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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, idenfy 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 informaon 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 quanes 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
