Transcript 90195 AssSch.pps

90195 Describe concepts related to
consumer choice and demand
Achievement Criteria
Achievement
Describe concepts
related to consumer
choice and demand.
Achievement with
Merit
Explain concepts
related to consumer
choice and demand.
Achievement with
Excellence
Explain concepts
related to consumer
choice and fully
explain the concepts
related to demand.
90195 Demand
(a) Describe the concept of limited means.
A
Not enough time, resources, money, skills
M
E
Limited
means
described
(b) Use the resource material to describe how Matthew is affected by
his limited means.
A
Matthew has limited time to play in the band,
to play rugby league and to work at The
Warehouse.
Matthew’s
limited
means
described
M
E
90195 Demand
(c) Use an economic concept to describe what Matthew has to do as a
result of his limited means.
A
They have to make a choice/decision about
working at The Warehouse or going to rugby
league practice
M
E
M
E
Must refer
to choice or
decision
(d) Define opportunity cost.
A
The next best alternative given up/forgone.
Correct
definition
90195 Demand
(e) Explain the opportunity cost for Matthew if he goes to league practice.
A
If Matthew chooses to go to rugby league
practice he must give up his job at The
Warehouse on Thursday night. The job at The
Warehouse is the opportunity cost (or vice
versa).
M
Opportunity
cost
explained
using the
context of
the
question.
E
90195 Demand
(a) Identify TWO factors that may affect Ben’s demand for a guitar.
A
Income, Tastes and preferences, brand;
Product features – points of difference from
other brands.(NOT price)
M
E
Two factors
required.
(b) Explain why price might not be the most important factor affecting
Ben’s demand for a guitar.
A
Wants a particular sound; or particular brand,
Price is only one factor to consider.
M
Particular
Price is
sound/brand only one
factor to
consider
E
90195 Demand
(c) Ben must decide between an electric guitar and an acoustic guitar.
What is the economic term for the relationship between an electric
guitar and an acoustic guitar?
A
M
E
Substitutes
Correct
term
(d) Explain how an increase in the price of acoustic guitars may affect
the demand for electric guitars.
A
M
An increase in the price of acoustic guitars
will increase the demand for electric
guitars.(A).Electric guitars will be relatively
cheaper than acoustic guitars. Some
consumers will buy electric guitars rather
than acoustic guitars.(M)
Increase in
price of
acoustic
guitars will
increase
demand for
electric
guitars.
Electric
guitars will
be
relatively
cheaper
than
acoustic
guitars.
E
90195 Demand
(a) Use the information provided to fill in the demand schedule illustrating
the band’s weekly demand for muffins.
The band’s weekly Demand
for Muffins
Price ($)
Quantity
1.00
24
1.20
20
1.40
18
1.60
16
1.80
12
A
Correct
Titles and:
3/5 correct
prices/
quantities
M
E
90195 Demand
(b) Use the information from the demand schedule to draw a fully
labelled graph to show the band’s weekly demand for muffins.
The band’s weekly demand curve for muffins
Price ($)
1.80
1.60
P 1.40
P’ 1.20
D
1.00
0
4
8
12
16
20
Q Q’
24
Quantity
A
M
FOUR of:
 title
 Accurately
plotted points
 Must be ruled
 D label
 Even scale of
axis
 Price axis label
Qty axis label.
(c) (i) On Graph 1 above, show the effect of a price decrease from
$1.40 to $1.20. Fully label the changes using labels, dotted lines
and arrows.
Lines, labels,
plus change in
OR arrows are
price and
used to show the quantity
price increase.
labelled
E
90195 Demand
(ii) Explain the effect of this price decrease on the quantity demanded.
A
Quantity demanded increases. As the price
decreases from $1.40 to $1.20 QD increases
from 18 to 20 muffins. At a lower price the
band can afford to purchase more muffins
because they are now relatively cheaper.
QD
increases
M
Increase of
2 muffins
and the idea
that at
lower price
consumer
can afford
more.
E
90195 Demand
(d) (i) Show the effect of the increase in income on the band’s demand
for recording studio time on Graph 2.
A
Price
D’
D
M
E
Must show
a new
labelled
curve to the
right.
Quantity
(ii) Explain the effect of an increase in income on the demand for
recording studio time.
A
M
The income of the band has increased so
they are able to demand more studio time
to record their music.
Increase in
income
results in
increase in
demand for
studio time,
E
90195 Demand
A
M
E
Merit for
(c)(i), (c)(ii)
and (d)(ii)
90195 Demand
(e) (i) Graph 3 shows the demand for DVDs which store the recorded
sound. Show and fully label the effect of the decreased price of
recording studio time on the demand for DVDs.
A
Must show
a new
labelled
curve to the
right.
P
D1
D
M
E
90195 Demand
(e) (ii) Fully explain the effect of an increase in demand for recording
studio time on the demand for DVDs.
A
The recording studio time and DVDs are
complements. As studio time has
decreased in price the quantity demanded
for studio time has increased, and the
demand for DVDs has increased because
studio time and DVDs are used together.
M
E
Correctly states
increase and
gives a valid
explanation
linking the
demand of
studio time with
the increased
demand for
DVDs
Uses correct
economic terms
– complements,
increase in
quantity
demanded and
increase in
demand
90195 Demand
(a) Define disposable income.
A
Income after tax is paid
M
E
A
M
E
Accurate
description
Accurate
description
with
examples
Accurate
definition
(b) Explain, using examples, what necessities are.
Basic goods essential to provide a minimum
standard of living eg food, clothing, shelter.
90195 Demand
(c) Fully explain what has happened to the proportion of income which
is spent on necessities from 2007 to 2008.
A
As income has increased the proportion
spent on necessities has decreased.
Income has increased by 100% but the
spending on necessities has only increased
by 25% This is because there is a limited
amount of necessities that can be
purchased.
M
E
The proportion
spent on
necessities
decreases as
income
increases. Uses
the information
from the table.
i.e as income
has increased by
100% spending
on necessities
has increased by
25%.
As for merit plus
an explanation
of the reason for
the less than
proportionate
increase in
spending. i.e.
there is a limited
amount of
necessities that
are required.
90195 Describe concepts related to
consumer choice and demand
JUDGEMENT
Achievement
7 x A or better
Achievement with
Merit
Achieved plus:
4 x M or better
Achievement with
Excellence
Merit plus:
2xE