Transcript Equilibrium
Equilibrium Lesson Objectives: -Use a diagram to illustrate disequilibrium and explain this scenario using key terminology -Explain how shifts in demand and supply will alter equilibrium price and quantity in different markets -Analyse how marks are awarded for the 9 mark question -Assess own and others ability at effectively answering 9 mark equilibrium questions Starter • Complete the worksheet task from yesterday (if necessary) to check and consolidate your knowledge of equilibrium Knowledge Recap 1. 2. P P S S D2 D D O 3. P D2 O Q 4. S2 P S O D Q S S2 O D Q Past Paper Question Extract : How to reduce binge drinking? “A change in behaviour, not pricing, is needed. There are laws against drunken behaviour and selling alcohol to under 18s, but they are not always enforced rigidly enough; they may also need to be made stricter. Most major supermarkets are careful not to sell alcohol to anyone under 18, but would 21 be a more sensible age limit? Meanwhile, some smaller shops are shockingly casual about the under-18 rule.” Source: news reports, 2008 QUESTION: With the help of a demand and supply diagram, explain how an increase in the age limit to 21 might affect the market for alcoholic drinks. (9 marks) QUESTION: With the help of a demand and supply diagram, explain how an increase in the age limit to 21 might affect the market for alcoholic drinks. (9 marks) So what should the diagram look like? Breakdown of the marks for the diagram: - Axes labelled (price and quantity or P and Q will do) Original demand and supply curves correctly labelled Co-ordinates drawn in at the initial equilibrium and labels such as P1 and Q1 Leftward shift of the demand curve Co-ordinates drawn in at the new equilibrium and labels such as P2 and Q2 Any other relevant feature of the diagram (e.g. the amount of excess supply at the original equilibrium) How to answer So, other than the diagram, how else can we get the marks? The written response must include: Definition of demand An explanation of why the raising of the age limit shifts the demand curve leftward: An explanation of the adjustment to the new equilibrium price in terms of the response to excess supply in the market: And could also: Discuss the PED of alcohol: Discuss the fact that this might only reduce demand by a small amount and maybe for only particular types/brands of alcohol How did you do? • Using the mark scheme from the previous slides, give yourself a mark out of 9 and then set targets for your next attempt at a 9 mark question. Now you know what to do, work together and have another go… Work together in pairs to write an A grade answer to the 9 mark question you have been presented with. Be prepared to potentially present your answer to the class! During the task, ensure you are meeting the targets you set yourself from the last task – highlight where you have shown this improvement! You have 10 mins! “With the help of an appropriate diagram explain the reasons for falling prices in the used car market” Question “With the help of an appropriate diagram explain how rising incomes in China and India have affected the global price of wheat” …Review… • How well did you and our partner do? Did you successfully “Explain how shifts in demand and supply will alter equilibrium price and quantity in a particular market” ? • Could you list 2 key things to remember when answering a 9 mark question? Put these on a post-it as you leave to prove what you know!