Level
Marks
0
The work does not meet a standard described by the descriptors below.
1
The written response is limited.
1-2
For a diagram(s) showing two distinct market segments, with different price elasticities of demand, and profits maximized (MC =MR ) in each market at different prices OR an explanation that as price elasticities of demand are different, profit can be maximized by setting different prices with a lower price in the market with more elastic demand and/or a higher price in the market with more inelastic demand.
NB Reference to revenue rather than profit should be accepted.
2
The written response is accurate.
3-4
For a diagram(s) showing two distinct market segments, with different price elasticities of demand, and profits maximized (MC =MR ) in each market at different prices AND an explanation that as price elasticities of demand are different, profit can be maximized by setting different prices with a lower price in the market with more elastic demand and/or a higher price in the market with more inelastic demand.
NB Reference to revenue rather than profit should be accepted.
NB Alternative presentations may include: back to back (mirror) or an additional third diagram indicating the sum of the revenue curves.