EITHER

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2024). The mark or mark type is shown in brackets.

1. [AO1 1] Accurate demand diagram(s) demonstrating a movement and a shift.
2. [AO1 1] Explanation that a movement occurs due to a change in price.
3. [AO1 1] Explanation that a shift occurs due to a change in a non-price factor.
4. [AO2 1] Analysis of impact of price changes of a complement (e.g., increase in price of complement reduces demand for the good).
5. [AO2 1] Analysis of impact of price changes of a substitute (e.g., increase in price of substitute increases demand for the good).
6. [AO2 Max 2] Further development of analysis e.g. explaining 'due to the nature of joint demand' or 'direct replacement'. (Maximum of 2 marks if only one relationship is analysed for AO2).
7. [AO3 1] Assessment of the overall impact considering XED coefficients and their values.
8. [AO3 1] Valid conclusion about the overall size of the impact.
9. [AO1/AO2 Up to 8] Indicative content for Knowledge, Understanding, and Analysis:
10. Focus on how YED and PED are used, related to economic growth, rising incomes, and prices.
11. Advantages and disadvantages of using YED: classifies normal/inferior goods, influences product type, but less useful for pricing, based on historical data (inaccurate).
12. Advantages and disadvantages of using PED: measures impact of price changes, but suffers from historical data use, inappropriate during economic growth/rising incomes.
13. Any valid analysis linking these measures to increasing sales revenue during economic growth.
14. [AO3 Up to 4] Indicative content for Evaluation (A one-sided response cannot gain any marks for evaluation):
15. Assessment of usefulness of both YED and PED in comparison, for increasing sales revenue during economic growth.
16. Justified conclusion on which is the most useful method.