IBDP Economics HL – Microeconomics – Competitive market equilibrium -Paper 1 Exam Style Practice Questions
Competitive market equilibrium Paper 1?
Exam Style Questions.
Subject Guide IBDP Economic IBO
IBDP Economic SL- All Topics
Exam Style Question for IBDP Economics HL- Competitive market equilibrium -Paper 1
Question
With reference to the concept of excess demand, explain how a decrease in supply of a good would lead to a new market equilibrium
▶️Answer/Explanation
Answers may include:
- definitions of demand, supply, excess demand, market equilibrium
- diagrams to show a leftward shift of supply with excess demand and an increase in price
- explanation of adjustments to a new market equilibrium in the case of a leftward shift of supply
- examples of decreases in supply affecting market equilibrium.