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Cambridge IGCSE Economics practice

Paper 2 structured question: Price determination

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2

Paper

1

Marks

Topic

Price determination

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Paper 2Structured Questions1 marks

Market conditions in a local grocery store.

Description

Grocery Store Demand and Supply

The local grocery store has noticed that during weekends, the demand for fresh produce exceeds the available supply, leading to empty shelves and customer complaints.

  1. a

    State the situation that occurs when demand exceeds supply.

    Aim for approximately 1 distinct marking point.

    [1]

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Paper 2 structured question: Price determination

Paper 2Structured Questions3 marks

Description

Market Surplus Analysis

A local electronics store has too many televisions in stock, leading to a surplus. Prices have started to drop as the store tries to sell the excess inventory.

  1. a

    Explain the impact of a surplus on market prices.

    Aim for approximately 3 distinct marking points.

    [3]