IB Economics: 2.1 Demand teaching and learning PowerPoint notes for HL and SL IB Economics. You have below, a range of practice activities, flash cards, exam practice questions and an online interactive self test to ensure you have complete mastery of the IB Economics requirements for the 2.1 Demand topic. Test how well you know the IB Economics Supply and demand: 2.1 Demand topic with the interactive self-assessment quizzes below. Each interactive quiz selects 30 questions at random from a much larger question bank so keep on practicing! Aim for a score of at least 80 per cent What happens as prices for a good or service rises?An increase in price almost always leads to an increase in the quantity supplied of that good or service, while a decrease in price will decrease the quantity supplied.
What happens to the demand for a good or service when its price increases?If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.
What happens to a good when demand increases?The increase in demand causes excess demand to develop at the initial price. a. Excess demand will cause the price to rise, and as price rises producers are willing to sell more, thereby increasing output.
What happens to the demand as the price increases and why?The Law of Demand
In other words, the higher the price, the lower the level of demand. Because buyers have finite resources, their spending on a given product or commodity is limited as well, so higher prices reduce the quantity demanded. Conversely, demand rises as the product becomes more affordable.
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