IB Microeconomics - Supply and Demand

Will lead to a shift of the supply curve...

• Change in costs of production

• Change in firm's reputation

• Change in consumer preferences

Will lead to a shift of the demand curve...

• Change in costs of production
• Change in firm's reputation
• Change in taxes
• Change in international tariffs

Definition of market equilibrium

• Quantity demanded and quantity supplied are the same

• Quantity demanded and quantity supplied are different

• Quantity demanded is higher than quantity supplied

• Quantity demanded is lower than quantity supplied

Will lead to a change along the demand curve

• Change in prices
• Change in firm's reputation
• Change in consumer preferences

Will lead to a change along the supply curve

• Change in prices
• Change in costs of production
• Change in taxes
• Change in international tariffs

The supply curve shows

• The amount of goods or services that are supplied at a given market price.

• The amount of goods or services that are consumed at a given market price.

• The amount of goods or services that are supplied at a given quantity.

The demand curve shows

• The amount of goods or services that are consumed at a given market price.

• The amount of goods or services that are supplied at a given market price.

• The amount of goods or services that are consumed at a given quantity.

The law of demand says that

• at higher prices, buyers will demand less of an economic good.

• at higher prices, buyers will demand more of an economic good.

• at higher prices, sellers will supply more of an economic good.

• at higher prices, sellers will supply less of an economic good.

The law of supply says that at higher prices,

• sellers will supply more of an economic good.

• sellers will supply less of an economic good.

• buyers will demand less of an economic good.

• buyers will demand more of an economic good.

The demand curve is

• downward sloping
• upward sloping