Economics 9708 · AS & A Level · Income elasticity of demand

Income elasticity of demand — practice question

(a)[3]

Identify three reasons why there was a problem with the world cereal market in 2012.

(b)[4]

Explain whether the changes in the world cereal market would have been likely to increase the profits of all farmers.

(c)[5]

To what extent does evidence in the article support the argument that developing and developed countries are affected differently by rising cereal prices?

(d)[8]

Choose two government macroeconomic aims and consider how the changes in the world cereal market in 2012 might have affected a government’s ability to achieve those aims.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Overall world total grain supply was forecast to be 3% lower because adverse climate conditions affected major suppliers (drought and heat wave).

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