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Price changes and their effects on markets
Practice Questions

20 CIE IGCSE Economics questions on Price changes and their effects on markets, each with instant feedback and a full examiner-style mark scheme.

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Question 1 · 1 mark · Difficulty 1/3

What is the most likely effect of an increase in the price of coffee on the demand for tea, assuming tea and coffee are substitutes?

  1. The demand curve for tea shifts to the left
  2. The demand curve for tea shifts to the right
  3. There is a movement along the demand curve for tea
  4. The supply curve for tea shifts to the right
Show answer & explanation
✓ Answer: BThe demand curve for tea shifts to the right
Award 1 mark for identifying that the demand curve for tea shifts to the right. When the price of coffee rises, consumers switch to tea as a substitute, increasing the demand for tea at all price levels. A is incorrect because demand for a substitute increases, not decreases. C is incorrect because a change in the price of a related good causes a shift, not a movement along the curve. D is incorrect because this affects demand, not supply.
Question 2 · 1 mark · Difficulty 2/3

In 2023, the government of Country X removed a subsidy on wheat production. Which diagram correctly shows the effect on the wheat market? [Diagram options showing supply and demand curves with different shifts]

  1. Supply curve shifts left; equilibrium price rises; equilibrium quantity falls
  2. Supply curve shifts right; equilibrium price falls; equilibrium quantity rises
  3. Demand curve shifts left; equilibrium price falls; equilibrium quantity falls
  4. Demand curve shifts right; equilibrium price rises; equilibrium quantity rises
Show answer & explanation
✓ Answer: ASupply curve shifts left; equilibrium price rises; equilibrium quantity falls
Award 1 mark for identifying that removing a subsidy increases production costs, shifting the supply curve to the left. This results in a higher equilibrium price and lower equilibrium quantity. B is incorrect because removing a subsidy reduces supply, not increases it. C is incorrect because subsidies affect supply, not demand. D is incorrect because the demand curve is not directly affected by producer subsidies.
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20 questions · 25 min · free

CIE IGCSE Economics: Price changes and their effects on markets FAQ

How many CIE IGCSE Economics questions on Price changes and their effects on markets are there on Kramizo?
Kramizo currently has 20 exam-board-aligned practice questions on Price changes and their effects on markets for CIE IGCSE Economics, with new questions added every week. Each question gives you instant feedback and a full examiner-style mark scheme that tells you exactly what would earn marks on a real CIE paper. The questions span the full difficulty range — from straightforward recall (level 1) right up to multi-step reasoning and evaluation (level 3) — so the bank works for first-pass revision and final exam-week stress testing alike.
Is Kramizo free for CIE IGCSE students preparing for Economics?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Price changes and their effects on markets practice with other Economics topics or even switch to a totally different CIE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Price changes and their effects on markets questions aligned to the official CIE IGCSE Economics syllabus?
Every question is written against the published CIE IGCSE Economics specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CIE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CIE.
How is Price changes and their effects on markets typically tested on CIE IGCSE Economics papers?
Price changes and their effects on markets appears across multiple question types on real CIE IGCSE Economics papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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