Answer the following
1. Distinguish between a shift of the demand curve for a product and a movement along the product’s demand curve (10 marks) 2. With reference to two different determinants of demand, explain why the demand curve for bicycles might increase. Use a diagram to support your answer (10 marks) 3. Distinguish between a shift of the supply curve for a product and a movement along the product’s supply curve (10 marks) 4. With reference to two different determinants of supply, explain why the supply of coffee beans might decrease. Use a diagram to support your answer (10 marks) Assessment advice
* Answers tend to resemble each other structurally.
* Each should start with a written explanation in which the key economics terms are defined. * This would usually be followed by a diagram to illustrate the theory, followed by a further explanation in which the diagram is explained in the context of the specific question. * Be sure to use arrows to show directions of change in the diagrams and refer to any changes in the variables.
Assessment criteria (Each question carries 10 marks)
0 The work does not reach a standard described by the descriptors below. 0 1 There is little understanding of the specific demands of the question. Relevant economic terms are not defined.
There is very little knowledge of relevant economic theory. There are significant errors. 1–3 2 There is some understanding of the specific demands of the question. Some relevant...