Chopsticks

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Chopsticks!

• Feedback on exam practice

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Aims of today

• For you to understand the exam board marking
  criteria so that you can boost your
  marks/grades.
• To further your understanding of K, Ap, An Ev
  skills needed
• To show you the range of terminology that you
  have covered and NEED to use in your answers!
• Essential to include diagrams where relevant!

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Priority of this feedback

• For you to make notes on how you could have
  improved your answers
• Focus on where the EVALUATION marks are awarded!

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1) Using a demand and supply diagram, explain
why the price of chopsticks has nearly doubled in
recent years (Extract 1, Paragraph 4). (7)

• Diagram. Must show
• original equilibrium (1)
• Inward shift in S (1)
• New equilibrium (1)
• Movements on axis (-1 if not present)
• LABEL ALL CURVES! no labels no marks!

Worth 3 marks
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1) Using a demand and supply diagram, explain
why the price of chopsticks has nearly doubled in
recent years (Extract 1, Paragraph 4). (7)

• Explanation. Must explain why prices rise
  using ec theory
• Avoid too much waffle re-using case study story

• Ec theory
• Identify that the tax will effect S because it
  increases the cost of production (1 mark)
• The producers will pass this on as a higher price
  to consumers
• Producers will not be able to make as much with
  increased costs
• Consumers will not be willing to buy as many
  chopsticks
• Consumer surplus, income substitution effect

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2. Using the information provided, discuss the
degree to which chopsticks may be considered a
normal good. (4)

• Clear definition of normal good (upto 2 marks)
• The more income a consumer has, the more they
  will buy of normal goods and a fall in income
  will cause a fall in demand.
• Are chopsticks normal or luxuries (reference to
  case study)?

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3. What can be learnt about the cross price
elasticity between wooden chopstick and plastic
ones? (5)

• Clear definition of CPeD or formula (upto 2 mark)
• Written or numerical example of an increase in
  price of wooden chopsticks will increase the
  demand of plastic chopsticks (1 mark)
• They are close substitutes for each other will
  have a positive(1 mark) and elastic (1 mark)
  elasticity number
• EVALUATION. 2 marks.
• If the govt bans the export of wooden chopsticks
  the CPeD value will change in the future as
  they will no longer be a substitute!

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4. Discuss the likely impact of rising chopstick
prices on restaurant owners in Japan. (10)
Knowledge Application 6 marks max

• They will have three choices to decide on
• a) Keep their traditional wooden chopsticks and
  face higher costs so can either have a fall in
  profits (due to higher costs) or increase food
  prices to customers depends on the PeD for
  food.
• b) substitute to plastic chopsticks which might
  effect their level of demand tastes!
• c) look at alternative chopstick options
  force restaurant owners to

Evaluation 4 marks
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4. Discuss the likely impact of rising chopstick
prices on restaurant owners in Japan. (10)
Knowledge Application 6 marks max

• Reference to consumer surplus (1) and diagram (3)
  
• Reference to producer surplus (1) and diagram (3)
  
• Or higher costs may be absorbed by the business
  and a fall in profits (1) for the businesses,
  which could mean an incentive to work more
  productively efficient (1) or cut back on
  other costs e.g. labour (1) so the price might
  stay the same.

Evaluation 4 marks
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EVALUATION
4 marks need to show judgement assess the
impact. (2 marks per comment developed)

• Depends on the PeD elasticity whether consumers
  would react to the change in price, whether the
  brand name/customer loyalty will help/advertising
• Depends on the YeD whether a normal or luxury
  good
• Depends on the level of competition in the
  restaurant market

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5. Assess the external consequences of
introducing recycled chopsticks. (10)

• External costs of production will there be more
  problems through the production of alternative
  chopsticks compared to the deforestation option
  for wooden chopsticks? Pollution, noise and
  transportation issues.
• External costs of consumption of recycled
  chopsticks I dont think soEVALUATION POINT
  being that there will be more EXTERNAL BENEFITS!
• Need a diagram of either positive or negative
  externalities!

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6. Evaluate the effectiveness of the Chinese
government policies to reduce deforestation. (12)
Knowledge Application 6 marks max

• Self interest for political gain
• Is it a short term quick fix?
• Could it create a black market?
• What problems will it cause if they ban exports
  of wooden chopsticks on the whole economy?
• Is the tax ban based on imperfect information
  to what extent does chopsticks cause the
  deforestation or is this caused by other
  issues?
• What are the costs of the tax policy/ alternative
  chopstick options?

Evaluation 4 marks
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6. Evaluate the effectiveness of the Chinese
government policies to reduce deforestation. (12)
Knowledge Application 6 marks max

• Up to 3 marks for a written explanation
• 1 mark per relevant point 2 for development
• 3 marks for relevant diagram
• 6 marks for evaluation

Evaluation 6 marks
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Overall key skills

• You need to start with definitions or formulas
  more!
• Vital to label diagrams clearly/accurately.
• Must read over the elasticity issues its not
  just the calculations but application as well.
• Evaluation marks to gain B As.