A quick 10 questions from section 2 of the syllabus aimed at higher and standard level students.

1) Define demand

2) State three factors that determine demand

3) Define supply

4) Use a supply and demand diagram to show the effect on a subsidy given to the producer

5) Draw a diagram to illustrate a maximum price

6) Define using the relevant formula price elasticity of demand.

7) For a luxury product what value would you expect to find in terms of income elasticity of demand?

8) Use a diagram to illustrate the importance of elasticity for a firm producing an elastic product in terms of pricing decisions and total revenue.

9) Explain the concepts of substitutes and complements using cross elasticity of demand.

10) Draw a buffer stock diagram