This document summarizes an economics model answer that addresses four questions about the price of wheat: Q1 defines composite demand, Q2 identifies two points of comparison between wheat price and stock changes, Q3 explains wheat price changes in 2010 using a diagram and extract, and Q4 evaluates ways a wheat importing government can stabilize domestic wheat prices. The document also lists the number of marks allotted to each question/section.

1. ECON 1 Model Answer
January 2012
Context 1: The Price of Wheat
0 1 Define the term ‘composite demand’ (Extract B, line 9). (5 marks)
0 2 Using Extract A, identify two significant points of comparison between changes in the
world price of wheat and changes in world stocks of wheat over the period shown.
(8 marks)
0 3 With the help of an appropriate diagram and the information in Extract B, explain why
the world price of wheat changed in 2010. (12 marks)
0 4 Using the data and your economic knowledge, evaluate different ways in which the
government of a country which imports large quantities of wheat can try to stabilise
wheat prices within the country.
This Paper’s Results:
1: 5 Marks
2: 8 Marks
3: 12 Marks
4: 23 Marks