RI 2024 H2 Price Mechanism and its Applications - A guide to essay questions

Y5 H2 Economics 2024 Price Mechanism and its Applications - Tutorial Package Price Mechanism and its Applications Section C: Essay Guiding Questions Essay Q1: - Learn Section 6 especially 6.1 before attempting to answer this question. - Why is there a need to allocate scarce resources? - What is meant by a free market? - Think about how you can integrate DD-SS diagrams into your answer. Essay Q2 Part (a) Do note that in any question where there is a shift in the DD and/or SS curve, you need to explain very clearly the price adjustment process. - You need good knowledge of DD-SS determinants and the applications of elasticities to answer parts a and b. As such, do learn the set of lecture notes especially pages 7 -13 on DD determinants, pages 15-19 on SS determinants, pages 19-21 on Combined shifts, pages 33 - 54 on Elasticities and pages 66-67 on Quota. - What is meant by revenue? How do you illustrate revenue from the DD-SS diagram? - How do you decide what are the demand determinants and the supply determinants in the preamble. - Can elasticities be applied to this question? What elasticities may not be relevant? - Have you considered the effect of combined shifts of DD and SS curves on total revenue? Part (b) Do begin your analysis from a fall in the price of milk instead of what causes the price of milk to fall. - When the cue word is ‘impact’, what do you examine in this context? - One related market may be the market for soy milk. What is their relationship? - What other markets can you think of which may have a different relationship with milk? Is it possible to have 2 related markets where one market affects demand while the other market affects supply? Essay Q3 Part (a) - For parts a and b, you need knowledge of DD and SS determinants as well elasticities (as in Qn 2 above) before attempting this question. - You need to get this correct: The fundamental issue for this question is whether a goods and services tax affects the demand or supply curve. - After you have decided on this, what elasticity may be relevant for your analysis on different types of goods? - Can you think of different examples of goods linked to the various factors affecting the relevant elasticity above? Part (b) - This question requires good application of how the 2 variables in the preamble affect demand and supply respectively. You need to clearly decide what causes a change in demand vs what causes a change in supply.

Y5 H2 Economics 2024 Price Mechanism and its Applications - Tutorial Package - You need to clearly categorise the different types of goods. There is a particular category of goods where the equilibrium quantity will definitely fall. What may that be? - Are you able to use DD-SS diagrams to illustrate the differing effects on quantity? - Did you use different examples of goods to illuminate your analysis? Essay Q4 Part (a) - Knowledge required same as Qns 2 and 3 - This