Cambridge IGCSE Economics: Demand and supply: curves, movements and shifts (0455) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

The questions below cover sections 2.3 (Demand) and 2.4 (Supply) of the 2026 Cambridge IGCSE Economics (0455) syllabus. All markets, firms and figures here are made up for practice, and prices are in currency units (cu).

Read the study guide or the revision notes. Find the unit in context through the course hub at Cambridge IGCSE Economics and the printable checklist. To check your level quickly, see the free diagnostics.

Questions

1. Define demand. [2]

2. For each event, state whether it causes a movement along a curve or a shift of a curve, and name the curve (demand or supply) and the term for the change, in the market for bicycles.

(a) The price of bicycles falls. [1] (b) The price of cycle helmets, which are bought with bicycles, rises sharply. [1] (c) A new technology cuts the cost of making bicycle frames. [1] (d) The price of bicycles rises, and firms respond. [1]

3. The table shows the daily demand for sandwiches at a school canteen from two groups of customers. All figures are illustrative.

Price (cu)	2	3	4	5	6
Students	50	40	30	20	10
Staff	40	35	30	25	20

(a) Calculate market demand at each price. [2] (b) The price rises from 3 cu to 5 cu. Use the correct term to describe the change in demand and state the change in quantity. [2] (c) Calculate the percentage change in quantity demanded in part (b), to 1 decimal place. [2]

4. Town J has 240 identical households. At a price of 3 cu each household buys 2 loaves a day. The number of households rises by 10%.

(a) Calculate market demand before the change. [1] (b) Calculate market demand after the change. [2] (c) State the term for the change in demand at 3 cu. [1]

5. Explain why a rise in the price of butter shifts the demand curve for margarine to the right. [3]

6. Use the market demand from question 3. A gym opens next to the canteen and demand rises by 15 sandwiches at every price.

(a) Complete the new demand schedule. [2] (b) State the term for this change. [1] (c) Calculate the percentage increase in quantity demanded at 4 cu and at 6 cu. [2]

7. Define supply and explain why a supply curve slopes upward. [4]

8. The table shows the weekly supply of tea (in kg) from three growers at different prices. All figures are illustrative.

Price (cu)	2	3	4	5	6
Grower 1	20	30	40	50	60
Grower 2	0	10	20	30	40
Grower 3	10	10	20	20	30

(a) Calculate market supply at each price. [2] (b) The price falls from 6 cu to 4 cu. Name the movement and state the change in quantity. [2] (c) Calculate the percentage change in quantity supplied in part (b), to 1 decimal place. [2]

9. Explain two reasons why the supply of wooden chairs might increase. [4]

10. The table shows the supply of bottled water in Country A before a tax. The government then imposes an indirect tax of 2 cu per bottle. All figures are illustrative.

Price (cu)	3	4	5	6	7	8
Supply before tax	0	20	40	60	80	100

(a) Complete the schedule of supply after the tax. [3] (b) State the direction of the shift and the term for the change. [1] (c) Explain why the tax causes this shift. [2]

11. The table shows the market demand for electric fans in Country G. All figures are illustrative.

Price (cu)	20	30	40	50	60
Quantity demanded	500	400	300	200	100

(a) The price falls from 50 cu to 30 cu. State the term and the change in quantity demanded. [2] (b) A heatwave raises demand by 25% at every price. Complete the new schedule. [2] (c) Explain how a fall in the price of air-conditioning units could affect demand for fans. [3] (d) A shop sees sales rise from 300 to 400 fans. Give two different explanations, one a movement and one a shift, and say why sales figures alone cannot tell you which happened. [3]

12. The table shows the daily supply of tomatoes (kg) from three farms in Country H. All figures are illustrative.

Price (cu)	1	2	3	4	5
Farm P	10	20	30	40	50
Farm Q	0	10	20	30	40
Farm R	0	0	10	20	30

(a) Calculate market supply at each price. [2] (b) Farm Q installs irrigation and its supply rises by 50% at every price. Calculate the new market supply at each price. [3] (c) State the term for the change in market supply and calculate the percentage change at a price of 4 cu, to 1 decimal place. [2] (d) Explain two other conditions that could decrease the supply of tomatoes. [4]

Answers

1. Demand is how much of a good or service [1] buyers are ready and able to purchase at each price over a stated period [1]. [2] Examiner insight: A definition tends to gain credit when it includes both “willing and able” and the link to price; “what people want” on its own misses the point that demand needs money behind it.

2. (a) Movement along the demand curve [1]: an extension of demand. [1] (b) Shift of the demand curve for bicycles to the left [1]: a decrease in demand, because helmets are complements. [1] (c) Shift of the supply curve to the right [1]: an increase in supply. [1] (d) Movement along the supply curve [1]: an extension of supply. [1] Examiner insight: Naming the curve, the movement or shift and the term together is safest. A response that says “demand rises” for part (a) uses the wrong term, because it describes a shift and not an extension.

3. (a) Add the two columns at each price [1]: 90, 75, 60, 45, 30 [1]. [2] (b) The price rises, so quantity demanded falls from 75 to 45 [1]: a contraction of demand of 30 [1]. [2] (c) Percentage change = (45 − 75)/75 × 100 [1] = −40.0% [1]. [2] Examiner insight: In percentage change, the starting quantity is the divisor. Starting from 45 instead of 75 gives a different answer.

4. (a) 240 × 2 = 480 loaves [1]. [1] (b) New households = 240 × 1.10 = 264 [1]. Market demand = 264 × 2 = 528 loaves [1]. [2] (c) An increase in demand [1]. [1] Examiner insight: The price did not change, so the term is “increase”, not “extension”.

5. Butter and margarine are substitutes [1]. When butter becomes dearer, some buyers switch to margarine [1]. More margarine is wanted at every price, so the demand curve shifts to the right (an increase in demand) [1]. [3] Examiner insight: A chain of three links (relationship, buyer behaviour, effect on the curve) tends to be stronger than a one-line assertion.

6. (a) Add 15 to each market value [1]: 105, 90, 75, 60, 45 [1]. [2] (b) An increase in demand (the curve shifts to the right) [1]. [1] (c) At 4 cu: 15/60 × 100 = 25% [1]. At 6 cu: 15/30 × 100 = 50% [1]. [2] Examiner insight: The same shift is a bigger percentage where the original quantity is small.

7. Supply is how much of a good or service producers are ready and able to sell [1] at each price in a stated period [1]. A higher price brings more revenue per unit, so selling more is more profitable [1], and it may draw in new sellers or cover higher costs per unit as output grows [1]. [4] Examiner insight: Explaining the upward slope tends to gain credit when it ties a higher price to a firm’s incentive.

8. (a) Add the three columns [1]: 30, 50, 80, 100, 130 [1]. [2] (b) Quantity supplied falls from 130 to 80 [1]: a contraction of supply of 50 kg [1]. [2] (c) (80 − 130)/130 × 100 [1] = −38.5% [1]. [2] Examiner insight: A fall in price moves you along the same supply curve, so “contraction” is the term. The starting value is 130, not 80.

9. Any two developed reasons, worth two marks each. Example: lower costs of production, such as cheaper timber [1], so each firm can supply more at every price and the curve shifts right [1]. Better technology or new machines [1] raise output per worker, so more chairs are supplied at each price [1]. [4] Examiner insight: “Explain two” needs two separate causes each developed with a consequence. A change in the chair’s own price is not a valid reason, because it moves along the curve.

10. (a) New supply at price p equals old supply at p minus 2 [1]. At 3, 4 and 5 cu the new supply is 0 [1]. At 6, 7 and 8 cu it is 20, 40, 60 [1]. [3] (b) Leftward shift of the supply curve, called a decrease in supply [1]. [1] (c) A tax raises the cost of selling each bottle [1], so sellers need a higher price to supply the same quantity, or supply less at each price [1]. [2] Examiner insight: State the direction in words and give the cost reason.

11. (a) Quantity demanded rises from 200 to 400 [1]: an extension of demand of 200 [1]. [2] (b) 500 × 1.25 and so on [1]: 625, 500, 375, 250, 125 [1]. [2] (c) Air-conditioning units are substitutes for fans [1]. Cheaper units tempt buyers away from fans [1], so demand for fans decreases at every price and the curve shifts left [1]. [3] (d) Movement: the price of fans fell, so more were bought along the same curve (extension) [1]. Shift: demand increased because of another condition, such as a heatwave or an advert, so more fans were bought at the same price [1]. Sales show only the quantity sold, not the price or the conditions behind it [1]. [3] Examiner insight: Part (d) tends to gain credit when you name the evidence needed, such as the price at the time.

12. (a) Add the three farms [1]: 10, 30, 60, 90, 120 [1]. [2] (b) Farm Q’s new supply: 0, 15, 30, 45, 60 [1]. Add P and R to the new Q values [1]: 10, 35, 70, 105, 140 [1]. [3] (c) An increase in supply [1]. At 4 cu: (105 − 90)/90 × 100 = 16.7% [1]. [2] (d) Any two developed conditions, worth two marks each. Example: a rise in fertiliser prices [1] raises costs, so farms supply less at each price and the curve shifts left [1]. A drought or flood [1] cuts yields, so less is available at each price [1]. [4] Examiner insight: In part (b) the 50% applies only to Farm Q. Applying it to the whole market is a frequent slip. Show the new column for Farm Q before the totals.

Where marks are usually lost

• Using “increase in demand” for a price fall.
• Not naming the curve that moves, or the direction of the shift.
• Mixing up the base of a percentage change. Use the original quantity.
• Applying a percentage change to the whole market when it affects only one firm or group.
• Treating a tax as an increase in supply.
• Adding prices instead of quantities when aggregating.

Next steps

• Review the revision notes and study guide.
• Open the course hub, Cambridge IGCSE Economics, and the printable checklist.
• Check where you stand with the free 10-minute diagnostics.
• Or book a free trial class.

Official syllabus

Syllabus document: Cambridge IGCSE Economics (0455), examination in 2026, version 2, sections 2.3 and 2.4. Publisher: Cambridge University Press & Assessment (Cambridge International Education).