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← Economics notes
Edexcel IAL·Economics·Unit 1: Markets & Market Failure

Answer Structures, Diagrams & Formulae

3 min read

Match the depth to the marks. The higher the tariff, the more evaluation matters:

Tariff How long should my answer be?

Match the depth to the marks. The higher the tariff, the more evaluation matters:

MarksTypical commandWhat to include
4–5Explain / Calculate / DrawOne or two developed chains (KAA). A diagram if relevant. No evaluation.
8–10ExamineApply to the data, 1–2 strong analysis chains + the start of evaluation.
12Discuss / Assess~2 KAA points + ~2 evaluation points + a short judgement.
15Assess / EvaluateAs 12 with greater depth and a clearly prioritised conclusion.
25Evaluate / To what extentPlan first. 2–3 developed KAA paragraphs, each answered by evaluation, then a substantiated conclusion that weighs the factors.

KAA = Knowledge, Application, Analysis. Aim for roughly balanced KAA and evaluation on 12+ tariff questions, and always finish with a judgement.

Must-know Diagrams to draw from memory

Economics is a diagram subject. You should be able to draw each of these — fully labelled — without notes:

    PPF — points on/inside/outside, shifts, capital vs consumer goods
    Demand & supply — shifts, equilibrium, excess demand & excess supply
    Elasticity — elastic vs inelastic demand; PED & total revenue
    Consumer & producer surplus
    Indirect tax (specific & ad valorem) with incidence, and subsidy
    All four externality diagrams with the welfare-loss triangle
    Tax to internalise a negative externality; subsidy for a merit good
    Maximum price (shortage) and minimum price (surplus)

Formulae Everything you must be able to calculate

`` % change = (new − old) ÷ old × 100 PED = %ΔQ demanded ÷ %ΔPrice · YED = %ΔQ demanded ÷ %ΔIncome XED = %ΔQ demanded of A ÷ %ΔPrice of B · PES = %ΔQ supplied ÷ %ΔPrice Total revenue = Price × Quantity Tax revenue = tax/unit × quantity · Subsidy cost = subsidy/unit × quantity ``

Show your working and always include units (£, %, units).

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More Economics notes

How Unit 1 is Assessed

Nature of Economics

How Markets Work

Market Failure