Theme 1 Flashcards
(8 cards)
1
Q
What is price elasticity of demand?
A
How the quantity demanded of a good responds to a change in the price
2
Q
What is the PED formula?
A
% change in q demanded/ % change in price x 100
3
Q
A
PED> 1 means demand is elastic. % change in price will cause a larger % change in q demanded
Higher the PED the more elastic demand is.
4
Q
How do you answer a 5 mark question?
A
- no evauluation marks
- 2 application marks
- just answer the question
- can include a definition
5
Q
How to answer an 8 mark question?
A
- may ask for 2 factors
- 2 knowledge
- 2 app
- 2 anal
- 2 eval
6
Q
How to answer a 10 marker question?
A
- may ask 2 factors 3-4 chains
- 1 factor: 1 detailed analysis 5-6 chains
- costs and revenue diagram: define, give a cost and revenue diagram and explain what is occurring in the diagram
7
Q
A
- 2 groups “effect on consumers and producers”
8
Q
How to answer a 15 marker?
A
- develop analysis in depth 10 chains of reasoning.
