IB Economics HL 2.1.1 Law of Demand Questions
Revise IB Economics HL 2.1.1 by defining demand, calculating quantity demanded or price from equations and explaining ceteris paribus.
- Syllabus
- First assessment 2022
- Course
- Economics HL
- Level
- HL
Exam points
- Define demand as the quantity of a good or service consumers are willing and able to buy at a given price and time.
- Calculate quantity demanded or price by substituting values into a linear demand function and showing valid working.
- Explain why ceteris paribus is needed to isolate a price change from other demand determinants such as income or preferences.
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IB Economics HL 2.1.1 Law of Demand Questions question 1
[Maximum number: 2]
Note that widgets and pidgets are imaginary products.
In the country of Burbia, the demand and supply of widgets are given by the functions
Qd=249−4PQs=150+14P
where Qd is the quantity demanded per month, Qs is the quantity supplied per month and P is the price per widget in dollars ($).
Using an example, outline why the assumption of ceteris paribus is necessary when analysing the effect of a change in price on the quantity demanded of a product.
Level
Marks
0
The work does not meet a standard described by the descriptors below.
1
Vague response.
The idea that some things might change or to understand the impact of change in one independent variable (price) at a time.
2
Accurate response.
An outline that a change in any of the non-price determinants, such as income and tastes and preferences, may distort the effect of the change in price, meaning that the impact of the change in price alone cannot be determined.
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