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Cambridge IGCSE Economics practice

Paper 2 structured question: The role of markets in allocating resources

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3

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The role of markets in allocating resources

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Paper 2Structured Questions3 marks

A local bakery is facing competition from a new supermarket that sells bread at lower prices.

Description

Competition in the Bakery Market

The entry of the supermarket has led to a decrease in the bakery's sales, prompting the bakery to reconsider its pricing strategy.

  1. a

    Explain how competition affects the pricing strategy of the bakery.

    Aim for approximately 3 distinct marking points.

    [3]

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Paper 2 structured question: The role of markets in allocating resources

Paper 2Structured Questions1 marks

Description

Market for Oranges

As consumers become more health-conscious, the demand for oranges has risen sharply. However, the supply has not increased at the same rate due to seasonal factors.

  1. a

    State the effect of increased demand on the price of oranges.

    Aim for approximately 1 distinct marking point.

    [1]