You met the two pictures in 2.2.2. Each one has its own words, and the exam checks them.
Which picture, which word?
The good's own price changes
The price of strawberries rises, so producers offer more.
Anything else changes
Costs fall, so producers offer more at every price.
Animated graph
Watch the graph build step by step in study mode.
Remember it as: Price moves you along: quantity supplied. Everything else moves the line: supply.
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In the exam, the word you write shows which picture you mean. Copy these sentences.
Write it like this in the exam
The price changes
"The price rose from €6 to €7, so the quantity supplied rose from 40 to 50, which is a movement along the supply curve."
Something else rises
"Costs fell, so supply increased, which is a shift of the supply curve to the right, from S1 to S2."
Something else falls
"A new tax raised costs, so supply decreased, which is a shift of the supply curve to the left, from S1 to S2."
If the price changed
- Write: "The quantity supplied rose (or fell), which is a movement along the supply curve."
If anything else changed
- Write: "Supply increased (or decreased), which is a shift of the supply curve to the right (or left)."
See how examiners mark answers
Answer exam-style questions with model answers. Learn exactly what earns marks and what doesn't.
Two stories. Follow the numbers, then the graph.
Scenario 1: supply falls
Supply falls
A cold spring ruins part of the crop.
Shortage at €6
Because of the ruined crop, producers now offer only 20, but buyers still want 40.
Price rises to €7
Buyers want 30, producers offer 30.
Our example (made-up numbers): after supply falls
| Price | Buyers want | Producers offer | What happens |
|---|---|---|---|
| €6 (old price) | 40 | 20 | 20 short: the price rises |
| €7 (new price) | 30 | 30 | Balanced |
Animated graph
Watch the graph build step by step in study mode.
Scenario 2: the price rises
Demand rises
A cooking show makes strawberries popular.
Shortage at €6
Because of the cooking show, buyers now want 60, but producers still offer 40.
Price rises to €7
Producers now offer 50, not 40: quantity supplied rises. S does not move.
Our example (made-up numbers): after demand rises
| Price | Buyers want | Producers offer | What happens |
|---|---|---|---|
| €6 (old price) | 60 | 40 | 20 short: the price rises |
| €7 (new price) | 50 | 50 | Balanced |
Animated graph
Watch the graph build step by step in study mode.
Paper 1 asked this in November 2024, as part (a) for 10 marks.
Explain why a decrease in the supply of a good would normally lead to an increase in its price, while an increase in the price of a good would normally lead to more of it being produced.
Model answer plan
See the answer broken into clear points, with guidance on how each point earns marks.
Animated graph
Watch the graph build step by step in study mode.
What the diagrams must show
- Two diagrams, each with P and Q axes.
- Diagram 1: D, S1 → S2 to the left, P1 → P2 and Q1 → Q2.
- Diagram 2: S, D1 → D2 to the right, the price rising and Q1 → Q2 along S.
- Say shortage in half 1 and quantity supplied in half 2.
How the 10 marks are given
| Marks | What your answer needs |
|---|---|
| 9–10 | Both parts fully explained, terms used correctly all the way through, the diagram included and fully explained |
| 7–8 | Both parts explained, terms mostly right, the diagram included and explained |
| 5–6 | Partly explained, some terms, the diagram included |
| 6 at most | Only one of the two parts answered, however good it is |