Question 21M.3.HL.TZ0.1f
| Date | May 2021 | Marks available | [Maximum mark: 4] | Reference code | 21M.3.HL.TZ0.1f |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Explain | Question number | f | Adapted from | N/A |
Good A and Good B are in joint supply.
Using a diagram to support your answer, explain the impact on the market for Good B of an increase in the price of Good A.
[4]
PLEASE NOTE: This question part is not on the syllabus for first teaching 2020/first exams 2022.
The market for Good B
An alternative diagram would be with P of Good A on vertical axis and Q of Good B on horizontal axis and an upward sloping curve. The explanation should be consistent with this diagram. For full marks the response should refer to the quantity of Good B increasing and its price decreasing.
NB If the explanation is vague, [1] may be awarded for an appropriate example (such as any product and its by-product).
A candidate who has provided a correct diagram but refers to quantity supplied (rather than supply) of good B should not be penalized.
The vast majority of candidates appeared to be unaware of the concept of joint supply. Many referred to Good A and Good b as substitutes, complements or goods in competitive supply. Responses focused on demand factors rather than the idea of one product being a by-product of another.
