gcse economics - demand and supply - past exam questions

FOUNDATION LEVEL

• Why do you think that there has been a fall in the demand for beer in recent years (6)
• How might producers of spirits (e.g. vodka) react to the fall in the demand for spirits (3)

• Use demand and supply to explain the factors that have caused the increase in ownership of mobile phones. You can use diagrams if you wish. (10)

• CD’s have become increasingly popular, despite being more expensive than cassette tapes. Give 2 economic reasons for this. (2)

• Why do you think that HMV wanted to reduce the price of some CD’s? (5)

• CD’s sold over the internet are sometimes cheaper to buy than in high street shops. Suggest and explain the reasons why this is so. (5)

• McDonalds wants to open a chain or restaurants in China. Explain the factors that would influence the demand for its products in these new restaurants. (9)

HIGHER LEVEL

• Using the data on page 2 (see2002 paper) describe what happened to the price of petrol in Britain between 1995 and 2000 (2)

• Suggest and explain the reasons for the changes in petrol prices in Britain (6)

• Why do some European governments tax petrol so heavily? (6)

• Explain the supply factors which might affect the price of oil. (9)

• Do you think that rising oil prices are damaging for the world economy? Give reasons for your answer. (10)

• The government is considering imposing a tax on chocolate.
1) show on the diagram below how the price and quantity of chocolate might change after the tax has been imposed.

2) explain your diagram (5)
3) Why might the price of chocolate not rise by the full amount of the tax? (4)