Demand and Supply
38 questions· page 1 of 4
Analyse the likely effects on the global price of chocolate of the reported changes in 2015. Discuss the most effective way that the price of chocolate might be stabilised.
Discuss whether it is better to impose an indirect tax or conduct an awareness campaign to deal with the problem of demerit goods such as alcohol.
Discuss the policies that businesses might adopt to maintain sales when incomes are falling and consider which is most likely to be successful.
Explain the factors that might cause a fall in demand for chocolate and discuss the extent to which chocolate producers have the power to stop this fall in demand happening.
Explain one change in a factor of demand that would lead to maize prices rising in Malawi despite the increase in domestic production.
With reference to Extract 2 explain two reasons why maize prices are rising in Zimbabwe despite the fall in the world export price of maize.
Explain, with the help of a diagram, how a rise in the minimum price of maize in Malawi will encourage production.
With the help of a diagram(s), explain how the new sources of crude oil from hydraulic fracturing and the ‘falling enthusiasm for cars among younger Americans’ might be expected to cause a fall in the price of gasoline (petrol) in the US.
Suggest and explain one factor that might have caused the price of gasoline (petrol) to rise in the US after 2009 despite these changes.
Explain three reasons, associated with costs of production, why the supply curve for a particular market may shift to the right and consider the extent to which government microeconomic policy may also shift the supply curve for a particular market to the right.
In 2022 the supply of root ginger from Nigeria, Africa’s biggest producer, fell by 20%. Market demand was expected to grow by more than 5%.
With the help of a demand and supply diagram, explain how the market equilibrium for root ginger in Nigeria is likely to change and consider how certain you are of the new market price.
Excluding the price of electric cars, explain the determinants of demand for electric cars and consider which of these determinants is likely to be of greatest significance at the present time.