Showing posts with label demand and supply. Show all posts
Showing posts with label demand and supply. Show all posts

“The Central Problem of Economics (CPE) is about scarcity and choice.” Is this statement true? [25 marks]

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This paper examines the central problem of economics (CPE) .  One fundamental assumption of economics is that man’s wants are unlimited but...

Generally, individuals and firms are assumed to be motivated by self-interest. Explain the central economic problem of limited resources and unlimited wants. [10]

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This essay question is adapted from an actual A level economics essay examination This economics essay is about the central problem o...

According to economists, a large rise in the cost of car manufacture in the United Kingdom (UK) and a general rise in incomes of households in the UK are likely to affect the sales of cars in different ways. Explain how elasticities of demand can assist in understanding the effect of each of these changes on the sales volume of cars. [10]

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This paper explains how the elasticities of demand are useful in understanding the effect of a large rise in the cost of car manufacturin...

The price mechanism will always allocate scarce resources efficiently for all goods and services in a market economy. Assess the validity of this statement made by an economist. [15]

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This economics paper assesses whether the price mechanism will always allocate scarce resources efficiently for all goods and services in...

Consumers and producers are generally assumed to be motivated by self-interest. Explain how the pursuit of self-interest can help to address the central economic problem of limited resources and unlimited wants. [10]

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Adapted from an actual economics essay examination This economics paper explains that the pursuit of self-interest results in an effi...

E-Book: Success in Microeconomics - A Concise Companion to Core Concepts

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Hi my dear readers,  Hope my post finds you well. Kindly allow me to introduce " Success in Microeconomics - A Concise Companion...

Explain how the concepts of demand elasticity can shed light on the luxury goods market.

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This paper explains concepts of demand elasticity, namely price elasticity of demand, income elasticity of demand, and cross elasticity o...

Explain possible economic reasons as to why the car population in Singapore grew rapidly from the late 1990s to the early 2000s. [10]

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The growth of the Singapore car population indicates that the equilibrium quantity transacted has increased. This is due to a rise in both...

Assess the relevance of price elasticity of demand, income elasticity of demand, cross elasticity of demand and price elasticity of supply in explaining the effects of a worldwide recession and an increased fear of flying on the airline industry. [15]

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Apart from considering how changes in price is affected by the changes in demand and supply, it is also important to take into account the...

The terrorist attack on New York City, USA, on September 11, 2001 precipitated a worldwide recession and an increased fear of air travel, which massively affected the demand for travel by air. This led to the closure of some major airlines in the world. Explain how the worldwide recession and the closure of some of the major airlines affected the market for air travel. [10]

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Due to the terrorist attack of 9/11, there were many economic effects - recession and an increased fear of flying would lead to a decrease...

Explain the likely reasons for the increase in the car population in Singapore, from 370,000 cars to about 515,000 cars, from 1997-2012. [10]

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The growth of the car population by almost 40% can be attributed to the rise in demand and supply. There are several factors that might ha...

How is price determination related to the different roles of prices in a competitive free market? [10]

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In a competitive free market, the equilibrium market price is determined by the intersection of the market demand and supply curves. Price...

H2 Explain the likely demand and supply factors affecting the oil (petroleum) market. [10]

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Note: An "A" level Economics standard type of examination question. This paper explains the likely demand and supply factors...

Hints and Approaches to H1 and H2 A Level Economics Essay Questions for Practice

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H1 and H2 A Level Economics Essay Questions for Practice (Hints and Approaches) Essay Questions: Quick Recap and Introduction Thes...