What students need to learn:
Content
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Students should be able to:
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Additional Guidance Notes
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Movement along the demand curve
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Understand how a change in price causes a movement along a demand
curve.
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Students are not expected to have an understanding of utility theory
or indifference curve analysis.
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Shifts in the demand curve
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Understand factors which may cause a shift in the demand curve, for
example, changes in the price of substitutes or complementary goods; changes in
real income and tastes.
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Price, income and cross elasticities of demand
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Explain price, income and cross elasticities of demand. Understand
factors that influence elasticities of demand and their significance to firms
and government.
Understand the relationship between price elasticity of demand and
total revenue.
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Students may have to calculate and interpret numerical values of
price, income and cross elasticity of demand.
Students should understand the significance of elasticity to firms
and government in terms of the imposition of indirect taxes and subsidies;
changes
in real income and changes in the price of substitute and complementary
goods.
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Post by Oscar Maldives.
