What students need to learn:
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Content
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Students should be able to:
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Additional Guidance Notes
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Movement along the supply curve
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Understand how a change in price causes a movement along the supply
curve.
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AS students are not expected to understand the relationship between
marginal costs and supply.
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Shifts in the supply curve
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Understand the factors which may cause a shift in the supply curve,
for example, changes in the costs of production, the introduction of new
technology, indirect taxes and government subsidies.
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Producer cartels may be a significant determinant of supply in some
markets, for example, oil.
Students should be able to apply both specific and ad valorem taxes
to a market.
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Price elasticity of supply
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Explain price elasticity of supply; understand factors that influence
price elasticity of supply.
Distinguish between the short run and long run in economics and
understand its significance to price elasticity of supply.
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Students may have to calculate and interpret numerical values of
price elasticity of supply.
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Post by Oscar Maldives.
