CAIE IGCSE Economics - Paper 2

2.5 Price determination

Topical Past-Paper Questions

CIE (0455) questions: definitions of market equilibrium and disequilibrium. Include diagrams of demand and supply curves to determine equilibrium price and quantity, and to identify disequilibrium with shortages and surpluses.

CAIE IGCSE Economics Paper 2 Topic 2.5
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Exam material

Past-paper questions

Past-paper question 0455/22/O/N/23 [4] marks

In 2020, Singapore experienced a decrease in both its population size and its labour force. 2020 was a year of great change in a number of Singaporean markets. Some moved from disequilibrium to equilibrium. Despite all these changes, Singapore managed to increase its exports of goods and services.

b) Explain how a market moves from disequilibrium to equilibrium. [4]

Open question
Past-paper question 0455/23/O/N/22 [2] marks

Washington State is the state which grows the most apples in the US. In 2019, apple production increased in Washington State but the market was in disequilibrium. Apple farming is a labour intensive industry because apples are picked by hand. The market for apples in the US is competitive.

b) Define market disequilibrium. [2]

Open question