IGCSE ECON

How Prices are determined _chap 7

• A Try to draw the situation, which happens when demand shifts to the left. Use the table to give 3 reasons why this may happen

• When might a fall in incomes lead to an increase in the demand for a product and vice versa?

• Try to draw a supply and demand diagram showing equilibrium price and quantity

• Do the same for excess supply and excess demand.

• Using housing as an example try to explain excess supply and demand in your own words

• If there is a fall in demand the opposite happens. Draw the diagram to show the effect of a fall in demand, where the demand curve shifts to the left.

• If there was a change in price of mars bars, why wouldn’t the demand curve shift?

• Again do the same for a fall in supply where the supply curve shifts to the left

• Try to do the same for the supply curve • a) price increase• b) price decrease

• Exam questions