A fall in the price of a good, other things equal, leads to:
From Paper 1: How markets work
51 mark
Which one of the following would shift the supply curve for wheat to the left?
From Paper 1: How markets work
61 mark
If price elasticity of demand is −2.0, demand is:
From Paper 1: How markets work
15.12 marks
Extract A (data are illustrative, written for this paper): The UK coffee-shop market has grown quickly. In one town, a coffee chain raised the price of a latte from £3.00 to £3.30. Daily sales fell from 1,000 to 950 cups. Milk and coffee-bean prices have risen because of poor harvests, and wages have increased. Many customers say coffee is 'a daily habit', but more people now make coffee at home.
Define 'price elasticity of demand'.
From Paper 1: How markets work
15.22 marks
Using Extract A, calculate the price elasticity of demand for lattes.
From Paper 1: How markets work
15.33 marks
Explain why demand for lattes is price inelastic.
From Paper 1: How markets work
15.44 marks
Explain the effect of rising milk and coffee-bean prices on the supply of lattes. You may use a diagram.
From Paper 1: How markets work
15.79 marks
Evaluate whether the coffee chain should continue to raise its prices.
Score 0 / 23 · 0 of 8 marked
This paper is written by Plasmo in the style of the AQA GCSE Economics exam. It is not a past paper and is not produced or endorsed by the exam board.
How prices are determined Exam Questions: AQA GCSE Economics | Plasmo