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

Supply - short answer

Question 1

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

Question 2

Supply curve shifting left

If the above supply curve is the supply curve for energy saving light bulbs, which of the following events may have caused the shift shown?

(a) A fall in price of a substitute for energy saving light bulbs
(b) A subsidy on the production of energy saving light bulbs
(c) A fall in labour costs for producing conventional light bulbs
(d) A fall in the price of raw materials required for manufacture
(e) Anticipating a increase in demand, major manufacturers invest in new capital equipment for the manufacturing of energy saving light bulbs
(f) A decrease in real incomes

Question 3

Which of the following is a reasonable explanation of the direct relationship between price and supply (the supply curve)? N.B. A number of them could be right.

(a) Improvements in technology help manufacturers to supply more at a lower price.
(b) As price of a good or service falls, firms will shift to producing other goods which become more profitable.
(c) At higher prices it is still profitable to use more expensive factors of production switched from other areas.
(d) At higher prices it is worthwhile producing more despite higher costs of production as the profit margin stays the same.
(e) Labour costs tend to increase each year.