Edexcel IGCSE Economics 1.1.3.f factors shifting supply

AO2 (3 marks)/AO3 (3 marks)

AO2 and AO3

- Possible use of a diagram:

- Natural factors, such as favourable weather could shift the supply curve outwards/to the right (from S to S1)

- Favourable weather can increase supply because it can make it easier to grow olives and therefore make it cheaper to produce olive oil

- Greece's production was expected to increase by 100,000 tonnes from the previous year in the 2025 season (Qe to Q1)

- This will therefore result in a decrease in the price (from Pe to Pl) if demand stays the same

- This is evident from the expected fall in price of olive oil by at least 50%, from € 10000 per tonne to between € 4000 and € 5000 pertonne

Level

Mark

Descriptor

0

No rewardable material.

Level
1

1-2

- Demonstrates basic knowledge and understanding by developing relevant points. Limited application of economic terms, concepts, theories and calculations (AO2).

- Information presented will lack selectivity and organisation. Interpretation of economic information will be limited, with a lack of analysis of issues(AO3).

Level
2

3-4

- Demonstrates partial knowledge and understanding by developing relevant points. Partial application of economic terms, concepts, theories and calculations (AO2).

- Information presented will demonstrate some selectivity and organisation. Interpretation of economic information will be good, with some analysis of issues (AO3).

Level
3

5-6

- Demonstrates clear knowledge and understanding by developing relevant points. Appropriate application of economic terms, concepts, theories and calculations (AO2).

- Information presented will demonstrate excellent selectivity andorganisation. Interpretation of economic information will be excellent, with a thorough analysis of issues (AO3).

Question
number

With reference to the data above and your knowledge of economics, assess the benefits to Fitnation of offering the discounted price.

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