Quelpr
2 marksMarket Equilibrium

CAPE Economics Unit 1 · 2013 · Paper 2 · Question 1(a)(iii)

Definitions of market terms.

Define equilibrium.

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Other parts of this question

  1. 1(a)(i)Define demand.[2 marks]
  2. 1(a)(ii)Define supply.[2 marks]
  3. 1(b)Copy and complete the table to show the market demand for ice cream.[2 marks]
  4. 1(c)Carefully draw and label a graph showing: (i) equilibrium (ii) equilibrium price (iii) equilibrium quantity.[6 marks]
  5. 1(d)(i)Referring to your graph in (c), explain how the increase in taxes will affect the market supply for ice cream.[7 marks]
  6. 1(d)(ii)State whether the government's objectives of reducing obesity and raising revenue have been achieved, justifying your answer.[4 marks]

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