Microeconomics

Table of Contents

1. Topic pack - Microeconomics - introduction
2. 1.1 Competitive Markets: Demand and Supply
3. 1.1 Competitive Markets: Demand and Supply - notes
4. 1.1 Competitive markets - questions
   1. Market structures - self-test questions
   2. Market structure - short answer
   3. Price as a signal - short answer
   4. Demand - self-test questions
   5. Demand - short answer
   6. Supply - short answer
   7. Demand and supply - short answer
   8. Markets and prices - self-test questions
   9. Market equilibrium - numerical
   10. Demand and supply - data response
   11. High Food Prices
   12. Oil - the rise and rise
   13. New Zealand dairy prices increase
   14. Orange juice will soon be a luxury
   15. The true face of global warming
   16. How much is a 2p worth? Actually 3p
   17. Labour mobility
5. 1.1 Competitive markets - simulations and activities
6. 1.2 Elasticities
7. 1.2 Elasticities - notes
8. Section 1.2 Elasticities - questions
9. Section 1.2 Elasticities - simulations and activities
10. 1.3 Government intervention
11. 1.3 Government Intervention - notes
12. 1.3 Government intervention - questions
13. 1.3 Government intervention - simulations and activities
14. 1.4 Market failure
15. 1.4 Market failure - notes
16. Section 1.4 Market failure - questions
17. Section 1.4 Market failure - simulations and activities
18. 1.5 Theory of the firm
19. 1.5 Theory of the firm - notes (HL only)
20. Section 1.5 Theory of the firm - questions
21. Section 1.5 Theory of the firm - simulations and activities
22. Print View

Demand - short answer

Question 1

What is individual demand? What is the difference between individual demand and market demand?

Question 2

The table below represents the market for DVD's. For each of the changes given, tick the relevant column to show whether the demand curve has shifted either left or right or whether there has been an extension or contraction of demand (a movement along the demand curve).

Question 3

Demand curve shifting right

Energy saving light bulbs can be used to replace conventional light bulbs. At present energy saving light bulbs are significantly more expensive to buy than normal light bulbs and the light takes several minutes to reach full intensity. If the above demand curve is the demand curve for energy saving light bulbs, which of the following events may have caused the shift shown?

(a) A fall in price of a conventional light bulbs
(b) Government legislation restricting the manufacture and sale of conventional light bulbs
(c) An increase in the cost of electricity
(d) An increase in the price of raw materials required for the manufacture of energy saving light bulbs
(e) Medical reports about cancer causing effects of energy light bulbs

(f) A decrease in real incomes
(g) An increase in real incomes
(h) A major advertising campaign showing the benefits of energy light bulbs
(i) Improved technology speeding up the time taken for energy saving light bulbs to reach full light intensity

Question 4

Which of the following would you regard as substitutes for a laptop computer and which may be complements? In each case consider whether they are 'close' complements or substitutes.

(a) Apple iPod

(b) Desktop computers
(c) PDA's
(d) Web site development software
(e) Mobile phones
(f) Handheld tablet computers
(g) Docking stations