Economics 2281 · O Level
Price changes
13 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 match the price movement in year 2?
May/June 2016
In $2015$, the world price of petrol (gasoline) dropped sharply. Which of the following would not have caused this price decrease?
May/June 2017
The diagram illustrates the impact 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
In February 2017, Europe faced a temporary shortage of fresh vegetables because of bad weather. During that period, the markets for several vegetables, such as broccoli and lettuces, were not in equilibrium. Food prices usually vary more than the prices of manufactured goods and services, and these variations affect the inflation rate.
May/June 2019
The table presents the demand and supply schedules for rice. The present price is $2.00$ per kilo. What is likely to happen if the price falls 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 benefit firms in the coffee industry?
May/June 2023
The price of a good rises. What might lead to this?
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 that has been imposed on a product. Which area shows the amount of tax paid by the consumer?
May/June 2024
What is likely to lead to an extension in demand for a firm’s fruit drink?
May/June 2024
During 2015, the global oil price dropped sharply because demand and supply conditions changed. One of these changes was the introduction of a new extraction technique known as fracking. Which event would not have helped cause the price fall?
Oct/Nov 2018
What factors lead to a change in the price of a product in a free market economy?
Oct/Nov 2023
The world 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