Text A, Paragraph 2
In response to a drop in smartphone prices, the USA saw a significant increase in sales during the holiday season. Consumers were quick to take advantage of the lower prices, leading to long queues at electronic stores. This highlights the relationship between price and quantity demanded.
Define the term quantity demanded indicated in bold (Text A, Paragraph 2).
How did you do?
Did this page help you?
Text A, Paragraph 2
In 2024, widespread research linking excessive sugar consumption to serious health problems led to an increase in public health campaigns across Canada. These campaigns, coupled with rising consumer awareness, have significantly reduced the demand for sugary soft drinks, as more consumers are turning towards healthier alternatives. The soft drink industry has faced declining sales, especially in urban areas where the campaigns are most prominent.
Draw a diagram showing the effect of rising health concerns on the demand for soft drinks in Canada (Text A, Paragraph 2).
How did you do?
Did this page help you?
Text G, Paragraph 1
Following a sharp rise in petrol prices, many commuters in Manchester have switched to public transportation, reducing their reliance on personal vehicles. This shift is an example of how the income effect can influence consumer choices.
Define the income effect indicated in bold (Text G, Paragraph 1).
How did you do?
Did this page help you?
Text E, Paragraph 2
In China, a sharp increase in consumer incomes has led to greater spending on luxury goods such as designer clothing and high-end electronics. This increase in real income has shifted the demand curve for luxury items to the right.
Define the term real income indicated in bold (Text E, Paragraph 2).
How did you do?
Did this page help you?
Text C, Paragraph 2
The popularity of organic food products has increased rapidly in recent years, leading to a rightward shift in the demand curve for organic fruits and vegetables. This shift has occurred even though the prices of these products have remained relatively stable.
State two non-price determinants of demand that can shift the demand curve indicated in bold (Text C, Paragraph 2).
How did you do?
Did this page help you?
Text A, Paragraph 1
In 2024, a major sporting event was held in Argentina, attracting millions of tourists from around the world. In anticipation of the event, the government launched a large-scale campaign promoting tourism and offering incentives such as discounted flights and accommodation. As a result, the demand for hotel bookings and tourist services surged in key cities like Buenos Aires and Mendoza.
Draw a diagram showing the effect of the government's promotional campaign on the demand for hotel bookings in Argentina (Text A, Paragraph 1).
How did you do?
Did this page help you?
Text D, Paragraph 3
During the winter months, demand for heating oil tends to rise in northern countries. However, due to stable prices, the increase in demand is attributed mostly to seasonal needs.
Apart from seasonal needs, state two factors that could increase the demand for heating oil in northern countries (Text D, Paragraph 3).
How did you do?
Did this page help you?
Outline two assumptions underlying the law of demand.
How did you do?
Did this page help you?
Text B, Paragraph 1
Spain's government has launched an advertising campaign encouraging people to eat more locally produced vegetables to support domestic farmers. Since the campaign began, vegetable sellers have noticed an increase in sales and slight price changes.
Using a demand and supply diagram, explain how a change in consumer preferences might affect the vegetable market in Spain.
How did you do?
Did this page help you?
Text A, Paragraph 2
In recent years, Canada has seen an influx of skilled workers, particularly in urban areas like Toronto and Vancouver. These professionals are seeking housing close to work. Real estate agents report that this is putting pressure on the housing supply, and rental prices have been rising noticeably. City officials are now considering policies to manage the housing market, including incentives to build more apartments.
Using a demand and supply diagram, explain how an increase in population could affect the housing market in Canada.
How did you do?
Did this page help you?
Text B, Paragraph 4
In Japan, locally grown fruits, especially luxury melons, are highly valued and often given as gifts. Recently, the government launched a campaign encouraging people to buy locally grown fruits over imported varieties. Following this, fruit markets in cities like Tokyo and Osaka noticed a change in sales of domestic produce. Farmers are hoping that consumer loyalty towards Japanese products will alter behaviour, as the campaign promotes the benefits of supporting local agriculture over imports.
Using a demand and supply diagram, explain how a change in consumer preferences might affect the fruit market in Japan.
How did you do?
Did this page help you?
Text D, Paragraph 3
In Brazil, coffee has long been a staple beverage, but recently tea has gained popularity among health-conscious consumers. However, a drought affecting tea-growing regions in Asia has caused a change in tea prices, prompting some Brazilian consumers to consider coffee as an option.
Using a demand and supply diagram, explain how an increase in the price of tea could affect the coffee market in Brazil.
How did you do?
Did this page help you?