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Question 21N.1.SL.TZ0.1a

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Date November 2021 Marks available [Maximum mark: 10] Reference code 21N.1.SL.TZ0.1a
Level SL Paper 1 Time zone TZ0
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
21N.1.SL.TZ0.1a
(a)

Explain how a decrease in income might affect the demand for normal goods and the demand for inferior goods.

[10]

Markscheme

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.

Answers may include:

  • definitions of demand, normal good, inferior good
  • diagram(s) to show a how a decrease in income affects the demand for a normal good and an inferior good
  • explanation of how a decrease in income reduces the demand for normal goods and increases the demand for inferior goods
  • examples of normal goods and inferior goods.

A maximum of [6] should be awarded if a candidate has only covered normal goods OR inferior goods.

Examiners report

This question was generally well answered by candidates with the best answers explaining how a decrease in income would lead to a fall in demand for normal goods and a rise in demand for inferior goods. These answers were supported by effective demand and supply diagrams and good use of real-world examples.

Syllabus sections