Data Response–Champagne, Supply and Demand
Credit: I came across this useful practice data response question via a student’s blog associated with this teacher’s site: http://www.peteranthony.org/wordpress/
Image: Some rights reserved by epicxero
I think this is an excellent introduction to this 3rd paper which forms part of the IB Economics final assessment. The questions are straightforward, but you will need to pay close attention to the markscheme for these kinds of questions, which usually follow the same format.
1) The article (data to which to respond):
UK Newspaper, Daily Mail, on Champagne price decreases, October 2009
2) The questions
1. Define the following terms: a) demand, b) supply [4]
2. Using an appropriate diagram, explain one reason for why the price of a bottle of champagne has fallen? [4]
3. Using an appropriate diagram, explain one reason for why the price of champagne will probably rise next year? [4]
4. Using information from the text and your knowledge of economics, evaluate a decision not to raise the price of a bottle of champagne over the coming months before Christmas. [8]
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