Diagram Preview (Draft) - A Level Economics MCQ Quiz

Question 1/7

Which of the diagrams below is most likely to show the impact on the market for UK cinema tickets of a large rise in the price of streaming subscriptions?

Demand shifts right from D1 to D2 along an unchanged supply curve S1: price rises from P1 to P2 and quantity rises from Q1 to Q2.

Demand shifts left from D1 to D2 along an unchanged supply curve S1: price falls from P1 to P2 and quantity falls from Q1 to Q2.

Supply shifts left from S1 to S2 along an unchanged demand curve D1: price rises from P1 to P2 and quantity falls from Q1 to Q2.

A single demand curve D1 with no shift: a movement along it as price falls from P1 to P2 and quantity rises from Q1 to Q2.

Supply shifts right from S1 to S2 along an unchanged demand curve D1: price falls from P1 to P2 and quantity rises from Q1 to Q2.

Question 2/7

In the diagram below, point X shows the initial equilibrium in the market for orange juice, where the original supply and demand curves S and D cross. A severe frost destroys a large part of the orange harvest. At the same time, the price of apple juice rises sharply.

Which point shows the most likely new equilibrium in the market for orange juice?

Supply and demand diagram - Quantity on the horizontal axis (max 110), Price on the vertical axis (max 100). Lines shown: demand D1 (from 2,80 to 70,12); demand D (from 8,92 to 88,12); demand D2 (from 26,92 to 106,12); supply S2 (from 2,20 to 74,92); supply S (from 12,12 to 92,92); supply S1 (from 30,12 to 110,92). Equilibrium points: X at the intersection of S and D (price P1, quantity Q1); J at the intersection of S1 and D1 (price 32, quantity 50); K at the intersection of S1 and D2 (price 50, quantity 68); L at the intersection of S2 and D (price 59, quantity 41); M at the intersection of S2 and D2 (price 68, quantity 50); N at the intersection of S2 and D1 (price 50, quantity 32).

Point J Point K Point L Point M Point N

Question 3/7

In each of the diagrams below, S1 and D1 show the original supply and demand curves for coffee pods, while S2 and D2 show any shifts of these curves.

Which diagram best shows the effects of a sharp rise in the price of coffee machines and the introduction of a new automated packing line that cuts the cost of making coffee pods?

Demand shifts right from D1 to D2 and supply shifts left from S1 to S2.

Demand shifts left from D1 to D2 and supply shifts left from S1 to S2.

Demand shifts left from D1 to D2 and supply shifts right from S1 to S2.

Demand shifts left from D1 to D2; supply stays at S1 (no S2).

Demand shifts right from D1 to D2 and supply shifts right from S1 to S2.

Question 4/7

A fungal disease destroys a large part of the world's cocoa crop. Over the following year, the price of cocoa beans rises sharply and the quantity bought and sold falls.

Which of the diagrams below best represents what happened in the market for cocoa beans?

Supply shifts left from S1 to S2 and demand also shifts left from D1 to D2 by the same amount: price unchanged (P1 = P2) and quantity falls.

Demand shifts left from D1 to D2 along an unchanged (steep) supply curve S1: price falls from P1 to P2 and quantity falls from Q1 to Q2.

Question 5/7

In a university city, new blocks of student flats are built every year. However, the number of students wanting to rent a flat is growing even faster.

Which of the diagrams below best summarises what is happening in the market for student flats?

Demand shifts right a long way (D1 to D2) and supply shifts right a shorter way (S1 to S2): price rises from P1 to P2 and quantity rises from Q1 to Q2.

Demand shifts right (D1 to D2) and supply shifts left (S1 to S2): price rises steeply from P1 to P2 while quantity rises only a little.

Demand and supply both shift right by the same amount: price unchanged (P1 = P2), quantity rises from Q1 to Q2.

Demand shifts right (D1 to D2) along an unchanged supply curve S1: price rises from P1 to P2 and quantity rises from Q1 to Q2.

Supply shifts right a long way (S1 to S2) and demand shifts right a shorter way (D1 to D2): price falls from P1 to P2 and quantity rises from Q1 to Q2.

Question 6/7

The diagram below shows the market for drinks sold in single-use plastic bottles. The government introduces a tax on each bottle sold, which shifts the supply curve from S1 to S2.

Supply and demand diagram - Quantity (thousands of bottles per week) on the horizontal axis (max 100), Price (£) on the vertical axis (max 100). Lines shown: supply S1 (from 10,26 to 100,80); supply S2 (from 5,47 to 90,98); demand D (from 10,90 to 92,8). Equilibrium points: Y at the intersection of S2 and D (price 1.30, quantity 35); X at the intersection of S1 and D (price 1.00, quantity 50). Point marked on a line: on S1 at price 0.82, quantity 35.

How much tax revenue does the government collect each week?

£6,300 £10,500 £16,800 £24,000 £45,500

Question 7/7

A country produces two types of goods: fish and manufactured goods. Over several years, overfishing has reduced the stocks of fish in its coastal waters. Over the same period, new robotic technology has raised productivity in its factories. As a result, the country's production possibility frontier shifts from XX to YY.

Which of the diagrams below best shows this change?

PPF shifts inward on both axes: YY lies entirely inside XX (50 vs 70 on each axis).

PPF shifts out on both axes, further along the fish axis: YY meets the manufactured goods axis beyond XX (90 vs 70) and the fish axis well above it (115 vs 70).

PPF pivots the wrong way: YY meets the fish axis above XX (100 vs 70) but the manufactured goods axis inside it (50 vs 70), so the two frontiers cross.

PPF moves in on the fish axis and out on the manufactured goods axis: YY meets the fish axis below XX (45 vs 70) and the manufactured goods axis beyond it (105 vs 70), so the two frontiers cross.

PPF shifts out on both axes, further along the manufactured goods axis: YY meets the fish axis above XX (90 vs 70) and the manufactured goods axis well beyond it (115 vs 70).