Price determination
2.4What the syllabus asks of you
- Price mechanism: how the price mechanism provides answers to the basic resource allocation decisions of what, how and for whom to produce
- Market equilibrium: equilibrium price and equilibrium quantity in a market: definition of market equilibrium; interpretation of equilibrium using demand and supply schedules; drawing and interpretation of equilibrium using demand and supply curves
- Market disequilibrium: disequilibrium prices and quantities: definition of market disequilibrium; interpretation of disequilibrium using demand and supply schedules; drawing and interpretation of disequilibrium using demand and supply curves
- Market disequilibrium: shortages (demand exceeding supply) and surpluses (supply exceeding demand)
Read the notes first
Chapter 2: Price determination
Drill this topic
Every question on Price determination, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
15 questions
1May / June 2026 · Paper 11 · Q4Show mark scheme →
Ato allocate scarce resources
Bto increase the provision of merit goods
Cto make the distribution of goods and services more equal
Dto reduce the negative externalities of production and consumption
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2Oct / Nov 2025 · Paper 13 · Q4Show mark scheme →
Aprices allow income to be distributed equally
Bprices ration scarce resources among economic agents
Cprices rise and fall to reflect shortages and surpluses
Dprices send information to consumers and producers
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3Oct / Nov 2025 · Paper 13 · Q6Show mark scheme →
Aprice 10, quantity 100
Bprice 9, quantity 200
Cprice 8, quantity 300
Dprice 7, quantity 400
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4May / June 2025 · Paper 12 · Q5Show mark scheme →
A$10
B$20
C$200
D$400
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5May / June 2025 · Paper 12 · Q7Show mark scheme →
Aequilibrium
Bexcess supply
Crising profits
Dshortage
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6Oct / Nov 2024 · Paper 13 · Q6Show mark scheme →
Aquantity demanded
Bprice
Cquantity supplied
Dthe number of firms
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7May / June 2024 · Paper 12 · Q7Show mark scheme →
AExcess demand results from a government maximum price below the equilibrium price.
BThe point where the demand and supply curves cross.
CPrice changes cause further changes in both demand and supply.
DThe quantity demanded by consumers equals the quantity supplied by producers.
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8Oct / Nov 2022 · Paper 12 · Q6Show mark scheme →
ADiagram A
BDiagram B
CDiagram C
DDiagram D
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9May / June 2022 · Paper 11 · Q6Show mark scheme →
ADemand exceeds supply by 200 000 tonnes.
BDemand exceeds supply by 400 000 tonnes.
CSupply exceeds demand by 200 000 tonnes.
DSupply exceeds demand by 400 000 tonnes.
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10May / June 2022 · Paper 11 · Q8Show mark scheme →
Ahighest / highest
Bhighest / lowest
Clowest / highest
Dlowest / lowest
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11May / June 2022 · Paper 12 · Q8Show mark scheme →
AThe demand schedule will shift to the left.
BThe market will move from shortage to surplus.
CThe market will move from surplus to shortage.
DThe supply schedule will shift to the right.
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12May / June 2020 · Paper 11 · Q6Show mark scheme →
AOQ1 – OQ2
BOQ1 – OQ3
COQ2 – OQ4
DOQ3 – OQ5
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13May / June 2019 · Paper 11 · Q6Show mark scheme →
AA sequence of poor harvests resulted in shortages.
BDecreased transport costs led to a surplus of supply.
CFarmers matched demand by planting more coffee bushes.
DThe price of coffee was fixed between producers.
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14May / June 2018 · Paper 11 · Q5Show mark scheme →
ADemand for the product will increase.
BNo more of the product can be supplied.
CSome consumers are willing to pay higher prices.
DSuppliers are facing rising costs.
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15May / June 2017 · Paper 11 · Q4Show mark scheme →
AThe distance from W to X shows a shortage of the product.
BThe distance from Z to Y shows a surplus of the product.
CThe movement from W to Y shows a fall in the quantity demanded of the product.
DThe movement from X to Z shows a fall in the quantity supplied of the product.
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