You should know the assumptions that underlie the law of demand. You must also know the exceptions to theEvery year there is a long question (75 marks) on supply and demand, and on average two of the nine short questions (32 marks) are on S&D. So that means by knowing this topic inside out you can possibly have 25% in the bank come June.
You should know the assumptions that underlie the law of demand. You must also know the exceptions to the law such as inferior products or snob goods.
This is what is on the Economics syllabus in relation to Demand & Supply
Like all topics in Economics, you need to know your definitions.
Define Demand & Supply (individual and market). You should also be able to define the different elasticity's, PED, YED and CED and explain in simple terms what they mean.
You should know the assumptions that underlie the law of demand. You must also know the exceptions to the law such as inferior products or snob goods.
You should also know the law of supply and the exceptions to the law such as minimum price or capacity constraint.
You must be able to interpret the Supply and Demand graphs. You need to be able to find the market equilibrium, you have to be able to graph shifts of both curves and discuss the reasons for possible movements along the curves or movements of the curves.
Elasticities
You need to be very comfortable with Elasticities. If you decided to answer Q1 last year (2012), elasticity’s accounted for 66 (16.5%) marks of the 400 available on the whole Exam. None of these questions were asking for a lot. It was basic interpretation of the numbers.
You should know how to calculate all three of the elasticities (PED, YED & CED). You should know what each number means or be able to interpret an elasticity, and you should know what affects or determines the elasticity of a product?
*** Exam analysis ***
Supply, Demand & Elasticities come up every year and it's usually Q1 on the paper.
Some Past mock questions
