A-LevelEconomicsThe price system and the microeconomy9708/43 · Oct/Nov 2017 · Q225 Marks

Section B Answer two questions.

(a)Explain why an identical price fall would result in a different demand curve for a normal good from that for an inferior good. Use indifference curve analysis to support your answer.[12]
(b)'The only criticism of demand theory is that the consumer is not rational.' Consider whether you agree with this statement.[13]

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

[9-12] L4 for a reasoned answer with a conclusion illustrating all the points, shape of curve, equilibrium, construction of demand, change in price, change in demand,
[7-8] L3 for a competent answer that deals with part of the analysis, probably only briefly linking equilibrium to demand curve
[5-6] L2 for a less developed answer probably the demand curve link, or mention of elasticity
[1-4] L1 For an answer that has some basic correct facts but includes irrelevancies and errors of theory
[9-13] L4 for a sound discussion and comment with good illustrations and a clear understanding of the principles involved. 10 max no conclusion.
[7-8] L3 for a competent but less developed discussion idea of rationality or a more limited debate about the realism of the demands of the theory.
[5-6] L2 for a correct but undeveloped explanation with some attempt at analysis but only brief discussion with no conclusion.
[1-4] L1 For an answer that has some basic correct facts but includes irrelevancies and errors of theory

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