May/June 2026 Paper 23

2026 · 5 questions · 13 parts · 60 marks

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Q1
1(a)1(b)1(c)1(d)1(e)
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Q2
2(a)2(b)
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Q3
3(a)3(b)
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Q4
4(a)4(b)
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Q5
5(a)5(b)
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Context for question 1
Exports of Chinese electric vehicles (EVs) continue to increase In 2023, vehicle sales in China increased by 12% to a record 30.1 million units.
Table 1.1 Global sales of electric vehicles (EVs), 2020 and 2024 (million units)
Region20202024
Total global EV sales2.615.6
China0.810.1
Europe1.22.8
US0.41.4
Rest of the world0.21.3
There is also growing uncertainty about the US government's commitment to 'net zero', which is discouraging US consumers from switching to EVs. Source: Adapted; from How China rules the global electric car market, Daily Telegraph, 24 April 2024
1(a)DemandMedium2 marks
Use Table 1.1 to identify two changes in the global sales of EVs from 2020 to 2024.

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1(b)DemandMedium2 marks
Give two possible reasons why the demand for Chinese EVs in the EU has increased at a higher rate than such sales in the US.

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1(c)Protectionism Trade PolicyHard4 marks
With the help of a diagram, explain the effects of an export subsidy on the price and sales of imported Chinese EVs in the EU and consider an economic factor that could affect the size of any change.
PenEraserUndoRedoClear
Draw with the mouse or a finger.
1(d)Income Cross Elasticity DemandHard6 marks
A German car manufacturer is concerned about losing sales of EVs in the EU market to imports of EVs from China.
Assess the extent to which a knowledge of cross elasticity of demand (XED) might be of value to the German manufacturer when seeking to maintain sales in the EU market.

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1(e)Comparative Advantage TradeHard6 marks
Assess the impact of increased sales of Chinese EVs on the economy of a major EU car manufacturing country such as Germany.

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