Question 19M.1.SL.TZ2.1a
| Date | May 2019 | Marks available | [Maximum mark: 10] | Reference code | 19M.1.SL.TZ2.1a |
| Level | SL | Paper | 1 | Time zone | TZ2 |
| Command term | Explain | Question number | a | Adapted from | N/A |
Explain two factors which could shift a firm’s supply curve to the left.
[10]
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.
Answers may include:
- definition of supply, supply curve
- diagram to show a shift in supply to the left
- explanation of two of: increases in the costs of factors of production; increases in prices of related goods; increased indirect taxes; other factors such as: changes in regulations, objectives of the business, the weather, labour disputes, etc
- examples of factors reducing supply in practice.
The candidates that completed the highest achieving responsesto this question used supply theory to explain two factors that affect a firm’s supply curve such as: rising costs of different factors of production, indirect tax increases and supply-side shocks like poor weather conditions in agriculture. Where students focused on the rise in two resource costs such as labour and raw materials this was credited as two factors. Candidates that accessed the highest marks supported their answers with clearly labelled and annotated demand and supply diagrams along with effective real-world examples to illustrate.
