Scribd
Upload
145 views

Essay Exercise - Indifference Curve Analysis

The document provides a mark scheme and examiner report for a past exam question that asked students to explain consumer equilibrium using indifference curve analysis and how it relates to a consumer's demand curve. The mark scheme outlines the levels of response and criteria for full marks, including a sound explanation of indifference curves and budget lines and a clear link to the demand curve with accurate diagrams. The examiner report notes that stronger responses analyzed how a change in price would affect the equilibrium point and identified substitution and income effects on demand.

Uploaded by

Yashjeet Gurung RCS KJ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
145 views

Essay Exercise - Indifference Curve Analysis

The document provides a mark scheme and examiner report for a past exam question that asked students to explain consumer equilibrium using indifference curve analysis and how it relates to a consumer's demand curve. The mark scheme outlines the levels of response and criteria for full marks, including a sound explanation of indifference curves and budget lines and a clear link to the demand curve with accurate diagrams. The examiner report notes that stronger responses analyzed how a change in price would affect the equilibrium point and identified substitution and income effects on demand.

Uploaded by

Yashjeet Gurung RCS KJ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 7

Essay Exercise on Indifference Curve Analysis

M/J 2016 P42 Q3(a)

Question
With the help of diagrams, use indifference analysis to:
explain what is meant in economic theory by consumer equilibrium and how it is related to a consumer’s
demand curve. [12]

Mark Scheme
Explanation of consumer equilibrium, using indifference curves and budget lines, as point of
maximum satisfaction with given income and given prices. Derivation of a point on the demand curve from the
equilibrium point. The rest of the demand curve is only obtained by a change in the equilibrium. [12]

L4 (9–12) For a sound explanation of both budget lines and indifference curves and a clear link to the demand
curve with accurate clear diagrams and a clear understanding of the principles involved.
L3 (7–8) For an accurate reference to the question but with a more limited explanation, includes a link to the
demand curve, or with minor errors in the analysis or in the diagrams.
L2 (5–6) For an explanation of the equilibrium position but with no link to the demand curve; or with inaccurate
diagrams and weak explanation.
L1 (1–4) For an answer which has some basic correct facts but includes irrelevancies and errors of theory.

Examiner Report
The candidates who read the stem of the question and recognised the need to use indifference curve analysis
had the right approach to the answer. The better responses included an analysis which extended to show not
only the point of equilibrium of an indifference curve and the budget line but also the effect on demand if the
price of one of the goods changed and identified the substitution and income effects.

Task:
Read the following two sample model answers below and mark their responses based on the mark scheme
and provide feedback on how to improve the essay.

Level Mark given How to improve

Sample Model Answer 1

Sample Model Answer 2


Sample Model Answer 1
Sample Model Answer 2

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy