2023 AQA A-level ECONOMICS 7136/2
Paper 2 Economy Question Paper &
Mark scheme (Merged) June 2023
[VERIFIED]
The Law of Demand - ✔✔ANSWER✔✔consumers
will buy more of a good when its price is lower
and less when its price is higher
The Law of Supply - ✔✔ANSWER✔✔producers
offer more of a good as its price increases and less
as its price falls
,Equilibrium Price - ✔✔ANSWER✔✔the price at
which the quantity demanded equals the quantity
supplied
Excess Supply - ✔✔ANSWER✔✔the amount by
which quantity supplied exceeds quantity
demanded when the price of a good exceeds the
equilibrium price
Surplus - ✔✔ANSWER✔✔A situation in which
quantity supplied is greater than quantity
demanded
Excess Demand - ✔✔ANSWER✔✔The situation
that exists when demand is greater than supply.
Deficit - ✔✔ANSWER✔✔A situation in which
quantity supplied is less than the quantity
demanded
,Economics - ✔✔ANSWER✔✔A social science that
studies how people seek to satisfy their needs and
wants by making choices
Price Elasticity of Demand - ✔✔ANSWER✔✔a
measure of how much the quantity demanded of
a good responds to a change in the price of that
good.
Income Elasticity of Demand - ✔✔ANSWER✔✔a
measure of the responsiveness of the quantity
demanded to changes in income.
Cross Price Elasticity of Demand -
✔✔ANSWER✔✔measures the response of
demand for one good to changes in the price of
another good
PED Formula - ✔✔ANSWER✔✔% change in
quantity demanded / % change in price
, YED Formula - ✔✔ANSWER✔✔% change in
quantity demanded / % change in income
XED Formula - ✔✔ANSWER✔✔% change in
quantity demanded of good X / % change in price
of good Y
Luxury Good - ✔✔ANSWER✔✔a good with an
income elasticity greater than 1 for which demand
rises by a greater amount than the rise in income.
Normal Good - ✔✔ANSWER✔✔a good for which
the demand increases as income rises and
decreases as income falls
Veblen Good - ✔✔ANSWER✔✔A good with a
positively sloped demand curve. As price
increases people buy more of these goods to
demonstrate their social status.
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