IB Economics Paper 1 Micro Past Paper Q 11.1 Competitive markets: demand and supply 1.Demand + supply + equilibrium a.Explaintwofactors which could shift a firm’s supply curve to the left. [M19/SP1/TZ2/1a] b.With reference to the concept of excess demand, explain how a decrease in supply of a good would lead to a new market equilibrium. [M18/HP1/TZ1/1a] c.Explaintwofactors that would lead to an increase in the demand for the product. [M18/SP1/TZ1/2a] d.With reference to demand and supply in competitive markets, explain how the economicquestion “what to produce” is answered. [N17/HP1/TZ0/1a] e.Explain how an increase in the price of air travel might affect the demand for its complements and its substitutes. [N17/SP1/TZ0/2a] f.Explain how an increase in the costs of factors of production would affect the market priceandoutput of a good. [M17/HP1/TZ2/1a] g.Explainonesupply factor andonedemand factor that might lead to a rise in the price of rented housing. [M16/SP1/TZ1/2a] h.Explain the view that an increase in price will lead to a decrease in the quantity demanded whilst an increase in demand will lead to an increase in price. [M15/SP1/TZ1/2a] i.Explain the view that an increase in price will lead to an increase in the quantity supplied whilst an increase in supply will lead to a decrease in price. [M15/SP1/TZ2/1a] j.Explain the likely effects of falling costs of factors of production on price and output in agricultural markets. [M15/SP1/TZ2/2a] k.Using diagrams, explain how a change in one of the determinants of demand might increase the price of rice and how a change in one of the determinants of supply might decrease the price of rice. [M14/HP1/TZ1/1a]
