Lydia, Safiya and Aara's exam questions!!!!
Supply and demand
1- Define supply (2 marks)
2- Draw a demand and supply curve to show how high interest rates affect the demand for big ticket items (4 marks)
http://www.tutor2u.net/blog/index.php/gcse-economics/comments/demand-and-supply-in-action-minimum-price-on-alcohol
3- With reference to the source to what extent will Scotland's introduction of minimum price affect the demand for alcohol? (4 marks)
4- Evaluate the other factors that Scottish government can use to decrease alcohol consumption (6 marks)
1) Supply is the amount a supplier is willing and able to supply in a given time period at a given price.
ReplyDelete3) Scotland's introduction of a minimum price on alcohol will likely have a very small effect on demand for alcohol. This is due to it being a fairly inelastic product that is to some people addictive and is a low enough proportion of most people's income that they would be willing to pay the extra.
4) Alcohol is a demerit good, this is something that is considered to be unhealthy or harmful. One way to decrease demand for alchahol is through increasing the price to such a level that it becomes a considerable proportion of people's income, this would decrease demand mainly for people on a low income. Another way to decrease demand would be to introduce a cap on the amount of alchohol people can drink in one night although this would undoubtedly be very unpopular. A third way to decrease consumption would be to refuse to treat people for free on the NHS when the illness or disease is alchohol related, not only taking a massive cost and staffing burden of their hands but making people limit the amount they consume. The most effective way out of all of these would be to considerably increase the price due to the difficultly of enforcing the second proposal and the controversy over the last.
For Luke
Delete1- 2 marks (but to make it better don't use the word supply when defining supply!)
2- 4 marks
3-
4- 4 marks. Could have mentioned how Government could increase excise duty (mention more explicitly) and mention other SUPPLY factors as well as demand
Total- 10 marks (excl 3)
I like this assessment! Well done Lydia and Luke
ReplyDelete