Economics 0455 · IGCSE
Price changes
18 practice questions on Price changes, with worked solutions and instant marking.
The diagram illustrates the price of a product in year 1 and year 2. Which changes in demand and supply are consistent with the price movement in year 2?
May/June 2016
In $2015$ the world price of petrol (gasoline) fell markedly. Which factor would not have been responsible for the drop in price?
May/June 2017
The diagram illustrates the demand for chocolate. What could lead to the movement from point X to point Y?
May/June 2017
The diagram illustrates the effect of a tax being imposed on a product. Which area shows the part of the tax paid by consumers of the product?
May/June 2019
The table gives the demand and supply schedules for rice. The present price is $2.00 per kilo. What would occur if the price were lowered to $1.00 per kilo?
May/June 2022
The diagram illustrates the supply curve for coffee. The price of coffee rises from $P_1$ to $P_2$. In what way would this advantage firms in the coffee industry?
May/June 2023
The price of a good rises. What might lead to this?
May/June 2023
During one year, the world output of coal stood at 3.94 billion metric tonnes with an average yearly price of $252\text{ per metric tonne}$. A few years afterwards, world output had fallen to 3.66 billion metric tonnes while the average yearly price dropped to $120\text{ per metric tonne}$. What could account for this decrease in the price of coal?
May/June 2023
What might lead to an increase in the price of tea?
May/June 2024
The diagram illustrates the effect of a tax imposed on a product. Which area shows the amount of tax paid by the consumer?
May/June 2024
The table presents the demand and supply schedules for rice. The present price is $2.00 per kilo. What will happen if the price falls to $1.00 per kilo?
May/June 2025
A company chose to lower the price of its product by $10\%$. What would happen?
Oct/Nov 2015
The diagram illustrates the equilibrium market price $P_E$ and quantity $Q_E$ for rice in a country. Which government action could make the market price of rice rise or fall to $P_1$?
Oct/Nov 2018
During 2015, the world price of oil dropped sharply because demand and supply conditions changed. One of the changes was the introduction of a new extraction technique called fracking. Which event would not have helped to bring about the price fall?
Oct/Nov 2018
The diagram illustrates the demand curve for coffee in the US. Why did quantity demanded change from $Q_1$ to $Q_2$?
Oct/Nov 2020
What leads to a change in the price of a product in a free market economy?
Oct/Nov 2023
The global price of cocoa has been decreasing, whereas the prices of goods produced from cocoa have been increasing. Which combination could account for this?
Oct/Nov 2024
Petrol prices rise in a country with a market economic system. What consequence does this lead to?
Oct/Nov 2025