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Date November 2018 Marks available 10 Reference code 18N.1.SL.TZ0.1
Level Standard level Paper Paper 1 Time zone Time zone 0
Command term Explain Question number 1 Adapted from N/A

Question

Explain how the price mechanism reallocates resources when there is an increase in demand for a good or service.

[10]
a.

To what extent is advertising the most effective way of increasing the consumption of merit goods?

[15]
b.

Markscheme

Answers may include:

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.

a.

Answers may include:

Evaluation may include: the cost of advertising, the effectiveness of advertising and reference to alternative ways to increase the consumption of merit goods.

Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part B.

b.

Examiners report

[N/A]
a.
[N/A]
b.

Syllabus sections

Last exams 2021 » Section 1: Microeconomics » 1.1 Competitive markets: Demand and supply » Market Equilibrium » Equilibrium and changes to equilibrium
First exams 2022 » Unit 2: Microeconomics » 2.3 Competitive market equilibrium » 2.3.3 Functions of the price mechanism
Last exams 2021 » Section 1: Microeconomics » 1.1 Competitive markets: Demand and supply » Market Equilibrium
Last exams 2021 » Section 1: Microeconomics » 1.1 Competitive markets: Demand and supply
First exams 2022 » Unit 2: Microeconomics » 2.3 Competitive market equilibrium
Last exams 2021 » Section 1: Microeconomics
First exams 2022 » Unit 2: Microeconomics
First exams 2022
Last exams 2021

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