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Theory of Consumer Demand · CAPE Economics Unit 1

61 past-paper questions on Theory of Consumer Demand, part of Methodology: Demand and Supply, from every CAPE Economics Unit 1 paper on Quelpr.

Practise Theory of Consumer Demand
  1. 3(a)2 marks· CAPE Economics Unit 1 · 2005 · Paper 1List TWO factors that influence the demand for coffee.
  2. 3(b)4 marks· CAPE Economics Unit 1 · 2005 · Paper 1Explain how ONE of the factors listed in (a) influences the demand for coffee.
  3. 3(a)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Calculate the elasticity of demand for compact discs using the mid-point formula.
  4. 3(b)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Determine whether the demand for compact discs is elastic, inelastic, or unit elastic, and explain your answer.
  5. 3(c)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1List TWO factors that determine the elasticity of demand for compact discs.
  6. 4(a)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Define the term 'marginal utility'.
  7. 4(b)(i)1 mark· CAPE Economics Unit 1 · 2006 · Paper 1Explain how the purchase of additional units of a commodity will affect total utility.
  8. 4(b)(ii)1 mark· CAPE Economics Unit 1 · 2006 · Paper 1Explain how the purchase of additional units of a commodity will affect marginal utility.
  9. 4(c)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Explain why a consumer may purchase more of a commodity if its price is less than its marginal utility, all things being equal.
  10. 1(a)(i)2 marks· CAPE Economics Unit 1 · 2007 · Paper 2Define the term 'marginal utility'.
  11. 1(a)(ii)a)5 marks· CAPE Economics Unit 1 · 2007 · Paper 2Calculate the marginal utility derived from video games.
  12. 1(a)(ii)b)5 marks· CAPE Economics Unit 1 · 2007 · Paper 2Calculate the marginal utility derived from novels.
  13. 1(b)5 marks· CAPE Economics Unit 1 · 2007 · Paper 2Draw a diagram illustrating Abina's budget constraint.
  14. 1(c)(i)5 marks· CAPE Economics Unit 1 · 2007 · Paper 2Calculate the marginal utility per dollar for Abina's consumption choices.
  15. 1(c)(ii)2 marks· CAPE Economics Unit 1 · 2007 · Paper 2State the optimal combination of video games and novels Abina should consume per month.
  16. 1(d)(i)2 marks· CAPE Economics Unit 1 · 2007 · Paper 2State how an increase in spending budget by $20, ceteris paribus, affects the quantity of video games and novels consumed.
  17. 1(d)(ii)2 marks· CAPE Economics Unit 1 · 2007 · Paper 2State how an increase in the price of one of the goods, ceteris paribus, affects the quantity of video games and novels consumed.
  18. 1(a)(i)3 marks· CAPE Economics Unit 1 · 2010 · Paper 2Using suitable examples, explain the concept of total utility.
  19. 1(a)(ii)3 marks· CAPE Economics Unit 1 · 2010 · Paper 2Using suitable examples, explain the concept of marginal utility.
  20. 1(a)(iii)3 marks· CAPE Economics Unit 1 · 2010 · Paper 2Using suitable examples, explain the law of diminishing marginal utility.
  21. 1(b)(i)5 marks· CAPE Economics Unit 1 · 2010 · Paper 2Copy and complete Table 1.
  22. 1(b)(ii)5 marks· CAPE Economics Unit 1 · 2010 · Paper 2Using information from Table 1, draw the consumer's demand curve for bread.
  23. 1(b)(iii)4 marks· CAPE Economics Unit 1 · 2010 · Paper 2Determine how many loaves of bread and how many bags of buns the consumer can buy with a budget of $5 to maximize satisfaction, and explain your answer.
  24. 1(b)(iv)2 marks· CAPE Economics Unit 1 · 2010 · Paper 2If the price of a loaf of bread rises to $2, identify what combination of bread and buns will maximize the consumer's utility.
  25. 2(a)(i)2 marks· CAPE Economics Unit 1 · 2010 · Paper 2Define the term 'demand'.
  26. 2(a)(ii)4 marks· CAPE Economics Unit 1 · 2010 · Paper 2Explain the 'law of demand'.
  27. 2(a)(i)10 marks· CAPE Economics Unit 1 · 2011 · Paper 2With the aid of indifference curves, explain consumer equilibrium.
  28. 2(a)(ii)3 marks· CAPE Economics Unit 1 · 2011 · Paper 2Using the indifference curves drawn previously, explain how consumer equilibrium changes as consumer income increases.
  29. 1(a)(i)a)2 marks· CAPE Economics Unit 1 · 2012 · Paper 2Define the terms 'indifference curve' and 'budget line'.
  30. 1(a)(i)b)8 marks· CAPE Economics Unit 1 · 2012 · Paper 2Draw a diagram showing an indifference curve and a budget line, and use it to explain consumer equilibrium.
  31. 1(a)(ii)5 marks· CAPE Economics Unit 1 · 2012 · Paper 2Using the diagram from (a)(i)b), explain how a decrease in the price of Good X shifts the consumer to equilibrium B.
  32. 1(b)(i)a)2 marks· CAPE Economics Unit 1 · 2012 · Paper 2Explain what is meant by the 'substitution effect'.
  33. 1(b)(i)b)2 marks· CAPE Economics Unit 1 · 2012 · Paper 2Explain what is meant by the 'income effect'.
  34. 1(b)(ii)6 marks· CAPE Economics Unit 1 · 2012 · Paper 2With the aid of a diagram, explain the income and substitution effects using either the Hicksian approach or the Slutskian approach.
  35. 2(a)(i)3 marks· CAPE Economics Unit 1 · 2014 · Paper 2List THREE determinants of price elasticity of demand.
  36. 2(a)(ii)8 marks· CAPE Economics Unit 1 · 2014 · Paper 2Calculate the price elasticity of demand using the arc method and interpret the results.
  37. 2(b)(i)4 marks· CAPE Economics Unit 1 · 2014 · Paper 2Sketch and label the demand curve faced by ABC Company Ltd, indicating total revenue before and after the price change.
  38. 2(b)(ii)3 marks· CAPE Economics Unit 1 · 2014 · Paper 2Advise ABC Company Ltd on a pricing decision that is in its best interest, justifying your answer.
  39. 2(c)(i)2 marks· CAPE Economics Unit 1 · 2014 · Paper 2Define the term 'consumer surplus'.
  40. 1(a)(i)5 marks· CAPE Economics Unit 1 · 2015 · Paper 2Copy and complete Table 1 to show the total utility and marginal utility derived from consuming 1 to 5 chocolate bars.
  41. 1(a)(ii)a)2 marks· CAPE Economics Unit 1 · 2015 · Paper 2Define total utility.
  42. 1(a)(ii)b)2 marks· CAPE Economics Unit 1 · 2015 · Paper 2Define marginal utility.
  43. 1(a)(ii)c)2 marks· CAPE Economics Unit 1 · 2015 · Paper 2Define the law of diminishing marginal utility.
  44. 1(a)(iii)a)1 mark· CAPE Economics Unit 1 · 2015 · Paper 2State the point at which Romain begins to lose satisfaction from consuming each additional chocolate bar.
  45. 1(a)(iii)b)1 mark· CAPE Economics Unit 1 · 2015 · Paper 2State the point at which Romain maximizes his satisfaction from consuming chocolate bars.
  46. 1(b)(i)2 marks· CAPE Economics Unit 1 · 2015 · Paper 2Define the term 'consumer surplus'.
  47. 1(b)(ii)4 marks· CAPE Economics Unit 1 · 2015 · Paper 2Draw Romain's demand curve.
  48. 1(b)(iii)2 marks· CAPE Economics Unit 1 · 2015 · Paper 2On the demand curve drawn in (b)(ii), shade and label the total consumer surplus.
  49. 1(c)4 marks· CAPE Economics Unit 1 · 2015 · Paper 2With reference to marginal utility theory, justify the shape of Romain's demand curve for chocolate bars.
  50. 1(a)(i)2 marks· CAPE Economics Unit 1 · 2016 · Paper 2Define the term 'normal good'.
  51. 1(a)(ii)2 marks· CAPE Economics Unit 1 · 2016 · Paper 2Define the term 'inferior good'.
  52. 1(a)(iii)2 marks· CAPE Economics Unit 1 · 2016 · Paper 2Define the term 'Giffen good'.
  53. 1(b)(i)3 marks· CAPE Economics Unit 1 · 2016 · Paper 2Explain the ordinalist approach to understanding consumer behaviour.
  54. 1(b)(ii)3 marks· CAPE Economics Unit 1 · 2016 · Paper 2Explain the cardinalist (marginalist) approach to understanding consumer behaviour.
  55. 1(c)13 marks· CAPE Economics Unit 1 · 2016 · Paper 2Discuss, with the aid of diagrams, the ordinal approach to the derivation of the demand curve.
  56. 1(a)(ii)2 marks· CAPE Economics Unit 1 · 2017 · Paper 2Define the term 'income elasticity of demand'.
  57. 1(a)(i)2 marks· CAPE Economics Unit 1 · 2018 · Paper 2Define the term 'the law of equi-marginal utility'.
  58. 1(b)(i)8 marks· CAPE Economics Unit 1 · 2018 · Paper 2Complete Table 1 given that the price of one chocolate bar is 4 and the price of one candy bar is 2.
  59. 1(b)(ii)3 marks· CAPE Economics Unit 1 · 2018 · Paper 2Explain why the optimal bundle of the two goods would be 1 unit of chocolate bars and 2 units of candy bars.
  60. 1(b)(i)5 marks· CAPE Economics Unit 1 · 2021 · Paper 2Calculate the price elasticity of demand when the rental fee increases from 1250 to 1400.
  61. 1(b)(ii)4 marks· CAPE Economics Unit 1 · 2021 · Paper 2Based on the calculated price elasticity of demand, suggest with reasons whether the owners of APB Motors should increase or decrease their rental fees.

Related topics in Methodology: Demand and Supply