IB Economics HL 2.3.1 Market Equilibrium Questions

Practise IB Economics HL 2.3.1 market equilibrium by solving for price and quantity, plotting demand and supply and interpreting the result.

Exam points

Find market equilibrium by setting quantity demanded equal to quantity supplied and solve for equilibrium price and quantity.
Plot and label demand and supply curves and identify their intersection as the market equilibrium.
Report equilibrium price, quantity and units accurately and interpret the result in context.

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Study 2.3.1—Market equilibrium conceptsOpen the corresponding Concept lesson for explanations, examples and exam connections.

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Note that widgets and pidgets are imaginary products.

In the country of Burbia, the demand and supply of widgets are given by the functions

\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 ($).

Calculate the equilibrium price and quantity per month.

249-4 P=150+14 P
99=18 P

Any valid working is sufficient for [1].
$P=\$5.50$ , Q=227

An answer of 5.50, 227 (without working) is sufficient for [1].

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IB Economics HL 2.3.1 Market Equilibrium Questions question 1