IGCSE Edexel Curriculum

Rapid Revision (Chapters 1-10)

1. What is a market?
2. How does a market system operate?
3. What are the 2 main functions of a market system? Explain
4. What is meant by price mechanism?
5. What is meant by demand or effective demand?
6. What is the relationship between Price (P) and Quantity demanded (Qd)?
7. Why does a demand curve slopes downwards?
8. Distinguish between a movement and the shift in the demand curve?
9. Name the main factors that affect the demand for products?
10. Show the effect on demand when these factors change?
Eg: What happens to demand when income increases/decreases
11. Define normal and inferior goods.
12. What is meant by Substitutes and Compliments?
13. Show the following effect on a demand curve, explaining the change.
I. The effect on demand for bread, when price of bun increases.
II. When there is a sharp cut in personal income
III. The effect on demand for camera accessories, when the price of camera reduces?
IV. The effect on demand for soap when price of washing powder increases.
V. The effect on demand for rice when price of rice decreases
VI. Demand for sugar when theres increased awareness of the health problems caused by it
VII. Demand for houses when interest rate increases
VIII. Demand for home nursing when the elderly population decreases
IX. Demand for Dove soap when there is increased advertisements regarding it.

14. What is meant by Supply?

15. What is the relationship between Price and Quantity Supplied?
16. Why does a supply curve slopes upwards?
17. What is meant by fixed supply?
18. What are the main factors that affect supply?
19. Show the effect on demand when these factors change?
20. Illustrate the following when in a supply curve with valid reasons.
I. The change in supply when an indirect tax is imposed on price of rice
II. Improvement in technology in the mobile phone industry
III. The supply of oil when theres a civil war in countries with oil wells.
IV. The supply of tomatoes when the price of potatoes increase
V. The wages the soft drink industry changes due to pressure of trade unions.
VI. Government provide subsidies for local farmers who cultivate wheat
VII. The cost of machinery in plastic manufacturing industry decreases.
21. Distinguish between a movement in the supply curve and a shift in the supply curve?
22. Define Specific tax and advalorem tax and show the effect of these on Supply?
23. What is meant by a Subsidy?
24. Define market Equlibrium price?
25. What is total revenue? How is it calculated?
26. Explain how shifts in demand and supply affect the equilibrium price?
27. Explain excess demand and excess supply.
28. Define PED. (PRICE ELASTICITY OF DEMAND). How is it calculated?
29. Explain using diagrams and values ,
Elastic demand
Inelastic demand
Unitary elastic demand
Perfectly elastic demand
Perfectly inelastic demand
30. State and explain the factors affecting PED?
31. Define PES.(PRICE ELASTICITY OF SUPPLY).How is it calculated?
a. Explain using diagrams and values ,
Elastic supply
Inelastic supply
Unitary elastic supply
Perfectly elastic supply
Perfectly inelastic supply
32. State and explain the factors affecting supply.
33. What is income elasticity of demand (YED)? How is it calculated?
34. Explain the types of YED.
35. Factors affecting income elasticity of demand?
36. Explain discretionary expenditure?
37. What is the link between price elasticity and total revenue?
38. Fill in the following table.
Price elasticity Value of Price change Total revenue Relationship
elaticity change
Increase
Elastic
Decrease Opposite
Elastic
Increase
Inelastic
Decrease Positive
Inelastic
Increase/decrease
Unitary
Increase Increase Positive
*Perfectly Decrease Decrease
inelastic
39. What is the importance of Income Elasticity of Demand?