Pearson Edexcel International GCSE Economics: Demand, supply and equilibrium (4EC1) – 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.

These questions follow section 1.1.3, Demand, supply and market equilibrium, in the Pearson Edexcel International GCSE Economics specification (code 4EC1), Issue 3 of February 2026. The qualification is single tier. All numbers, countries and firms are made up for illustration. Revise first with the study guide and revision notes. Other links: the course hub, the checklist and the free diagnostics.

Questions

1. Define demand. [2]

2. For each event below, say whether it moves buyers along the curve or moves the curve itself, for tablet computers in Country B, and give the direction. Tablets are a normal good. (a) The price of tablets falls. [1] (b) The price of a rival make of tablet rises. [1] (c) Incomes in Country B fall. [1] (d) A successful advertising campaign runs. [1]

3. The price of video games rises. Explain the effect on demand for games consoles. [3]

4. The number of people aged over 65 in Town G rises from 15 000 to 18 000. (a) Calculate the percentage increase. [2] (b) Explain the effect on demand for mobility aids. [2]

5. A small bakery in Town D supplies loaves as shown.

Price per loaf	1.0	1.5	2.0	2.5	3.0
Loaves supplied	40	70	100	130	160

(a) Calculate the percentage change in quantity supplied when the price rises from 2.0 to 2.5. [2] (b) State whether this is a movement along the curve or a shift. [1] (c) Flour becomes dearer and the bakery supplies 30 fewer loaves at every price. State the new quantity supplied at a price of 2.0 and explain the change in the curve. [3]

6. Explain how a subsidy and a new machine would each affect the supply of rice. [4]

7. The table shows the market for monthly bus passes in Town E.

Price	20	30	40	50	60
Quantity demanded	700	600	500	400	300
Quantity supplied	200	350	500	650	800

(a) State the equilibrium price and quantity. [2] (b) Calculate the excess demand at a price of 30. [2] (c) Calculate the excess supply at a price of 50 as a percentage of the quantity demanded at that price. [2]

8. Draw a diagram, described in words or as a sketch, to show the effect on the market for umbrellas of an unusually wet season. [4]

9. In Country C, a government gives a subsidy of 5 per lamp to makers of solar lamps. The table shows the market before and after the subsidy.

Price	16	18	20	22	24
Quantity demanded	420	360	300	240	180
Supply before subsidy	220	260	300	340	380
Supply with subsidy	320	360	400	440	480

(a) Identify the starting price and quantity, before any subsidy. [2] (b) Read off the price and quantity once the subsidy is in place. [2] (c) By what percentage does the quantity traded change? [2]

10. The market for a second-hand textbook in City F is shown below. The current price is 30.

Price	20	24	26	28	30
Quantity demanded	300	260	240	220	200
Quantity supplied	200	260	290	320	350

Explain how market forces would remove the imbalance. [5]

11. In Country A, the equilibrium price of rice is 12 and the quantity is 600 tonnes. A drought cuts supply by 120 tonnes at every price. At the same time rising incomes raise demand by 60 tonnes at every price. Working shows that demand alone would give price 12.5 and quantity 635, supply alone would give price 13 and quantity 550, and both together give price 13.5 and quantity 585. Evaluate whether both the price and the quantity of rice will rise. [8]

Answers

1. How much buyers will purchase, being ready [1] and able to pay at each possible price over a stated time [1]. [2] Examiner insight: Being ready to buy alone describes a want, so include the ability to pay as well as the price-and-period idea.

2. (a) Movement along the curve, with quantity demanded rising [1]. (b) Shift right, as buyers switch to this tablet [1]. (c) Shift left, as fewer can afford them [1]. (d) Shift right, as more people want them at each price [1]. [4] Examiner insight: Give both the type of change and the direction, because naming only a shift does not show which way.

3. Games and consoles are complements, used together [1]. A dearer game raises the total cost of using a console [1]. Demand for consoles decreases (shifts left): fewer are bought at each price [1]. [3] Examiner insight: Name the relationship, add the link in the chain, and finish with the curve and its direction.

4. (a) Increase = 18 000 − 15 000 = 3 000, then 3 000 ÷ 15 000 [1] × 100 = 20% [1]. [2] (b) More potential buyers of mobility aids [1], so demand shifts right and more are wanted at each price [1]. [2] Examiner insight: Divide by the starting figure, and keep the effect on the whole curve rather than a single price.

5. (a) (130 − 100) ÷ 100 [1] × 100 = 30% [1]. [2] (b) A movement along the curve, because the bakery’s own price changed [1]. [1] (c) 100 − 30 = 70 [1]. Supply decreases and the curve shifts left [1], because dearer flour raises the cost of production, so each loaf earns less profit [1]. [3] Examiner insight: Say that the cause is not the loaf’s own price, and link the cost change to the shift in a full sentence.

6. Subsidy: a payment per unit lowers the cost of each unit [1], so farmers supply more at each price and supply shifts right [1]. New machine: more output per worker lowers the cost per tonne [1], so supply shifts right [1]. [4] Examiner insight: Two factors need two separately developed points, each ending with a shift, and not a list of names.

7. (a) Quantities are equal at 500, so price 40 and quantity 500 [1] [1]. [2] (b) 600 − 350 [1] = 250 [1]. [2] (c) Excess supply = 650 − 400 = 250 [1]; 250 ÷ 400 × 100 = 62.5% [1]. [2] Examiner insight: Show the subtraction first and state which quantity is larger, and use the base the question names.

8. Axes labelled price and quantity of umbrellas [1]. Demand D and supply S drawn, crossing at equilibrium P and Q [1]. Demand shifts right to D1, as more umbrellas are wanted at every price [1]. New equilibrium P1 and Q1 are marked on the axes, both higher than P and Q [1]. [4] Examiner insight: A diagram earns points for labelled axes, curves and equilibria, so mark both original and new points on the axes.

9. (a) Price 20, quantity 300 [1] [1]. [2] (b) Demand equals supply at 360, price 18 and quantity 360 [1] [1]. [2] (c) (360 − 300) ÷ 300 [1] × 100 = 20% increase [1]. [2] Examiner insight: Read the right supply column, and write “increase” or “fall” with the percentage.

10. At 30, supply 350 exceeds demand 200, so there is excess supply of 150 [1]. Sellers cannot sell all their stock, so they cut prices [1]. As price falls, quantity demanded rises [1] and quantity supplied falls [1]. At 24 both are 260, the excess supply is zero and price stops falling [1]. [5] Examiner insight: Use the figures, and include both quantity responses, not just the price cut.

11. Demand alone: demand rises, so price rises 12 to 12.5 and quantity rises 600 to 635 [1]. Supply alone: supply falls, so price rises to 13 and quantity falls to 550 [1]. Together, price rises to 13.5, a rise of 12.5% [1], and quantity falls to 585, a fall of 2.5% [1]. So the claim is half right: price rises but quantity does not [1]. The quantity result depends on the size of the shifts: the supply fall of 120 outweighs the demand rise of 60 [1]. If the demand rise were larger than the supply fall, quantity would rise too [1]. Judgement: price rises in every case, so the safest conclusion is that price rises and quantity is uncertain, here falling slightly, and a drought may be temporary, so the effect may not last [1]. [8] Examiner insight: Evaluation needs a supported conclusion, so state which part of the claim holds and why, using the figures.

Where marks are usually lost

• Writing “demand falls” when only the good’s own price changed.
• Sliding along a curve for a non-price cause, or shifting it for a price change.
• Shifting the wrong curve, such as supply for a change in incomes.
• Mixing up substitutes and complements.
• Dividing by the new figure when calculating a percentage change.
• Subtracting in the wrong order for excess demand and excess supply.
• Leaving out axis labels, curve labels or the new equilibrium on a diagram.
• Stating the new price but not the new quantity.
• Giving an evaluation with no conclusion.

Next steps

• Re-read the revision notes and the study guide.
• Go to the Edexcel IGCSE Economics hub and the checklist.
• Try the all free 10-minute diagnostics.
• Book a free trial class.

Official syllabus

Pearson Edexcel International GCSE in Economics (4EC1) specification, Issue 3, February 2026, for first teaching September 2017, published by Pearson Education Limited, section 1.1.3.