GCSE ECONOMICS COMPREHENSIVE EXAM QUESTIONS
AND SOLUTIONS 2025/2026 GRADED A+
✔✔PASIFIC - Population - ✔✔- There can be three aspects to consider, size, age, and
gender.
- For example, as a population ages, there likely will be an increase in demand of the
goods older people like.
✔✔PASIFIC - Advertising - ✔✔- Advertising, or marketing can increase the demand for
a product.
- The more marketing, the more demand.
✔✔PASIFIC - Substitutes - ✔✔- These are goods and services that can make up for/be
used in place of one another.
- For example, if the price for the Xbox One increases, demand for the PS4 will
increase.
✔✔PASIFIC - Income - ✔✔- As income for people increases, they have more
purchasing power and demand for goods increases.
- Also, if income is unevenly distributed and poverty increases, demand for basic
products will increase.
✔✔PASIFIC - Fashions - ✔✔- Over time, the taste of consumers change, so some
products lose demand as become unpopular and other products quickly increase in
demand.
- iPhone 3 to the iPhone 7
✔✔PASIFIC - Interest Rates - ✔✔- As interest rates, people are more likely to save
more and spend less, an vice versa.
✔✔PASIFIC - Complements - ✔✔- These are goods and services that go together, like
fish and chips. If demand goes up for one, then so does the demand for the other.
✔✔Rightward shift of the demand curve - ✔✔An INCREASE in demand is shown by a
rightward shift of the demand curve, as both the price and quantity increase.
✔✔Leftward shift of the demand curve - ✔✔A DECREASE in demand is shown by a
leftward shift of demand curve, as both the price and quantity decrease.
,✔✔Price Elasticity of Demand - ✔✔The responsiveness of quantity demanded to a
change in price.
PED = %Q/%P
There are two types of demand curves:
- Elastic (PED more than 1)
- Inelastic (PED less than 1)
✔✔Inelastic Demand Curve - ✔✔When the percentage change in price leads to a
SMALLER percentage change in quantity demanded.
PED is less than 1.
Using the formula:
PED = Qd / P
= LARGE / SMALL
=<1
✔✔Elastic Demand Curve - ✔✔When a given percentage change in price leads to a
LARGER percentage change in quantity demanded.
PED is more than 1.
Using the formula:
PED = Qd / P
= SMALL / LARGE
=>1
✔✔Perfectly Inelastic Demand Curve - ✔✔A completely vertical demand curve showing
price having no effect on quantity demanded.
The PED is 0.
(PED = 0 / %P)
✔✔Perfectly Elastic Demand Curve - ✔✔A completely horizontal demand curve
showing an increase in price causing no quantity to be demanded.
The PED is ∞.
(PED = %Qd / 0)
, ✔✔Importance of PED for CONSUMERS - ✔✔- Consumers purchasing goods with
inelastic demand are affected by this, as governments know that they can impose taxes
on the product and not suffer drawbacks as consumers will continue to buy the product.
- e.g. cigarettes
- This is also used by railway companies, which raise prices during rush hour, when
tickets have inelastic demand.
✔✔Importance of PED for PRODUCERS - ✔✔- PED allows producers to make
decisions based on the elasticity on the product they are supplying.
- If the product is price inelastic, producers can raise the price, as the decease in
quantity demanded is less than the raise and therefore more revenue is earned.
- If the product is price elastic, producers lower the price, as the increase in quantity
demanded is greater than the decrease in price, so more revenue is earned.
✔✔Price Discrimination - ✔✔The division of consumers into groups based on how much
they will pay for a good.
e.g. Peak times and off-peak times
✔✔Primary Product Dependency - ✔✔- This is where developing countries rely heavily
on the exports of primary products such as ores or agricultural goods.
- This is bad as primary products are unsustainable in the long term, and a fall in price
can mean the country is heavily affected.
✔✔Supply - ✔✔The ability and willingness of firms to provide goods and services at
each price in a given time period.
✔✔Law of Supply - ✔✔For most products, the quantity supplied varies directly with its
price.
✔✔Individual Supply - ✔✔The supply of a good or service by an individual producer
✔✔Market Supply - ✔✔The total supply of a good or service as a result of adding
together all individual producer's supplies.
✔✔Supply Curve - ✔✔P = Price
Q = Quantity Supplied
S = Supply
As price increases, quantity supplied increases.
AND SOLUTIONS 2025/2026 GRADED A+
✔✔PASIFIC - Population - ✔✔- There can be three aspects to consider, size, age, and
gender.
- For example, as a population ages, there likely will be an increase in demand of the
goods older people like.
✔✔PASIFIC - Advertising - ✔✔- Advertising, or marketing can increase the demand for
a product.
- The more marketing, the more demand.
✔✔PASIFIC - Substitutes - ✔✔- These are goods and services that can make up for/be
used in place of one another.
- For example, if the price for the Xbox One increases, demand for the PS4 will
increase.
✔✔PASIFIC - Income - ✔✔- As income for people increases, they have more
purchasing power and demand for goods increases.
- Also, if income is unevenly distributed and poverty increases, demand for basic
products will increase.
✔✔PASIFIC - Fashions - ✔✔- Over time, the taste of consumers change, so some
products lose demand as become unpopular and other products quickly increase in
demand.
- iPhone 3 to the iPhone 7
✔✔PASIFIC - Interest Rates - ✔✔- As interest rates, people are more likely to save
more and spend less, an vice versa.
✔✔PASIFIC - Complements - ✔✔- These are goods and services that go together, like
fish and chips. If demand goes up for one, then so does the demand for the other.
✔✔Rightward shift of the demand curve - ✔✔An INCREASE in demand is shown by a
rightward shift of the demand curve, as both the price and quantity increase.
✔✔Leftward shift of the demand curve - ✔✔A DECREASE in demand is shown by a
leftward shift of demand curve, as both the price and quantity decrease.
,✔✔Price Elasticity of Demand - ✔✔The responsiveness of quantity demanded to a
change in price.
PED = %Q/%P
There are two types of demand curves:
- Elastic (PED more than 1)
- Inelastic (PED less than 1)
✔✔Inelastic Demand Curve - ✔✔When the percentage change in price leads to a
SMALLER percentage change in quantity demanded.
PED is less than 1.
Using the formula:
PED = Qd / P
= LARGE / SMALL
=<1
✔✔Elastic Demand Curve - ✔✔When a given percentage change in price leads to a
LARGER percentage change in quantity demanded.
PED is more than 1.
Using the formula:
PED = Qd / P
= SMALL / LARGE
=>1
✔✔Perfectly Inelastic Demand Curve - ✔✔A completely vertical demand curve showing
price having no effect on quantity demanded.
The PED is 0.
(PED = 0 / %P)
✔✔Perfectly Elastic Demand Curve - ✔✔A completely horizontal demand curve
showing an increase in price causing no quantity to be demanded.
The PED is ∞.
(PED = %Qd / 0)
, ✔✔Importance of PED for CONSUMERS - ✔✔- Consumers purchasing goods with
inelastic demand are affected by this, as governments know that they can impose taxes
on the product and not suffer drawbacks as consumers will continue to buy the product.
- e.g. cigarettes
- This is also used by railway companies, which raise prices during rush hour, when
tickets have inelastic demand.
✔✔Importance of PED for PRODUCERS - ✔✔- PED allows producers to make
decisions based on the elasticity on the product they are supplying.
- If the product is price inelastic, producers can raise the price, as the decease in
quantity demanded is less than the raise and therefore more revenue is earned.
- If the product is price elastic, producers lower the price, as the increase in quantity
demanded is greater than the decrease in price, so more revenue is earned.
✔✔Price Discrimination - ✔✔The division of consumers into groups based on how much
they will pay for a good.
e.g. Peak times and off-peak times
✔✔Primary Product Dependency - ✔✔- This is where developing countries rely heavily
on the exports of primary products such as ores or agricultural goods.
- This is bad as primary products are unsustainable in the long term, and a fall in price
can mean the country is heavily affected.
✔✔Supply - ✔✔The ability and willingness of firms to provide goods and services at
each price in a given time period.
✔✔Law of Supply - ✔✔For most products, the quantity supplied varies directly with its
price.
✔✔Individual Supply - ✔✔The supply of a good or service by an individual producer
✔✔Market Supply - ✔✔The total supply of a good or service as a result of adding
together all individual producer's supplies.
✔✔Supply Curve - ✔✔P = Price
Q = Quantity Supplied
S = Supply
As price increases, quantity supplied increases.
