fracking, viable and has supplied more oil for US domestic use. US oil firms have bought bigger, costlier capital equipment and are hiring more specialist engineers. The growth of the US oil industry helped bring the country’s unemployment rate down to 6.1% in 2014. Although China is the largest importer of oil, it is still not the world’s largest consumer. In 2013 the US oil industry produced 10.5 million barrels a day, exported 3.4 million barrels a day and imported 10.9 million barrels a day. These numbers are expected to alter in the future. For instance, in 2013 the US had 250 million vehicles and China had only 100 million. It is predicted that by 2030 China will have 350 million vehicles. If that does happen, China will become more exposed to oil price changes and interruptions to oil supply. Even though US oil output is rising, its use is falling. More oil is being found in the country and more advanced techniques are being used to extract it. At the same time, fewer young people in the country are learning to drive, vehicle ownership per household is declining and average mileage is dropping. In addition, US cars are becoming more fuel efficient because of tighter fuel economy rules and consumers are moving towards cheaper vehicles. US consumers are becoming more responsive to oil price changes, but a price rise still causes oil producers’ revenue to rise. Shifts in oil price, oil output and oil consumption also continue to have a major impact on the US economy. For example, the discovery of additional oil in the country usually influences the value of the US dollar. Changes in consumption and production affect China’s and the US’s current account positions on their balance of payments. At present China has the world’s largest current account surplus while the US has the world’s largest current account deficit. It is worth noting that both countries have been seeking to raise their economic growth rate. The US central bank, the Federal Reserve, has attempted to increase the growth of the country’s output by lowering the rate of interest.

Oct/Nov 2016

Petrol (fuel) retailers in a country have observed a steep rise in sales during August, when many people go on holiday. Why could this happen?

Oct/Nov 2018

The diagram illustrates the demand for and the supply of air travel. What might bring about a movement of the demand curve from $D_1$ to $D_2$?

Oct/Nov 2018

The table presents a company's sales of cold drinks in the UK in $2016$ and $2017$. The demand for cold drinks is affected by temperature changes. During $2016$ the sales matched the usual seasonal trend. In which month of $2017$ was this usual trend disturbed?

Oct/Nov 2019

The table presents a company’s cold drink sales in the UK during 2016 and 2017. Cold drink demand is affected by variations in temperature. In 2016, sales followed the normal seasonal trend. In which month of 2017 was the normal pattern disrupted?

Oct/Nov 2019

The table presents a company’s cold drink sales in the UK for 2016 and 2017. Changes in temperature affect demand for cold drinks. During 2016, sales matched the normal seasonal trend. In which month of 2017 was the normal pattern disrupted?

Oct/Nov 2019

In 2017, the UK added bicycle helmets to its consumer prices index (CPI) calculation for the first time. Many bicycle retailers now give customers a choice of bicycle helmets. Estimates suggest that 25 million bicycle helmets are sold worldwide each year, and the number sold is increasing steadily.

Oct/Nov 2019

The diagrams illustrate the demand curves of the only two purchasers in a market. What shape will the market demand curve for the good take?

Oct/Nov 2022

Cars and public transport are substitute goods. The price of public transport increases. What happens to the demand for cars?

Oct/Nov 2023

The diagram illustrates a demand curve. What does the shift from X to Y indicate?

Oct/Nov 2023

The diagram represents the demand for and supply of a product. The initial equilibrium is at X. Which point shows the new equilibrium position if the price of a close substitute for the product rises while all other factors stay unchanged?

Oct/Nov 2024

The diagram illustrates a shift in demand for coffee. What would lead the demand for coffee to move from $D_1$ to $D_2$?

Oct/Nov 2024

A decrease in which variable would help to remove a market shortage?

Oct/Nov 2024

A number of people in Indonesia play tennis, yet badminton is the nation’s most popular sport. The gear required to play it, such as badminton racquets, is comparatively inexpensive. Athletes from Indonesia also win a large share of international tournaments. Leading Indonesian players receive ten times the average wage and over thirty times the pay of a cleaner.

Oct/Nov 2024

Which factors influence a consumer’s demand for a product?

Oct/Nov 2025

The diagram illustrates the demand curve for a good. What can be concluded from one demand curve that slopes downward?

Oct/Nov 2025