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Question 18M.1.HL.TZ1.1a

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Date May 2018 Marks available [Maximum mark: 10] Reference code 18M.1.HL.TZ1.1a
Level HL Paper 1 Time zone TZ1
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
18M.1.HL.TZ1.1a
(a)

With reference to the concept of excess demand, explain how a decrease in supply of a good would lead to a new market equilibrium.

[10]

Markscheme

Answers may include:

  • definitions of demand, supply, excess demand, market equilibrium
  • diagrams to show a leftward shift of supply with excess demand and an increase in price
  • explanation of adjustments to a new market equilibrium in the case of a leftward shift of supply
  • examples of decreases in supply affecting market equilibrium.

Marks should be allocated according to the Paper 1 markbands for May 2013 forward, part A.

Syllabus sections