Cambridge IGCSE · Economics (0455)

Demand: Practice Questions

5 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on Demand.

9 questions19 marksFree, no account

Question 1

1 mark

Which of the following is most likely to cause an extension in demand for a specific brand of smartphone?

Question 2

1 mark

Which factor would cause the demand curve for a normal good to shift to the left?

Question 3

1 mark

An economy is experiencing a deep recession, causing average household incomes to fall. At the same time, the demand for canned vegetables increases.

What does this suggest about the nature of canned vegetables in this economy, and how would this be shown on a diagram?

Question 4

1 mark

Which statement best describes the law of demand?

Question 5

1 mark

In the market for coffee beans, the following events occur simultaneously:
1. The price of tea (a substitute) increases significantly.
2. A new medical report suggests that coffee consumption improves heart health.

How would these events be illustrated on a demand curve diagram for coffee beans?

Question 6

3 marks

Define the term demand and identify two non-price factors that could cause a shift in the demand curve.

Write your answer out first, then check it against the worked solution.

Question 7

3 marks

A consumer’s demand for fresh milk increases when their income rises. Explain whether fresh milk is a normal good or an inferior good in this context.

Write your answer out first, then check it against the worked solution.

Question 8

5 marks

Consider the market for smartphone apps. If there is a simultaneous decrease in the price of smartphones and an increase in the number of mobile phone users, analyze the likely impact on the position of the demand curve for apps.

Write your answer out first, then check it against the worked solution.

Question 9

3 marks

(a) Define the term demand.

(b) Explain the difference between an extension in demand and an increase in demand. Use your knowledge of price and non-price factors to support your explanation.

Write your answer out first, then check it against the worked solution.

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