IB Economics HL 2.1.1 Law of Demand Question Bank
Practise IB Economics HL 2.1.1 by defining demand, calculating from linear functions and applying ceteris paribus.
- Syllabus
- First assessment 2022
- Course
- Economics HL
- Level
- HL
Exam points
- Define demand as the quantity consumers are willing and able to buy at each price.
- Calculate price or quantity demanded from a linear demand equation by substitution.
- Use ceteris paribus to explain the inverse price–quantity relationship and its limits.
2.1.1—Law of demand 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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