AQA ECONOMICS A LATEST 2026 EXAM QUESTIONS AND
ANSWERS RATED A+
✔✔Cross-elasticity of Demand (XED) - ✔✔Measures the extent to which the demand
for a good changes in response to a change in the price of another good
✔✔XED Formula - ✔✔%change in Quantity Demanded of Good A / %change in Price of
Good B
✔✔Goods are substitutes - ✔✔XED>0
✔✔Goods are complements - ✔✔XED<0
✔✔Profit - ✔✔The difference between total sales revenue and total costs of production
✔✔Profit - ✔✔Total revenue - Total costs of production
✔✔Total Revenue - ✔✔price of good x quantity sold
✔✔Total Revenue - ✔✔The money a firm receives from selling its output
✔✔Conditions of supply - ✔✔determinants of supply other than the good's own price
that fix the position of the supply curve
✔✔Conditions of supply - ✔✔Costs of Production
Technical Progress
Taxes imposed on firms
Subsidies
✔✔Price Elasticity of Supply (PES) - ✔✔Measures the extent to which the supply of a
good changes in response to a change in the price of that good
✔✔PES Formula - ✔✔Percentage change in quantity supplied / percentage change in
price
✔✔Factors determining PES - ✔✔The length of production period
The availability of spare capacity
The ease of accumulating stocks
The ease of switching between alternative production methods
The number of firms in the market
The ease of entering the market
Time
, ✔✔Market Equilibrium - ✔✔Occurs when planned demand = planned supply and the
demand curve crosses the supply curve
✔✔Market Disequilibrium - ✔✔Exists at any other price that the equilibrium price. Here
there is either excess demand or excess supply in the market
✔✔Excess Supply - ✔✔When firms wish to sell more than consumers wish to buy, with
the price above the equilibrium
✔✔Excess Demand - ✔✔When consumers wish to buy more than firms wish to sell,
with the price below the equilibrium price
✔✔Joint Supply - ✔✔When one good is produced, another good is also produced from
the same raw materials
✔✔Competing Supply - ✔✔When raw materials are used to produce one good, they
cannot be used to produce another good
✔✔Complementary Goods - ✔✔Goods which are in joint demand, or a good which is
demanded at the same time as another good
✔✔Substitute Goods - ✔✔Goods which are in competing demand, or a good which can
be used in place of another good
✔✔Composite Demand - ✔✔Demand for a good which has more than one use
✔✔Derived Demand - ✔✔Demand for a good which is an input into the production of
another good
✔✔Short-run Production - ✔✔Occurs when a firm adds variable factors of production to
fixed factors of production
✔✔Long-run Production - ✔✔Occurs when a firm changes the scale of all the factors of
production
✔✔Productivity - ✔✔Output per unit of input
✔✔Labour Productivity - ✔✔Output per worker
✔✔Capital Productivity - ✔✔Output per unit of capital
✔✔Productivity Gap - ✔✔The difference between labour productivity in the UK and
other developed economies
ANSWERS RATED A+
✔✔Cross-elasticity of Demand (XED) - ✔✔Measures the extent to which the demand
for a good changes in response to a change in the price of another good
✔✔XED Formula - ✔✔%change in Quantity Demanded of Good A / %change in Price of
Good B
✔✔Goods are substitutes - ✔✔XED>0
✔✔Goods are complements - ✔✔XED<0
✔✔Profit - ✔✔The difference between total sales revenue and total costs of production
✔✔Profit - ✔✔Total revenue - Total costs of production
✔✔Total Revenue - ✔✔price of good x quantity sold
✔✔Total Revenue - ✔✔The money a firm receives from selling its output
✔✔Conditions of supply - ✔✔determinants of supply other than the good's own price
that fix the position of the supply curve
✔✔Conditions of supply - ✔✔Costs of Production
Technical Progress
Taxes imposed on firms
Subsidies
✔✔Price Elasticity of Supply (PES) - ✔✔Measures the extent to which the supply of a
good changes in response to a change in the price of that good
✔✔PES Formula - ✔✔Percentage change in quantity supplied / percentage change in
price
✔✔Factors determining PES - ✔✔The length of production period
The availability of spare capacity
The ease of accumulating stocks
The ease of switching between alternative production methods
The number of firms in the market
The ease of entering the market
Time
, ✔✔Market Equilibrium - ✔✔Occurs when planned demand = planned supply and the
demand curve crosses the supply curve
✔✔Market Disequilibrium - ✔✔Exists at any other price that the equilibrium price. Here
there is either excess demand or excess supply in the market
✔✔Excess Supply - ✔✔When firms wish to sell more than consumers wish to buy, with
the price above the equilibrium
✔✔Excess Demand - ✔✔When consumers wish to buy more than firms wish to sell,
with the price below the equilibrium price
✔✔Joint Supply - ✔✔When one good is produced, another good is also produced from
the same raw materials
✔✔Competing Supply - ✔✔When raw materials are used to produce one good, they
cannot be used to produce another good
✔✔Complementary Goods - ✔✔Goods which are in joint demand, or a good which is
demanded at the same time as another good
✔✔Substitute Goods - ✔✔Goods which are in competing demand, or a good which can
be used in place of another good
✔✔Composite Demand - ✔✔Demand for a good which has more than one use
✔✔Derived Demand - ✔✔Demand for a good which is an input into the production of
another good
✔✔Short-run Production - ✔✔Occurs when a firm adds variable factors of production to
fixed factors of production
✔✔Long-run Production - ✔✔Occurs when a firm changes the scale of all the factors of
production
✔✔Productivity - ✔✔Output per unit of input
✔✔Labour Productivity - ✔✔Output per worker
✔✔Capital Productivity - ✔✔Output per unit of capital
✔✔Productivity Gap - ✔✔The difference between labour productivity in the UK and
other developed economies
