1.3.2 - The market

Analyse demand changes caused by substitute and complementary prices, incomes, tastes, marketing, demographics, shocks and seasonality.

Use a - changes in demand to connect the rule to the data and decision in the question.

This matters because a - changes in demand determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - changes in demand to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Changes in demand is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Analyse supply changes caused by production costs, technology, indirect taxes, subsidies and external shocks.

Use a - changes in supply to connect the rule to the data and decision in the question.

This matters because a - changes in supply determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - changes in supply to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Changes in supply is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Explain how demand and supply interact in a market.

Use a - demand and supply interaction to connect the rule to the data and decision in the question.

This matters because a - demand and supply interaction determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - demand and supply interaction to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Demand and supply interaction is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Draw and interpret demand and supply diagrams to show causes and consequences of shifts.

Use b - demand and supply diagrams to connect the rule to the data and decision in the question.

This matters because b - demand and supply diagrams determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - demand and supply diagrams to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Demand and supply diagrams is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Calculate price elasticity of demand.

Use a - ped calculation to connect the rule to the data and decision in the question.

This matters because a - ped calculation determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - ped calculation to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - PED calculation is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Interpret numerical values of price elasticity of demand.

Use b - ped values to connect the rule to the data and decision in the question.

This matters because b - ped values determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - ped values to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - PED values is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Explain factors that influence price elasticity of demand.

Use c - factors affecting ped to connect the rule to the data and decision in the question.

This matters because c - factors affecting ped determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - factors affecting ped to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Factors affecting PED is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Evaluate the significance of price elasticity of demand for business pricing decisions.

Use d - ped and pricing to connect the rule to the data and decision in the question.

This matters because d - ped and pricing determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - ped and pricing to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - PED and pricing is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Calculate and interpret the relationship between price elasticity of demand and total revenue.

Use e - ped and total revenue to connect the rule to the data and decision in the question.

This matters because e - ped and total revenue determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - ped and total revenue to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - PED and total revenue is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Calculate income elasticity of demand.

Use a - yed calculation to connect the rule to the data and decision in the question.

This matters because a - yed calculation determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - yed calculation to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - YED calculation is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Distinguish normal goods from inferior goods.

Use b - normal and inferior goods to connect the rule to the data and decision in the question.

This matters because b - normal and inferior goods determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - normal and inferior goods to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Normal and inferior goods is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Interpret numerical values of income elasticity of demand.

Use c - yed values to connect the rule to the data and decision in the question.

This matters because c - yed values determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - yed values to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - YED values is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Explain factors that influence income elasticity of demand.

Use d - factors affecting yed to connect the rule to the data and decision in the question.

This matters because d - factors affecting yed determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - factors affecting yed to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Factors affecting YED is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Evaluate the significance of income elasticity of demand to businesses.

Use e - yed and business decisions to connect the rule to the data and decision in the question.

This matters because e - yed and business decisions determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - yed and business decisions to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - YED and business decisions is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.