Answer two questions.

Mark scheme

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

1. [9-12] L4 For a clear explanation, logically presented dealing with each point.
2. [7-8] L3 For a fair but undeveloped explanation either dealing with a single product or dealing with a number of products but not explaining the equation properly. With indifference curves the reasons for the slopes of the curves will probably not be given.
3. [5-6] L2 For a briefer explanation, probably not fully explaining the equilibrium in relation to price, or not explaining more than one product. Or with indifference curves just baldly mentioning the tangent without an explanation.
4. [1-4] L1 For an answer that has some basic correct facts but includes irrelevancies and errors of theory.
5. [9-13] L4 For a reasoned and clear discussion, logically presented dealing with income, substitution, normal, Giffen.
6. [7-8] L3 For a fair but undeveloped discussion probably with correct normal good but errors on Giffen good.
7. [5-6] L2 For a briefer discussion with minor errors either in income/substitution or in Giffen good.
8. [1-4] L1 For an answer that has some basic correct facts but includes irrelevancies and errors of theory.