Pages in this set

Page 1

Preview of page 1
May 2010
(a) With reference to Extract 1 and Figure 1, explain the causes of the increase in the
price of food. Use a supply and demand diagram in your answer.
(8)

DIAGRAM SHOWING A SHIFT IN SUPPLY TO LEFT (DECREASE) AND A SHIFT IN D TO
THE RIGHT (INCREASE)…

Page 2

Preview of page 2
(6)

Price elasticity of demand is the responsiveness of demand a change in price.

PED for food is likely to be inelastic (when a change in price leads to a less than
proportionate change in demand). This is because food is a necessity and there
are no substitutes to food.…

Page 3

Preview of page 3
*(e) (ii) With reference to the concepts of private costs and external costs, assess the
possible economic effects of `using intensive farming methods and genetically
modified crops' (Extract 1, lines 11 and 12). Use an appropriate diagram in your
answer.
(12)



DIAGRAM SHOWING MSC, MPC, MSB AND TRIANGLE OF WELFARE…

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all resources »