Quelpr
4 marksMarket Equilibrium

CAPE Economics Unit 1 · 2011 · Paper 2 · Question 2(b)(ii)b)

Use the demand and supply diagram to explain the effect on equilibrium price and quantity of an improvement in the technology used in producing a good.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 2(a)(i)With the aid of indifference curves, explain consumer equilibrium.[10 marks]
  2. 2(a)(ii)Using the indifference curves drawn previously, explain how consumer equilibrium changes as consumer income increases.[3 marks]
  3. 2(b)(i)Draw a demand and supply diagram for a good.[4 marks]
  4. 2(b)(ii)a)Use the demand and supply diagram to explain the effect on equilibrium price and quantity of an increase in consumer income.[4 marks]

More practice: the rest of this paper · more Market Equilibrium questions · all CAPE Economics Unit 1 past papers