Specification point 1.2.6 · Theme 1
How markets work · Introduction to markets and market failure
Questions tagged to this specification point
26 questions
Long-form evaluation and discussion
Evaluate the microeconomic effects of rising energy bills on the hotel industry or an industry of your choice.
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Evaluate the likely microeconomic consequences of consumers shifting from vehicles powered by fuel obtained from oil to electric-powered vehicles.
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Case study · Branded coffee shops
With reference to the information provided and your own knowledge, evaluate the microeconomic and macroeconomic effects of increased UK demand for coffee at branded coffee shops.
Questions built around exam extracts
Case study · The electronics industry
With reference to Extract A, explain the likely reasons for the change in price of electronic devices. Include a supply and demand diagram in your answer.
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Case study · The market for television content
Discuss likely reasons why the market price of streaming television content is increasing. Draw a supply and demand diagram to support your answer.
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Case study · UK branded coffee shop chains market
With reference to Figure 2 and your understanding of price elasticity, examine two factors that may cause significant changes in the international price of coffee beans.
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Case study · The market for fish
Explain the likely impact of the new 2020 TACs on the price of cod. Include a supply and demand diagram in your answer.
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Case study · The travel and tourism industry
With reference to the information provided, discuss the decision by Jet2 to increase its package holiday prices.
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Case study · The UK Rail Industry
Refer to Figure 1. Explain the likely effect of the change in subsidy levels between 2017 and 2018 on rail fares. Include a supply and demand diagram in your answer.
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Case study · Health provision
Discuss likely reasons why the prices of treatments in private sector hospitals are increasing. Draw a supply and demand diagram to support your answer.
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Case study · The UK energy market
With reference to Figure 1, explain one likely reason for the overall trend in the real price of gas and electricity.
Case study · Energy markets
With reference to Figure 1 and Extract A, explain why the price of uranium has ‘fallen to a 13-year low’ (Extract A, lines 2 and 3) in 2016. Include a supply and demand diagram in your answer.
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Case study · Energy markets
Discuss the likely microeconomic effects of this decision on energy producers and consumers. Include a supply and demand diagram in your answer.
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Case study · The market for housing
With reference to Extract A, assess the likely impact of the Help to Buy scheme on the market for rented properties in the UK.
Case study · The market for housing
With reference to Figure 2, calculate the percentage change in house prices between the first quarter of 2009 and the first quarter of 2015. You are advised to show your working.
Focused calculations, explanations and diagrams
Explain how the operation of market forces will eliminate an excess supply of coffee.
Annotate the diagram below to show the effect of the cyclone on the price of vanilla beans.
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Define the term ‘equilibrium price’.
Draw a supply and demand diagram to show the likely effect of the change in the number of subscribers on the market equilibrium for Disney+ services.
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With reference to the information provided, draw a supply and demand diagram to show why the price of cobalt fell between June 2018 and June 2019.
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Draw a supply and demand diagram to show the likely microeconomic effects of the hurricane on the US oil market.
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Explain one likely reason for the difference in average house prices between London and the North East of England.
Calculate the new equilibrium price and quantity following the successful advertising campaign and the fall in production costs. Use the last two columns for your working.
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Explain why reducing the tuition fee cap may result in excess demand for university places.
Quick checks of economic understanding
Between June 2018 and June 2019 the price of cobalt fell by:
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The ratio of the average house price in London to the average house price in the North East of England is: