2022 SAJC JC1 H1 WA CSQ Suggested Answers w Examiners' Comments

ST ANDREW’S JUNIOR COLLEGE Weighted Assessment 1 (WA 1) General Certificate of Education Advanced Level Higher 1 ECONOMICS 8843 Suggested Answer w Examiner’s Comments © SAJC 2022

Suggested Answers (a)(i) With reference to Figure 1, describe the trend in the global price of honey from 2013 to 2019. [1] Answer: General rising trend (1) Examiners Comments: Skills: i. No need to provide refinement to the trend, as there is only 1 mark available for this question. (ii) With reference to Extract 1 , and using a demand and supply diagram , account for the general trend in the global price of honey. [4 Answer: 1st part of the question: Demand factor (1m) Extract 1, para 1: “popular with people looking for healthier alternatives to cane sugar and high-fructose corn syrup” → taste and preference towards honey → global demand for honey increases → demand curve for honey shifts to the right from D1 to D2 Or Extract 1, para 1: “being used more as an ingredient in shampoos, moisturizers and other personal-care products that companies market as naturally made” → if demand for personal care products that need honey to produce, derived demand for honey increases → global demand for honey increases → demand curve for honey shifts to the right from D1 to D2 Supply factor (1m) Extract 1, para 3: bee populations in several nations suffered severe declines in the decade because of colony collapse disorder, disease as well as pesticide usage. → reduce global supply of honey as bees are essential factors of production of honey, supply curve shifts left from S1 to S2 Price adjustment process (1m) Due to the increase in global demand for and decrease in global supply of honey, → there would be a shortage at the original price → consumers would compete with each other to bid up the prices → as price start to increase, quantity demanded would fall while quantity supply would increase → such upward pressure on prices would continue till the new equilibrium is attained → at the new equilibrium, the price of honey increased from P1 to p2 Diagram (1m)

Examiners Comments: Skills: i. Need to include the 0 (zero) at the origin of the diagram. ii. Key words in price adjustment process were missing (see phrases in bold in answer above). iii. Some scripts presented only one factor (either DD or SS factor) when there were two factors presented in extract 1. iv. Some scripts presented two demand factors instead of one DD factor and one SS factors for a balanced answer. v. Students need to remember tha