DP Economics
Question 18M.3.HL.TZ0.d
| Date | May 2018 | Marks available | [Maximum mark: 2] | Reference code | 18M.3.HL.TZ0.d |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Outline | Question number | d | Adapted from | N/A |
d.
[Maximum mark: 2]
18M.3.HL.TZ0.d
Note that widgets and pidgets are imaginary products.
In the country of Burbia, the demand and supply of widgets are given by the functions
Qd = 249 − 4P
Qs = 150 + 14P
where Qd is the quantity demanded per month, Qs is the quantity supplied per month and P is the price per widget in dollars ($).
A demand curve is drawn under the assumption of ceteris paribus.
Using an example, outline why the assumption of ceteris paribus is necessary when analysing the effect of a change in price on the quantity demanded of a product.
[2]
Markscheme
