A heatwave in July 2013 in the United Kingdom resulted in sales of ice cream more than doubling. Extra workers were taken on to meet the higher demand. In recent years, the demand and supply conditions of ice cream have changed, leading to demand and supply becoming more elastic. The market has also been influenced by government policies and by changes in the country's economic growth rate.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2015). The mark or mark type is shown in brackets.

1. [1] The willingness
2. [1] and ability to sell a product/good(s) or service(s)
3. [1] The idea of making a product available/putting it on the market/producing a product
4. [1] a subsidy
5. [1] a tax/indirect tax/tariff
6. [1] the setting of a maximum price
7. [1] the setting of a minimum price
8. [1] changing the price of product produced by the public sector
9. [1] a subsidy will be likely to lower price (as a payment is given to producers)
10. [1] a tax/tariff will be likely to raise prices (as an extra cost is imposed on firms)
11. [1] a firm would not be able to charge more than a maximum price
12. [1] a firm would not be able to charge less than a minimum price
13. [1] the government may produce a range of products e.g. energy
14. [1] there may be closer substitutes
15. [1] making people more willing to switch between products
16. [1] the price may rise
17. [1] as products more expensive, people become more sensitive to price changes
18. [1] the product may become less of a necessity/more of a luxury
19. [1] this would mean a change in price would have more impact on demand
20. [1] the product may be taking up a larger proportion of people's income
21. [1] this would mean that a change in the price would be more noticeable
22. [1] the product has become less addictive
23. [1] this would mean that people will become more willing to alter their demand
24. [1] it may become easier to postpone buying the product
25. [1] this would mean that a rise in the price of the product would cause a greater percentage fall in demand
26. [1] a longer time period
27. [1] gives people more time to find substitutes
28. [1] output will be increasing
29. [1] this will raise demand for labour
30. [1] putting upwards pressure on wages
31. [1] higher demand for labour will reduce unemployment
32. [1] this will increase competition for workers
33. [1] firms may have to raise wages
34. [1] to attract workers
35. [1] unions will have stronger bargaining power
36. [1] higher output will increase the wages paid to workers on piece-rates
37. [1] pay linked to output
38. [1] economic growth may be associated with higher profits/higher revenue
39. [1] increasing firms' ability to pay higher wages
40. [1] whilst total demand may be increasing
41. [1] demand for certain products/skills may be falling
42. [1] structural unemployment may lower the bargaining power certain group of workers
43. [1] economic growth may arise due to advances in technology/higher investment
44. [1] this may increase the demand for skilled workers relative to unskilled workers
45. [1] this may reduce the wages of unskilled workers
46. [1] economic growth may be combined with inflation
47. [1] workers' wages may not rise in line with inflation
48. [1] some workers may have long term contracts with set wages
49. [1] it may take time for their wage rates to adjust
50. [1] the supply of some workers may increase by more than others
51. [1] economic growth is likely to involve change
52. [1] workers who are geographically or occupationally immobile may have to stay in low paid jobs
53. [1] may just increase employment