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NotesEconomicsTopic 2.3
Unit 2 · Microeconomics · Topic 2.3

IB Economics — Competitive market equilibrium

Equilibrium price/quantity, changes in equilibrium, and market adjustment.

Exam technique guidePractice questions

Key concepts in Competitive market equilibrium

Key Idea: Topic 2.3 shows how **demand and supply interact** to determine the market price and quantity, what happens when equilibrium **changes**, and how to measure **consumer and producer surplus**.

✅ Core definitions


⚖️ Surplus and shortage


📊 How equilibrium changes

Memory trick: D shifts → P and Q move in the **same direction**. S shifts → P and Q move in **opposite directions**.

🔀 Simultaneous shifts

Always draw the diagram step by step: original equilibrium → shift one curve → shift the other → identify what is certain and what is indeterminate.

What you'll learn in Topic 2.3

  • 2.3.1 Market equilibrium
  • 2.3.2 Changes in equilibrium
  • 2.3.3 Consumer and producer surplus
Suggested study order: Read the notes for each sub-topic below → test yourself with flashcards → attempt practice questions → review exam technique.

Study resources — 2.3 Competitive market equilibrium

2.3.1

Market equilibrium

Notes
2.3.2

Changes in equilibrium

Notes
2.3.3

Consumer and producer surplus

Notes

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Topic 2.3 Competitive market equilibrium forms a core part of Unit 2: Microeconomics in IB Economics. Mastering these concepts will strengthen your understanding of connected topics across the syllabus and prepare you for exam questions that require analysis, evaluation, and real-world application.

Frequently asked questions

What does Topic 2.3 Competitive market equilibrium cover in IB Business Management?
Topic 2.3 covers competitive market equilibrium as part of the IB BM syllabus. Students learn key business concepts, tools, and frameworks that are assessed in Paper 1 (case study) and Paper 2 (structured questions).
How should I revise Competitive market equilibrium for IB Business Management exams?
Start with the micro-topic notes to build understanding, then use flashcards for key terms and formulas. Practise applying concepts to case study scenarios and review how marks are allocated in IB mark schemes.
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