Unit 2: Microeconomics
Topic 2.3: Competitive Market Equilibrium Questions
Practice 20 exam-style questions for IB Economics Topic 2.3. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
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2026
Define the term equilibrium quantity.
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Explain what is meant by excess supply.
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Define the term equilibrium price.
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The equilibrium price is also known as the market-clearing price because:
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If the market price is above the equilibrium price, there will be:
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If the market price is below the equilibrium price, there will be:
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An increase in demand (rightward shift), with supply unchanged, will lead to:
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A decrease in supply (leftward shift), with demand unchanged, will lead to:
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Explain what is meant by excess demand.
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Using a diagram, explain how the introduction of a new tax on sugary drinks would affect the market equilibrium.
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On a supply and demand diagram, total consumer surplus is represented by:
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Explain what is meant by producer surplus.
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If both demand and supply increase simultaneously, the equilibrium quantity will:
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A technological improvement in the production of solar panels would be expected to cause:
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2026
Explain why a rise in the price of a good reduces the quantity demanded, but a rise in demand for a good raises its price.
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At the competitive market equilibrium, total economic welfare (community surplus) is:
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Explain the role of the price mechanism in allocating scarce resources in a free market.
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