The allocation of resources

Worked examples (6)

• 1Define 'demand' (2 marks)
• 2Explain the law of demand (4 marks)
• 3Analyse factors that increase demand (6 marks)
• 4Analyse income effects on normal vs inferior goods (6 marks)
• 5Discuss whether price is the main driver of demand (8 marks)
• 6Discuss whether higher income always raises demand (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'supply' (2 marks)
• 2Explain the law of supply (4 marks)
• 3Analyse causes of an increase in supply (6 marks)
• 4Analyse a carbon tax on fossil-fuel supply (6 marks)
• 5Discuss subsidising renewable energy supply (8 marks)
• 6Discuss whether costs are the main supply factor (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'market equilibrium' (2 marks)
• 2Explain surplus and shortage (4 marks)
• 3Analyse how a market returns to equilibrium (6 marks)
• 4Analyse a supply shift on equilibrium (6 marks)
• 5Discuss whether the price mechanism gives the best outcome (8 marks)
• 6Discuss a maximum price on a basic food (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'price elasticity of demand' (2 marks)
• 2Calculate PED (4 marks)
• 3Analyse the determinants of PED (6 marks)
• 4PED and total revenue (6 marks)
• 5Discuss whether a firm should raise its price (8 marks)
• 6Discuss taxing goods with inelastic demand (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2, data-response calculation style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'price elasticity of supply' (2 marks)
• 2Calculate PES (4 marks)
• 3Analyse the determinants of PES (6 marks)
• 4Analyse why agricultural supply is inelastic (6 marks)
• 5Discuss whether supply is always more elastic long run (8 marks)
• 6Discuss whether inelastic farm supply is a problem (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2, data-response calculation style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'market failure' (2 marks)
• 2Explain negative externalities (4 marks)
• 3Analyse a negative externality and over-production (6 marks)
• 4Analyse monopoly as a market failure (6 marks)
• 5Discuss whether a tax is the best way to cut pollution (8 marks)
• 6Discuss whether government should always intervene (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define a 'mixed economy' (2 marks)
• 2Distinguish free-market and command economies (4 marks)
• 3Analyse the roles of government in a mixed economy (6 marks)
• 4Analyse strengths and weaknesses of the free market (6 marks)
• 5Discuss whether a mixed economy is the best system (8 marks)
• 6Discuss whether government should intervene less (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style