2001 Paper 9 Question 5
Business Studies
(a) What is meant by the terms supply curve and demand curve, and what is
significant about the point where they cross? [5 marks]
(b) What is meant by the terms cost curve and break-even point? Draw a diagram
to show the relation between them and the demand curve. How would you
attempt to establish a demand curve in practice? [5 marks]
(c) The cost and demand schedules for a particular product are given in the
following table. What price should the manufacturer set? [5 marks]
Volume, k Unit Cost Unit Price
1 11.8 19
2 11.6 18
3 11.4 17
4 11.2 16
5 11.0 15
6 10.8 14
7 10.6 13
8 10.4 12
9 10.2 11
10 10.0 10
(d) Discuss the economic impact of the advent of the Internet. [5 marks]