1.2.6 Applications of demand and supply analysis to particular markets

You should now be confident with:• Demand curves

• The shape and slope • Movements along and shifts

• Supply curves• The shape and slope • Movements along and shifts

• Equilibrium price • Elasticities

• PED, YED, XED, PES

AQA ECON 1: MARKETS AND MARKET FAILURE

In this module you will need to

be able to demonstrate your

own understanding of

all of these concepts.

1.2.6 APPLICATIONS OF DEMAND AND SUPPLY ANALYSIS TO

PARTICULAR MARKETS

Candidates should be able to apply their knowledge of the basic model of demand and supply to markets, including commodity markets such as oil and copper markets, agriculture, health care, housing, sport and leisure

Write a script to go with this video.

TEAM TASK

In teams select one market from the list As a class you must ensure all markets are covered Each team is to prepare a presentation and hand out

applying your knowledge of supply and demand to your chosen market Carry out some research into your market (there are

some examples provided to get you started) Use supply and demand diagrams to explain a range of

scenarios e.g. in the commodities market what happened to price as a

result of US Government action? How is the World Cup affecting hotel prices in Brazil?

Include factors affecting demand and supply in your market

Include factors affecting elasticities in your market

CommodityAgricultureHealth care

HousingSport & leisure

COMMODITY MARKETS

The commodity market refers to all raw or primary commodities

Soft commodities are grown and harvested e.g. coffee and wheat

Hard commodities are extracted e.g. oil and copper

The FT and BBC report on the commodity markets

Global markets fall as end to US

stimulus beckons.

Commodities: What next after the

'super-cycle'?

Syria: Would military strikes push oil prices

to record highs?

'Worrying' decline in oil and gas production.

Primary sector industries extract raw materials or

natural resources.

The Economist – commodity price index.

AGRICULTURE

Agriculture is the farming of animals and crops for food, energy, drugs and other products used to sustain and enhance human life

The Department of Agriculture and Rural Development provides comprehensive reports on trends in this market

The European Commission also has a Department of Agriculture and Rural Development

Bad Java: Poor Coffee Crop Adds

to Indonesia's Woes.

Consider the impact of climate

change on the market.

Scottish lobster catches hit by long

winter, say fishermen.

Farming technology to get £160m government

investment.

Britain's wheat crop 'down by third after extreme weather‘.

Weetabix products hit.

HEALTH CARE

The health care market deals with the diagnosis, treatment and prevention of disease, illness, injury and any other human deficiencies

Operates in primary, secondary and tertiary sectors of society

Operates in both the public and private sector

The FT reports on the health care sector

Secondary sector industries turn raw

materials into partially finished or finished goods e.g. the pharmaceutical

industry.

Tertiary sector industries provide

a service e.g. a private dentist or

the NHS.

Private patients pay too much.

Mobility aid sales face Office of Fair Trading inquiry.

Does the NHS need its own price comparison

website?

NHS 'misses A&E waiting time target‘.

The Economist – Lucrative lifesavers.

HOUSING

The housing market focuses on residential real estate

Read what Wikipedia has to say about the demand and supply of housing

The Guardian regularly reports on the housing market

UK house prices rise again in August.

UK house prices rising 'at highest rate

since 2010.

Are you a housing market winner or

a loser?

UK housing market has turned a corner, says government.

Analysis of the housing market from

www.thisismoney.co.uk

SPORTS AND LEISURE

The sports and leisure market covers a wide range of activities including sport and recreation, health and fitness, outdoor pursuits, caravanning and gaming

Sports and leisure operates in both the secondary and tertiary sector

PWC report on global trends in sports and leisure markets

The BBC regularly reports on the business of sport

How significant is the sports and

leisure market to the UK

economy?

Brazil World Cup: Tourism board

worried by hotel prices.

How elastic are football tickets?

The football transfer window.

Can free leisure services get people fit?

The Economist - parks