AQA GCSE · Economics 8136

Intermarket relationships: Practice Questions

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

10 questions23 marksFree, no account

Question 1

1 mark

Which of the following best describes the relationship between two goods where an increase in the price of one leads to an increase in the demand for the other?

Question 2

1 mark

In the market for printers and ink cartridges, if the price of printers falls significantly, what is the most likely effect on the market for ink cartridges?

Question 3

1 mark

Consider the intermarket relationship between natural gas and electricity, where natural gas is a major input (factor of production) for electricity generation.

If the global price of natural gas rises significantly due to a supply shortage, what is the most likely impact on the product market for electricity?

Question 4

1 mark

Tea and coffee are often considered substitute goods. If the supply of tea decreases significantly due to a poor harvest, leading to a higher price for tea, what is the most likely impact on the market for coffee?

Question 5

1 mark

Consider the intermarket relationship between laptop computers and computer software. If the price of laptop computers increases significantly, what is the most likely sequence of events in the software market?

Question 6

2 marks

Using the concept of intermarket relationships, state the likely effect on the demand for tennis rackets if the price of tennis balls increases significantly.

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

Question 7

4 marks

Assume that beef and lamb are substitute goods. If a disease reduces the supply of beef, leading to a rise in its price, explain the resulting impact on the demand and price for lamb.

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Question 8

5 marks

Analyze the intermarket relationship between the market for new houses and the market for bricklayers. If the demand for new houses shifts to the right, how does this affect the demand for bricklayers and their equilibrium wage rate?

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Question 9

3 marks

A local council decides to significantly increase the price of all public car parking spaces in the city centre.

a) Define what is meant by complementary goods.
b) Using the concept of intermarket relationships, explain the likely impact of this price increase on the demand for local bus travel, assuming buses are a substitute for driving.

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

Question 10

4 marks

Consider the markets for beef and leather. Leather is a by-product of beef production, meaning they are in joint supply.

a) If the global demand for beef increases, explain the effect on the supply of leather.
b) Illustrate how this change in the supply of leather will affect the equilibrium price of leather goods, such as shoes.

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

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