Summative+assessment+tasks+Markets

=The task is to split into 3 groups each answering one question. You will then need to "teach" the other students the answer. Your grade will depend on the efforts of the whole group so work well together! =

=1 = =(a) Define ‘price elasticity of demand’ and explain how it is measured. (8) = =(b) With the use of examples, explain why some products have a low price elasticity while others have a high elasticity. (8) = =(c) If you were employed as an economist by a business, explain why a knowledge of the price elasticity of demand of your product would be useful. (9) = =(Total 25 marks) = =2= = = =(a) Explain why and how a buffer stock scheme might be used to stabilise prices in a market economy. (12) = =(b) Evaluate the difficulties involved in the operation of such a scheme.(13) = =(Total 25 marks) = = = = = 
 * 3 **