Tutor2u IB Economics Revision Quizzes 2010
(H) indicates Higher Level only.
Quiz 2 Microeconomics- Demand, supply and elasticity
1. State the three ways in which prices help to allocate scarce resources.
2. Explain how the income and substitution effect can explain the inverse relationship between price and
quantity demanded.
3. State two factors that will shift the demand curve to the right.
4. Explain two possible reasons why a demand curve may be upward sloping (H)
5. Explain why supply is upward sloping.
6. State the formula for PED.
7. Draw an inelastic demand curve.
8. Explain the relationship between price and total revenue for a firm supplying an elastic product.
9. Explain why PED is not constant along the length of a demand curve.
10. State two factors that would influence the price elasticity of supply.
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