AO2 (3 marks)/AO3 (3 marks)
AO2 and AO3
- By calculating YED, operators of public transport would be able to see the likely effect on demand following an increase in income
- Owing to the poor standard of rail travel and of buses often being late in Bulgaria, public transport may be an inferior good
- Inferior goods have a negative income elasticity of demand, meaning as incomes increase, demand decreases
- Therefore, an increase in income in Bulgaria is likely to lead to a fall in demand for bus and train travel as they switch to using private cars
- This means operators of public transport would lose custom due to incomes increasing
- Knowledge of YED would allow the operators to take action to improve quality/service according to the likely outcome of YED calculations
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 and organisation. Interpretation of economic information will be excellent, with a thorough analysis of issues (AO3).