HIGHER GRADE ECONOMICS
REVISION QUESTIONS
Question
Number
1
DEMAND AND SUPPLY
MARKS
Explain, using examples, what is meant by a
market.
2
2
Give a full definition of demand.
2
3
Describe the shape of a typical demand
curve.
2
Explain the principles behind the Law of
Diminishing Marginal Utility.
4
4
5
6
7
Briefly outline the 7 main determinants of
demand.
Changes in price cause expansions and
contractions in demand. Draw 2 separate
diagrams to illustrate an expansion and
contraction in demand.
All determinants of demand (other than
price) will cause an increase/decrease in
demand. Draw 2 separate diagrams to show:
7
4
4
how an increase in advertising will affect
demand;
how a fall in income will affect demand.
8
Give a full definition of supply.
2
9
Describe the shape of a typical supply
curve. A diagram should be used to
illustrate your answer.
2
10
Outline the 4 main determinants of supply.
4
11
A change in price (only) is
an expansion or contraction
Draw 2 separate diagrams to
expansion and a contraction
4
likely to cause
in supply.
illustrate an
in supply.
12
All determinants of supply (other than
price) will cause an increase/decrease in
supply. Draw 2 separate diagrams to show:
4
how a fall in production costs will affect
supply;
how a poor harvest will affect supply.
13
With the interaction of supply and demand
what is meant by the equilibrium point?
2
14
What is the formula for calculating price
elasticity of demand?
5
15
Outline what the concept of price
elasticity of demand is attempting to
demonstrate.
2
16
Briefly outline the 5 main determinants of
elasticity of demand.
5
17
Explain the significance of each of the
following terms:
5
Elastic
Inelastic
Unit Elastic
Perfectly Elastic
Perfectly Inelastic
18
What is the formula for calculating Income
Elasticity of Demand?
1
19
What relationship is Income Elasticity of
Demand trying to highlight?
1
20
What is the formula used for calculating
Elasticity of Supply?
1
21
Briefly outline the main determinants of
Elasticity of Supply.
4
22
Using an example, explain the meaning of an
inferior good.
1