Practise IB Economics SL 2.1.6 by distinguishing price-driven movements from non-price demand shifts and explaining their effects with labelled diagrams.
Explain the view that an increase in price will lead to a decrease in the quantity demanded whilst an increase in demand will lead to an increase in price.
Answers may include:
- definition of demand
- diagrams to illustrate the difference between movements along the demand curve and shifts of the demand curve
- theory to explain an increase in price leading to a decrease in the quantity demanded, due to the law of demand, through a movement along the demand curve, and an increase in demand due to a change in non-price determinants, leading to an increase in price through a shift to the right of the demand curve
- examples of instances to which this might be, or has been, applied.
Assessment Criteria
Part (a) 10 marks
Level 0 (0 marks): The work does not reach a standard described by the descriptors below.
Level 1 (1-3 marks): 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.
Level 2 (4-6 marks): There is some understanding of the specific demands of the question. Some relevant economic terms are defined. There is some knowledge of relevant economic theory. There are some errors.
Level 3 (7-8 marks): There is understanding of the specific demands of the question. Relevant economic terms are defined. Relevant economic theory is explained and applied. Where appropriate, diagrams are included and applied. Where appropriate, examples are used. There are few errors.
Level 4 (9-10 marks): There is clear understanding of the specific demands of the question. Relevant economic terms are clearly defined. Relevant economic theory is clearly explained and applied. Where appropriate, diagrams are included and applied effectively. Where appropriate, examples are used effectively. There are no significant errors.