Paper 3 question on market equilibrium, subsidies
IB Economics Paper 3 includes two compulsory questions. This is a sample Paper 3 question. The time allowed for Paper 3 is 105 minutes, so students should spend 52.5 minutes on each question. This Paper 3 style question is on market equilibrium. The diagram to the right illustrates the demand and supply for bread in a local market. (a) Define the following terms: i. Social surplus [2 marks] This is equal to producer...