RI 2025 H2 Y6 Preliminary Examination – Examiners Report

ECONOMICS Higher 2 Syllabus 9570 Examiner’s Report Year 6 Preliminary Examination 2025 R a f f l e sI n s t i t u t i o n N u r t u r i n g t h e T h i n k e r , L e a d e r & P i o n e e r TEL: 65 6419 9888 ● FAX: 65 6419 9898 http://www.ri.edu.sg ● One Raffles Institution Lane, SINGAPORE 575954

Y6/9570/Prelims/2025 2 © RI 2025 [Turn Over ECONOMICS Y6 H2 Preliminary Examination 2025 Paper 9570/01 Paper 1 Question 1 Electric Vehicles (a) (i) With reference to Table 1, explain how changes in prices of EV batteries might have affected sales of EVs over the period 2019 to 2021. [2] Suggested Answer ▪ Table 1 shows price of EV batteries falling and EV sales rising from 2019 to 2021 ▪ As EV batteries are inputs, the fall in price reduces the production cost of EVs. Thus , supply of EVs rises, causing a fall in price that increases the quantity demanded i.e. sales [in million units] Mark Scheme: - 1 m for link to input and production cost - 1 m for link to SS, price and sales (quantity demanded) Examiners’ Comments: Most answers were awarded the full 2m, though some were exceedingly long - complete with diagrams and detailed adjustment process. For a 2-mark question, understanding the gist that inputs affect the supply of the final good - EVs, thus price and quantity will suffice. The following are areas for improvement: - Batteries are not complements, but inputs. Complements refers goods that are in joint demand. They do not have the same meaning as inputs – which are a derived demand or factor of production for EVs - Some answers stated that both share an inverse relationship without any further economic reasoning. Others did not link their analysis to a change in the price of EVs – which is paramount in determining the change in sales volume - Some answers applied PED to examine the effect on revenue when in this context, Table 1 clearly indicated that sales in ‘million units’ i.e. quantity. (ii) Explain one possible reason why the above relationship was not observed in 2022 and 2023. [2] Suggested Answer ▪ Observation: While price of batteries rose, EV sales continued to rise ▪ Analysis: any 1 reason to explain ‘there is no ceteris paribus in reality – i.e. changes in other determinants affect the sales of EVs. These increases in demand and/or increase in supply lead to a rise in equilibrium quantity that outweighs the fall in quantity due to more expensive batteries ▪ switch in taste and preference towards EVs due to convenience; intensive advertising & promotion by EV producers; or people care for a greener environment as EVs reduce carbon emissions – demand rises, causing sales i.e. equilibrium quantity to increase ▪ price war amongst EV firms/government subsidy in China (that reduces production cost) – fall in price of EVs causing a rise in quantity demanded

Y6/9570/Prelims/2025 3 © RI 20