Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2 by jacarandaaus

Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2

“c02DecisionMakingInMarkets_PrintPDF” — 2022/5/25 — 13:13 — page 142 — #76

f. Identify two non-price demand factors and two non-price supply factors that might cause the equilibrium market price of avocados to: i. rise. (4 marks) ii. fall. (4 marks) iii. Illustrate the effects of changes in these four sets of non-price factors on four fully labelled D–S diagrams (one for the increase in demand, one for the decrease in demand, one for the increase in supply, and one for the decrease in supply). (12 marks)

Question 7 (13 marks)

Oil market

Pe1

D1 Qe1 Quantity

Oil market S1 P/unit ($)

CO RR EC

b. List and outline two important and likely non-price supply conditions that might help to explain this overall rise in the market price of oil. Using the diagram shown here as a template, construct a D–S diagram representing the oil market in 2020 (the original situation before the fall in price), and then show the hypothetical effects of these two new non-price supply conditions causing the oil price to rise. Label all new lines and points clearly. (5 marks)

P/unit ($)

a. List and outline two important and likely non-price demand conditions that might help to explain this overall rise in the market price of oil. Using the diagram shown here as a template, construct a D–S diagram representing the oil market in 2020 (the original situation before the rise in price), and then show the hypothetical effects of these two new non-price demand conditions causing the oil price to rise. Label all new lines and points clearly. (5 marks)

During 2022, the price of crude oil rose sharply, overall, from a low of around US$20 a barrel to a peak in May 2022 of about US$130. Oil is used for making petrol that is needed for road and air transport, generating power, and making plastics, chemicals and synthetic fabrics.

Pe1

E1 D1 Qe1 Quantity

c. Referring to the diagram that you completed for part b, explain the main steps whereby the equilibrium market price rose from Pe1 to a new higher equilibrium price of Pe2 . (3 marks) Question 8 (9 marks)

Look at figure 2.40 showing changes in the price index for sugar (US cents per pound weight). Sugar or sugar cane is used to produce foods and drinks, and even to make biofuel (petrol) for motor vehicles.

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Jacaranda Key Concepts in VCE Economics Units 1 & 2 Twelfth Edition

Jacaranda Key Concepts In VCE Economics 1 Units 1 & 2

Articles inside

8.8 Review

8.7 The responses by economic agents to improve environmental sustainability

8.4 The reasons why environmental sustainability is of importance to Australia and globally

8.3 Measures of the environmental sustainability of economic activity

8.5 The economic factors influencing the extent of environmental sustainability

8.6 Different perspectives about the issue of environmental sustainability

8.2 Definition and general nature of environmental sustainability

8.1 Overview

7.8 Review

7.7 The Australian government’s response to address inequality in the distribution of income and wealth

7.5 Economic factors affecting income and wealth inequality in Australia

7.6 Different perspectives about the distribution of income and wealth

7.4 The reasons why the distribution of income and wealth is an important issue

7.3 Measures of Australia’s distribution of income and wealth

7.2 Definition, nature and direction of income and wealth

7.1 Overview

6.8 Review

6.7 Economic responses and government policies involving international trade

6.6 Different perspectives about the issue of international trade

6.5 The economic factors influencing international trade

6.4 The benefits of international trade for Australia and the global economy

6.3 Measurement of Australia’s international transactions

6.2 Definition, nature and direction of international trade

6.1 Overview

5.8 Review

5.7 The Australian government’s economic responses to address changes in the labour market

5.6 Different perspectives about the changing labour market

5.3 Measures of Australia’s changing labour market

5.5 The economic factors influencing changes in Australia’s labour market

5.2 Definition and nature of the labour market

5.1 Overview

4.16 Review

standards

4.13 The potential costs of economic growth

4.12 The potential benefits of economic growth

4.10 Aggregate supply — its meaning, importance and factors affecting its level and economic activity

4.11 The measurement of economic growth using changes in Gross Domestic Product (GDP

4.8 BACKGROUND KNOWLEDGE: Overview of factors that may affect Australia’s level of economic activity

4.9 Aggregate demand — its meaning, importance and factors affecting its level and economic activity

4.6 Types of economic indicators

4.5 The business cycle

4.4 The five-sector circular flow model

4.3 The meaning of material and non-material living standards

3.5 Review

3.4 The effectiveness of strategies used by businesses to influence consumer behaviour

3.1 Overview

3.3 The effectiveness of strategies used by government to influence consumer behaviour

2.10 Review

2.9 Researching a contemporary Australian or global market

2.8 How changes in relative prices and profits affect Australia’s resource allocation

equilibrium price and quantity

2.3 BACKGROUND KNOWLEDGE: How markets make key economic decisions — the big picture

2.4 The law of demand and movements along the demand curve

2.5 The law of supply and movements along the supply curve

2.2 The nature of perfectly competitive and other types of markets in an economy

2.1 Overview

1.9 Review

1.5 Decision making in different economic systems

1.4 Making economic decisions

1.3 The basic economic problem of relative scarcity

1.8 Governments and their role as economic agents

1.6 Consumers and their behaviour as economic agents

1.1 Overview

1.7 Businesses and their behaviour as economic agents

1.2 What is economics?