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Question 18M.1.SL.TZ2.1a

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Date May 2018 Marks available [Maximum mark: 10] Reference code 18M.1.SL.TZ2.1a
Level SL Paper 1 Time zone TZ2
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
18M.1.SL.TZ2.1a
(a)

Explain how the price elasticity of demand for a good might be affected by the number and closeness of substitutes.

[10]

Markscheme

Answers may include:

  • definitions of price elasticity of demand and substitutes
  • diagram of goods with different price elasticities of demand.
  • explanation that the more close substitutes a good has the more price elastic its demand tends to be
  • examples of how the number of substitutes a good has affects its price elasticity of demand.

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

Syllabus sections