WorksheetsIB Microeconomics - Supply and Demand
Total questions: 16
Worksheet time: 3mins
Will lead to a shift of the supply curve...
Change in costs of production
Change in firm's reputation
Change in consumer preferences
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
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.
An increase in a firm`s reputation can be represented by
A rightward shift of the demand curve
A leftward shift of the demand curve
A rightward shift of the supply curve
A leftward shift of the supply curve
Define the term price elasticity of supply.
the responsiveness of quantity supplied to a change in price.
the responsiveness of quantity demanded to a change in price.
the responsiveness of quantity supplied to a change in quantities.
Chose all factors that influence the price elasticity of supply (PES)
whether the firm has excess (or unused, or spare) capacity available: if it does, then increasing output will be easier so supply will be more price elastic
possibility of storage: the greater the ability to store stocks, the more price elastic supply will be as firms can draw from stocks to increase the quantity supplied
mobility of factors of production: the easier it is for a producer to switch resources from one use to another, the easier it will be to increase the quantity supplied in response to an increase in the price of the product, so supply will be more elastic (the ease with which technology can be implemented/applied could be an example of this)
the rate at which costs rise as output increases – the faster/higher the rate, the lower the PES (NB “costs of production” should not be rewarded)
the nature of the product eg for agricultural products, the time lag between planting and harvest is relatively long, so supply would be relatively price inelastic in the short term
