GCSE Economics Revision: Demand and Supply (With Mock Questions!)
Hello, GCSE Economics Students! 👋
Are you ready to ace your GCSE Economics exam? Today, we’ll be revising one of the most important topics: Demand and Supply. This is a key concept that will come up in your exam, so let's make sure you're well prepared and confident!
Overview of Demand and Supply
Demand and Supply are the backbone of economics. Understanding how they work will help you grasp how prices are determined in markets and why they fluctuate. This topic is fundamental for explaining a wide range of economic phenomena, so it's a must-know for your exam.
Key Learning Points ✏️
🌟 Demand refers to the quantity of a good or service that consumers are willing and able to buy at different prices.
🌟 Supply refers to the quantity of a good or service that producers are willing and able to offer at different prices.
🌟 Equilibrium is the point where demand and supply meet, determining the market price and quantity.
🌟 Price Elasticity of Demand (PED) shows how much the quantity demanded changes when the price changes.
🌟 Price Elasticity of Supply (PES) is the responsiveness of the quantity supplied to a change in price.
What You Need to Demonstrate 📝
At this level, you should be able to:
1️⃣ Explain the relationship between demand, supply, and price.
2️⃣ Understand and calculate equilibrium price and quantity.
3️⃣ Describe factors that cause shifts in the demand and supply curves (e.g., changes in income, consumer preferences, production costs, and technology).
4️⃣ Interpret graphs that show demand and supply.
5️⃣ Apply the concept of elasticity to real-world situations, explaining the impact of price changes on both consumers and producers.
Key Things to Remember Before the Exam 🚨
Revise your graphs! 🖼️ Being able to sketch and interpret demand and supply curves is crucial. Practice drawing shifts in curves and identifying changes in equilibrium.
Learn key definitions. Memorize the definitions of demand, supply, PED, and PES. Knowing these by heart will help you tackle both short-answer and multiple-choice questions.
Think about real-life examples. When revising, try to apply what you’ve learned to real-world situations like the housing market or the price of smartphones. This makes the concepts easier to remember.
Practice questions. The more you practice, the better you’ll get at answering questions quickly and accurately. It’s also a great way to identify any weak areas before the exam.
Don’t panic about tricky questions! If you come across a tough question, remember to stay calm, break it down, and apply the basic principles of demand and supply.
Mock Questions: Are You Ready? 💡
Let’s test your understanding with some mock questions! Get ready to think on your feet and challenge yourself.
Q1 - What happens to the demand for a product if there is an increase in consumers’ income?
a) Demand decreases
b) Demand remains the same
c) Demand increases
d) No effect on demand
Q2 - When supply decreases, what typically happens to the equilibrium price?
a) The price increases
b) The price decreases
c) The price remains constant
d) The price becomes zero
Q3 - Which of the following factors is most likely to shift the supply curve to the right?
a) A rise in production costs
b) An improvement in technology
c) A fall in the number of producers
d) A decrease in consumers’ income
Q4 - If the price elasticity of demand for a product is greater than 1, the product is said to be:
a) Inelastic
b) Unit elastic
c) Perfectly inelastic
d) Elastic
Q5 - At the equilibrium price:
a) Quantity demanded exceeds quantity supplied
b) Quantity supplied exceeds quantity demanded
c) Quantity demanded equals quantity supplied
d) Demand is greater than supply
To check your answers and see more questions check out our GCSE Economics Multiple-Choice booklet, with 250 sample questions and answers for you to revise
Good luck with your revision, and remember: you’ve got this! 🎉 Keep practicing, stay confident, and you'll do great on your exam.