Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

(a)[2]

Why is the demand for OTR tyres said to be a derived demand?

(b)[4]

Explain why the supply of OTR tyres was highly inelastic in 2006.

(c)[5]

Analyse, with a demand and supply diagram, the change in the market for OTR tyres during 2006.

(d)[3]

How could a shortage of OTR tyres affect the productivity of mining companies?

(e)[6]

Discuss whether the shortage of OTR tyres required government intervention.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Demand is derived when a product is wanted because it is used as an input into another product

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI