Edexcel A Level Economics B
Edexcel A Level Economics B 1.3 Introducing the Market Exam Questions
Free Edexcel A Level Economics B exam questions on 1.3 Introducing the Market, with mark schemes. Covers demand, supply, equilibrium, elasticity and the price mechanism.
1.3 Introducing the Market exam questions
2 question packs of real past exam questions with their mark schemes. Answer every question without notes, then mark your answers line by line against the mark scheme.
StemUp mark scheme flashcards
A Level Economics Flashcards
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Pick your exam board, then test yourself with the questions on this page.
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About Edexcel A Level Economics B 1.3 Introducing the Market
1.3 builds the demand and supply model you will use throughout the course. Expect diagrams and elasticity calculations based on data.
What you need to know
- Demand and supply Movements along versus shifts, and the factors that shift each curve.
- Equilibrium Where demand equals supply. Excess demand and excess supply push the price towards equilibrium.
- Elasticity PED, YED and PES: formulae, interpretation and the link between PED and total revenue.
- The price mechanism Prices signal, ration and give incentives, allocating scarce resources.
Common mistakes in 1.3 Introducing the Market
- Shifting a curve when the good's own price changes.
- Writing the PED formula upside down.
- Not labelling the new equilibrium after a shift.
Try three 1.3 Introducing the Market exam-style questions
1. The price of a product rises by 8 percent and quantity demanded falls by 12 percent. Calculate PED. (2 marks)
Show the mark scheme answer
PED = -12 / 8 (1) = -1.5, so demand is price elastic (1).
2. Explain why a rise in incomes shifts demand for a normal good. (2 marks)
Show the mark scheme answer
Consumers can afford more at every price (1), so demand shifts right, raising price and quantity (1).
3. Explain one factor that determines price elasticity of supply. (2 marks)
Show the mark scheme answer
Spare capacity: firms with unused capacity can raise output quickly when price rises (1), so supply is more elastic (1).
1.3 Introducing the Market FAQs
What does Edexcel A Level Economics B 1.3 cover?
Demand, supply, equilibrium, elasticities and the price mechanism.
Which elasticities do I need?
PED, YED and PES for Economics B, with their formulas and interpretations.
How does PED affect revenue?
If demand is price inelastic, a price rise increases revenue. If it is elastic, a price rise reduces revenue.
Revise this topic with flashcards: A Level Economics Flashcards, with mark scheme answers for Anki and Quizlet.
