2.A. COMPETITIVE MARKETS: DEMAND AND SUPPLY
- Explain the meaning of the Price Mechanism.
- Explain the meaning of the term 'market'.
- Define 'demand'.
- Draw a demand curve.
- Explain the law of demand verbally and using diagrams.
- Explain that the demand curve represents the relationship between the price and the quantity demanded of a product, ceteris paribus.
- Describe the relationship between an individual consumer's demand and market demand.
- Explain the determinants of demand.
- Distinguish between a shift of and a movement along the demand curve.
- Draw diagrams to show differences between movements along the demand curve and shifts of the demand curve.
- Define 'supply'.
- Draw a supply curve.
- Explain the law of supply verbally and using diagrams.
- Explain that the supply curve represents the relationship between the price and the quantity supplied of a product, ceteris paribus.
- Describe the relationship between an individual producer's supply and market supply.
- Explain the determinants of supply.
- Distinguish between a shift of and a movement along the supply curve.
- Draw diagrams to show differences between movements along the supply curve and shifts of the supply curve.
- Explain the concept of 'equilibrium'.
- Explain, using diagrams, how demand and supply interact to produce market equilibrium.
- Explain the concepts of 'excess demand' and 'excess supply'.
- Analyse, using diagrams, how changes in the determinants of demand and/or supply result in a new market equilibrium.
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demand_lessons_1_and_2.docx | |
File Size: | 222 kb |
File Type: | docx |
How important is marketing in influencing consumer preferences?
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- Define 'supply'.
- Draw a supply curve.
- Explain the law of supply verbally and using diagrams.
- Explain that the supply curve represents the relationship between the price and the quantity supplied of a product, ceteris paribus.
- Describe the relationship between an individual producer's supply and market supply.
- Explain the determinants of supply.
- Distinguish between a shift of and a movement along the supply curve.
- Draw diagrams to show differences between movements along the supply curve and shifts of the supply curve.
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supply_lessons_1_and_2.docx | |
File Size: | 101 kb |
File Type: | docx |
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market_equilibrium.docx | |
File Size: | 1698 kb |
File Type: | docx |
WHY: TO UNDERSTAND HOW INTERVENTION IN THE MARKET CAN DISTORT MARKET EFFICIENCY

consumer_producer_surplus_ib_lesson.doc | |
File Size: | 70 kb |
File Type: | doc |
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ASSESSMENT IN THE STYLE OF PAPER 1: Distinguish between a shift of the demand curve and a movement along the products demand curve (10 marks)
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- Explain and plot a linear demand function of the form Qd = a – bP.
- Identify the slope of the demand curve as the slope of the demand function Qd = a – bP, that is '–b' (the coefficient of P).
- Outline why, if the 'a' term changes, there will be a shift of the demand curve.
- Outline how a change in 'b' affects the steepness of the demand curve.
- Explain and plot a linear supply function of the form Qs = c + dP.
- Identify the slope of the supply curve as the slope of the demand function Qs = c + dP, that is 'd' (the coefficient of P).
- Outline why, if the 'c' term changes, there will be a shift of the supply curve.
- Outline how a change in 'd' affects the steepness of the supply curve.
- Calculate the equilibrium market price and quantity using linear demand and supply functions.
- Plot demand and supply curves from linear functions, and identify the equilibrium price and quantity.
- Calculate the quantity of excess demand or excess supply from the above plotted graphs.

demand_function.docx | |
File Size: | 79 kb |
File Type: | docx |

supply_function.docx | |
File Size: | 78 kb |
File Type: | docx |
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Once you have completed the booklets you are going to create a brief film to demonstrate your learning:
You should include
- A market
- Both a demand and supply function
- Demonstrate Market Equilibrium
- Show how a non-price determinant (change in a+c) will effect the market equilibrium
- you should try to make the film as interesting as possible and show ALL Workings.
Success CRITERIA:
You will have been successful if your film demonstrates your ability to:
- Explain and plot a linear demand function of the form Qd = a – bP.
- Identify the slope of the demand curve as the slope of the demand function Qd = a – bP, that is '–b' (the coefficient of P).
- Outline why, if the 'a' term changes, there will be a shift of the demand curve.
- Outline how a change in 'b' affects the steepness of the demand curve.
- Explain and plot a linear supply function of the form Qs = c + dP.
- Identify the slope of the supply curve as the slope of the demand function Qs = c + dP, that is 'd' (the coefficient of P).
- Outline why, if the 'c' term changes, there will be a shift of the supply curve.
- Outline how a change in 'd' affects the steepness of the supply curve.
- Calculate the equilibrium market price and quantity using linear demand and supply functions.
- Plot demand and supply curves from linear functions, and identify the equilibrium price and quantity.
- Calculate the quantity of excess demand or excess supply from the above plotted graphs.
(You can use Quicktime on a mac to record screen and narrations, if you're not sure how to do this please ask)
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