Year 12 AQA Economics
(Micro) exam with solutions
2024\2025.
The Law of Demand - Answer consumers will buy more of a good when
its price is lower and less when its price is higher
The Law of Supply - Answer producers offer more of a good as its price
increases and less as its price falls
Equilibrium Price - Answer the price at which the quantity demanded
equals the quantity supplied
,Excess Supply - Answer the amount by which quantity supplied exceeds
quantity demanded when the price of a good exceeds the equilibrium
price
Surplus - Answer A situation in which quantity supplied is greater than
quantity demanded
Excess Demand - Answer The situation that exists when demand is
greater than supply.
Deficit - Answer A situation in which quantity supplied is less than the
quantity demanded
Economics - Answer A social science that studies how people seek to
satisfy their needs and wants by making choices
Price Elasticity of Demand - Answer a measure of how much the
quantity demanded of a good responds to a change in the price of that
good.
Income Elasticity of Demand - Answer a measure of the responsiveness
of the quantity demanded to changes in income.
, Cross Price Elasticity of Demand - Answer measures the response of
demand for one good to changes in the price of another good
PED Formula - Answer % change in quantity demanded / % change in
price
YED Formula - Answer % change in quantity demanded / % change in
income
XED Formula - Answer % change in quantity demanded of good X / %
change in price of good Y
Luxury Good - Answer a good with an income elasticity greater than 1
for which demand rises by a greater amount than the rise in income.
Normal Good - Answer a good for which the demand increases as
income rises and decreases as income falls
Veblen Good - Answer A good with a positively sloped demand curve.
As price increases people buy more of these goods to demonstrate
their social status.
Inferior Good - Answer a good for which, other things being equal, an
increase in income leads to a decrease in demand
(Micro) exam with solutions
2024\2025.
The Law of Demand - Answer consumers will buy more of a good when
its price is lower and less when its price is higher
The Law of Supply - Answer producers offer more of a good as its price
increases and less as its price falls
Equilibrium Price - Answer the price at which the quantity demanded
equals the quantity supplied
,Excess Supply - Answer the amount by which quantity supplied exceeds
quantity demanded when the price of a good exceeds the equilibrium
price
Surplus - Answer A situation in which quantity supplied is greater than
quantity demanded
Excess Demand - Answer The situation that exists when demand is
greater than supply.
Deficit - Answer A situation in which quantity supplied is less than the
quantity demanded
Economics - Answer A social science that studies how people seek to
satisfy their needs and wants by making choices
Price Elasticity of Demand - Answer a measure of how much the
quantity demanded of a good responds to a change in the price of that
good.
Income Elasticity of Demand - Answer a measure of the responsiveness
of the quantity demanded to changes in income.
, Cross Price Elasticity of Demand - Answer measures the response of
demand for one good to changes in the price of another good
PED Formula - Answer % change in quantity demanded / % change in
price
YED Formula - Answer % change in quantity demanded / % change in
income
XED Formula - Answer % change in quantity demanded of good X / %
change in price of good Y
Luxury Good - Answer a good with an income elasticity greater than 1
for which demand rises by a greater amount than the rise in income.
Normal Good - Answer a good for which the demand increases as
income rises and decreases as income falls
Veblen Good - Answer A good with a positively sloped demand curve.
As price increases people buy more of these goods to demonstrate
their social status.
Inferior Good - Answer a good for which, other things being equal, an
increase in income leads to a decrease in demand
