ExpertEasy1 markMultiple Choice
AQA GCSE · Question 10 · How markets work
Table 1 shows the quantities of wood supplied and demanded at various prices.
Table 1
Price (£ per tonne) Quantity demanded (tonnes) Quantity supplied (tonnes) 25 150 50 50 125 75 75 100 100 100 75 125 125 50 150
What is the excess supply at a price of £100 per tonne?
Table 1 shows the quantities of wood supplied and demanded at various prices.
Table 1
| Price (£ per tonne) | Quantity demanded (tonnes) | Quantity supplied (tonnes) |
|---|---|---|
| 25 | 150 | 50 |
| 50 | 125 | 75 |
| 75 | 100 | 100 |
| 100 | 75 | 125 |
| 125 | 50 | 150 |
What is the excess supply at a price of £100 per tonne?
Answer options:
A.
25 tonnes
B.
50 tonnes
C.
75 tonnes
D.
100 tonnes
How to approach this question
1. Locate the row in the table for the price of £100 per tonne. 2. Identify the quantity supplied (125 tonnes) and the quantity demanded (75 tonnes) at this price. 3. Calculate the excess supply by subtracting the quantity demanded from the quantity supplied.
Full Answer
B.50 tonnes✓ Correct
The correct answer is B. At a price of £100, the quantity supplied is 125 tonnes and the quantity demanded is 75 tonnes. Excess supply = Quantity Supplied - Quantity Demanded = 125 - 75 = 50 tonnes.
Excess supply, or a surplus, exists in a market when the price is above the equilibrium price. At this higher price, producers are willing to supply more of the good than consumers are willing to buy. To find the amount of the surplus, you subtract the quantity demanded from the quantity supplied at that specific price. From the table, at £100, this is 125 tonnes - 75 tonnes = 50 tonnes.
Common mistakes
Subtracting quantity supplied from quantity demanded, or misreading the table and using values from the wrong price level.
Practice the full AQA GCSE Economics Paper 1
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