Supply

The Indian government provides farmers with a subsidy of $5 per kilo so that they supply food in a market where X shows the equilibrium position. The resulting effect is shown in the diagram below. What will the new equilibrium price and quantity supplied be after the subsidy?

Feb/March 2017

How will the closure, for maintenance work, of the world’s largest oil field affect the market for oil?

Feb/March 2017

What does not remain constant when a firm's supply curve is being constructed?

Feb/March 2020

Which factor would not lead to a shift in the supply curve?

Feb/March 2024

The diagram illustrates the market for fresh fish in the Caribbean, with equilibrium at point X. A new kind of fishing boat raises output, which lowers costs. Which point shows the new equilibrium?

May/June 2015

When new oil reserves are found, what has risen in supply?

May/June 2015

In the diagram, the market for fresh fish in the Caribbean is shown, with the starting equilibrium at point X. A new type of fishing boat raises output, so costs fall. Which point shows the new equilibrium?

May/June 2015

The diagram illustrates the market for fresh fish in the Caribbean, with the original equilibrium at point $X$. A new type of fishing boat raises output, thereby lowering costs. Which point shows the new equilibrium?

May/June 2015

A government imposes a tax on the production of cars. What is likely to fall?

May/June 2016

By 2014, government subsidies to the Chinese steel industry had created 200 million tonnes of surplus output. The diagrams illustrate the market for Chinese steel. Which diagram would show the position after the subsidy, but before the market had adjusted?

May/June 2016

A government imposes a tax on the production of cars. What is likely to fall?

May/June 2016

If a government imposes a tax on the production of cars, what is likely to fall?

May/June 2016

In England, football stadiums are generally constructed and funded by the private sector, whereas in some countries the government constructs and funds the stadiums. Many football stadiums in the English Premier League are sold out on match days. In the short run, the supply of seats is perfectly inelastic. Football clubs could even increase prices, continue to sell their tickets and therefore increase their profits. Premier League footballers at present earn very high wages.

May/June 2018

Floods damaged a large quantity of the agricultural products in a country. What is likely to have happened to the price of agricultural products and the volume of imports of agricultural products?

May/June 2019

Floods damaged a large proportion of a country's agricultural products. What is likely to happen to the price of agricultural products and to the quantity of agricultural products imported?

May/June 2019

A country's agricultural products were heavily damaged by floods. What is likely to have happened to the price of agricultural products and the volume of imports of agricultural products?

May/June 2019

A producer of tinned beans introduces mechanisation to its assembly line. As a result, output rises by $30\%$ and labour falls by $20\%$. How and why will this change supply curve $S$?

May/June 2022

What would cause an upward movement along the supply curve for rice?

May/June 2023

The diagram illustrates the supply curve for a good. What is the name and cause of the movement from X to Y?

May/June 2023

The diagram illustrates a movement in the supply curve for New Zealand’s airlines from $S_1$ to $S_2$. What is the most likely reason for this shift?

May/June 2024

The diagram illustrates the demand and supply curves for a product at its equilibrium price $P$. How would the introduction of a subsidy be represented?

May/June 2025

In August 2013, a prolonged strike in north-east India, where the finest and most expensive Darjeeling tea is grown, brought the tea industry to a standstill at harvest time. What would be the probable result of this situation on a demand and supply diagram for Darjeeling tea?

Oct/Nov 2015

A government pays farmers a subsidy of $\$5$ for each kilo supplied of food in the open market, where $X$ marks the initial equilibrium position. The outcome is shown in the diagram. What are the new equilibrium price and the quantity supplied after the subsidy is introduced?

Oct/Nov 2016

A government provides subsidies for pineapple production. This is likely to

Oct/Nov 2016

A government places a $12 per kilo tax on farmers when they supply food in the open market, with X marking the original equilibrium position. The effect is shown in the diagram below. What will be the new equilibrium price and quantity supplied after the tax is introduced?

Oct/Nov 2016

A government provides a subsidy for pineapple production. This is likely to

Oct/Nov 2016

In 2015, an oil company said that it would begin drilling for oil deposits in the Arctic Ocean. What effect will this have?

Oct/Nov 2017

Over the last few years, the world market price of crude oil has dropped sharply. One reason has been the rise in oil produced through the new extraction method of fracking. How would this be represented on a demand and supply diagram for the crude oil market?

Oct/Nov 2017

In 2014, global Gross Domestic Product (GDP) was US$78 000 billion. By the following year, this had climbed to US$80 730 billion. In earlier years, the USA and Germany might have been expected to make the biggest contribution to the rise in GDP. China made up 20% of the increase in world output in 2015. China is expected to become the largest economy. It is becoming a tougher rival in a range of markets. This greater price competitiveness comes from several factors, including keeping the exchange rate low, offering subsidies to several industries and raising labour productivity. Even so, in 2015 the Chinese Government was weighing up whether to shrink the country’s steel industry, perhaps by reducing the subsidy it received. Fig. 1 illustrates how the steel market could be influenced by this kind of change. Fig. 1 The market for steel in China in 2015 shows a vertical axis labelled "price of steel" and a horizontal axis labelled "quantity of steel". The origin is marked "O". Two equilibrium prices are shown, with "P2" above "P1" on the vertical axis. Two quantities are shown on the horizontal axis, with "Q2" to the left and "Q1" to the right. A downward-sloping demand curve is labelled "D1". Two upward-sloping supply curves are shown, labelled "S1" and "S2", with "S2" positioned to the left of "S1". Some developed countries have been facing difficulties recently. For example, Australia has experienced a falling economic growth rate. To stimulate domestic economic activity, the Reserve Bank of Australia has reduced interest rates. The economic growth rates of developing and emerging economies are rising. In Africa, this is partly due to the discovery and use of oil and mineral resources. These countries use different exchange rate systems and have had varying degrees of success in attracting multinational companies. Many African countries apply protectionist measures, though some are shifting towards free trade. In most developing and emerging economies the birth rate is declining. The effect of this change depends on how large the fall is relative to the original rate. For example, Nauru is one of the smallest countries in the world, with a population of only 10 000. Its birth rate dropped from 26 to 25 in 2015.

Oct/Nov 2017

A government wants to raise steel production and expand steel sales by providing subsidies to private producers. A subsidy of $W - Z per tonne is given. Using the diagram, what would the sales value of steel be after the subsidy?

Oct/Nov 2018

What factors can make the supply curve of a product move to the right?

Oct/Nov 2019

There has been an upward movement along the supply curve for a product. What is the most likely reason for this?

Oct/Nov 2019

The diagram illustrates a movement of the supply curve for cars in China from $S_1$ to $S_2$. What is the most probable reason for this movement in the supply curve?

Oct/Nov 2020

The diagrams illustrate movements in the demand and supply curves for a good. Which diagram shows the effect of a government giving a subsidy for the good?

Oct/Nov 2021

An economy uses potash in the production of fertiliser. A fresh potash deposit is found. Which diagram illustrates this change in the market for potash?

Oct/Nov 2021

The diagram illustrates a movement of the supply curve for New Zealand’s airlines from $S_1$ to $S_2$. What has caused this shift?

Oct/Nov 2021

Borneo is known worldwide for its rainforests, which create both private and external benefits. Even so, the economy depends heavily on oil, a finite resource. When oil reserves were discovered in other parts of the world, the world price of oil fell sharply. Oil producers in Borneo were affected by this.

Oct/Nov 2021

The diagram illustrates the supply of motor vehicles. What would lead to the supply curve moving from $S_1$ to $S_2$?

Oct/Nov 2022

The workers get a higher pay rate, but their productivity does not rise. The workers do not purchase the product they make. How would this alteration be shown on a demand and supply diagram for the product?

Oct/Nov 2022

What does a supply curve indicate?

Oct/Nov 2023

A number of small energy suppliers have gone out of business because costs have increased. What is the most probable impact of this on energy prices and the range of energy suppliers available to consumers, if the government does not intervene?

Oct/Nov 2023

What factors would make the supply curve for an agricultural product move to the right?

Oct/Nov 2023

The graph illustrates the effect of a tax on the supply of petrol (gas). What conclusion can be drawn from this graph?

Oct/Nov 2024

A spell of severe weather causes the rice crop to fail. What happens in the market for rice?

Oct/Nov 2024

The table gives the supply of a product at different prices. If the price rises from $12$ to $14$, what change will occur in supply?

Oct/Nov 2024