10 Commerce Test Revision

1. List and explain 5 factors that impact on demand.

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2. Using two diagrams, illustrate the difference between an expansion of demand and an increase in
demand.

3. List and explain 4 factors that impact on Supply.

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4. What does it mean if a market is in equilibrium?

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5. Briefly explain (in words and a diagram) what an expansion of Supply is.

Diagram:

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6. Explain (in words and with a diagram) how a price above equilibrium will always
move back towards equilibrium.

Diagram:

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7. A) Show on a diagram below a shift rightward of demand in the Jean Market.

B) Give one example for a shift to the right of the demand curve in the Jean Market.

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C) How would this affect the equilibrium price and quantity?

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8. A) Show on a diagram below a shift leftward of supply in the Jean Market.

B) Give one example for a shift to the left of the supply curve in the Jean Market.

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C) How would this affect the equilibrium price and quantity?

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9. Use separate (fully labelled) diagrams to show the effect that each of the following
would have on the market for ice creams:
a. An advertising campaign
b. Ice cream is found to cause cancer
c. A strike in all major ice cream production factories
d. A decrease in the price
e. An increase in income tax