Question 11 mark
Demand is and supply is . What is the equilibrium price?
1.2.6 · How markets work
Price determination
Question 21 mark
In the same market, and , a maximum price of £15 is imposed. What is the excess demand?
Question 31 mark
At a price above equilibrium there is
Question 41 mark
Demand rises and supply falls at the same time. What happens?
Question 51 mark
Demand and supply both increase. Which outcome is certain?
Question 61 mark
A student writes: 'Demand for concert tickets rose, so the price rose, which shifted supply to the right.' What is wrong?
Question 71 mark
Demand shifts from to . What is the new equilibrium?
Question 81 mark
Why does a shortage tend to disappear in a free market?
Data response 140 marks
Avocado prices
A wholesale market for avocados in the UK.
Extract A: Wholesale avocado prices
| Year | Price (£/kg) | Volume traded (tonnes) |
|---|---|---|
| 2023 | 2.40 | 5,200 |
| 2024 | 3.00 | 5,000 |
Extract B: A difficult year
Drought in two major growing regions cut harvests in 2024. At the same time, cafés added avocado dishes to their menus and supermarket sales of avocados kept growing. Some growers are planting new orchards, which take three to four years to produce fruit.
(a) Calculate2 marks
Using Extract A, calculate the percentage change in the wholesale price of avocados between 2023 and 2024.
(b) Explain5 marks
With the help of a supply and demand diagram, explain why the price of avocados rose in 2024.
0 words
(c) Examine8 marks
Examine two factors that could cause the price of avocados to fall over the next five years.
0 words
(d) Assess10 marks
Assess the likely effects of the higher price of avocados on consumers and growers.
0 words
(e) Discuss15 marks
Discuss whether the price mechanism is the best way to allocate avocados when supply is disrupted.
0 words