IB Economics HL 2.2.5 Non Price Determinants of Supply Topic Practice

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Study 2.2.5—Non-price determinants of supply conceptsOpen the corresponding Concept lesson for explanations, examples and exam connections.

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\begin{aligned} & Q d=249-4 P \\ & Q s=150+14 P \end{aligned}

where Qd is the quantity demanded per month, Qs is the quantity supplied per month and P is the price per widget in dollars ($).

Two products are in competitive supply. Using an example, outline how the supply for one of them is likely to be affected by an increase in the price of the other.

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