From 2030, most new car production in the United Kingdom (UK) will be of electric cars. Excluding the price of electric cars, explain the determinants of demand for electric cars and consider which of these determinants is likely to be of greatest significance at the present time.
Exam No: 9708_s24_qp_23 Year:2024 Question No:2(a)
Answer:
From 2030, the only new car production allowed in the United Kingdom (UK) will be for electric cars.
Excluding the price of electric cars, explain the determinants of demand for electric cars and consider which of these determinants is likely to be of greatest significance at the present time.
Follow the point-based marking guidance at the top of this mark scheme and award: \(\square\)
up to 3 marks for AO1 Knowledge and understanding up to 3 marks for AO2 Analysis
up to 2 marks for AO3 Evaluation.
AO1 Knowledge and Understanding (max 3 marks)
Knowledge and understanding of income, price and availability of substitutes and fashion, taste and attitudes.
For an explanation of what is meant by the role of income, price and availability of substitutes, complements, fashion, taste, and attitudes as determinants of demand. (1x3)
AO2 Analysis (max 3 marks)
For analysis of the significance at the present time of at least 2 of these determinants. e.g., attitudes may have a great significance because of an increased awareness of the impact on the environment. e.g., income may have a great significance if economies are in recession. e.g., if petrol prices rise leading to a fall in demand for petrol-driven cars then the demand for electric cars may rise.
Up to 2 marks for any developed point.
AO3 Evaluation (max 2 marks)
For a clear consideration which of the determinants is likely to be the most significant at the present time. Reserve 1 mark for a justified conclusion.
Please use a text box to show the mark split e.g., 321
Excluding the price of electric cars, explain the determinants of demand for electric cars and consider which of these determinants is likely to be of greatest significance at the present time.
Follow the point-based marking guidance at the top of this mark scheme and award: \(\square\)
up to 3 marks for AO1 Knowledge and understanding up to 3 marks for AO2 Analysis
up to 2 marks for AO3 Evaluation.
AO1 Knowledge and Understanding (max 3 marks)
Knowledge and understanding of income, price and availability of substitutes and fashion, taste and attitudes.
For an explanation of what is meant by the role of income, price and availability of substitutes, complements, fashion, taste, and attitudes as determinants of demand. (1x3)
AO2 Analysis (max 3 marks)
For analysis of the significance at the present time of at least 2 of these determinants. e.g., attitudes may have a great significance because of an increased awareness of the impact on the environment. e.g., income may have a great significance if economies are in recession. e.g., if petrol prices rise leading to a fall in demand for petrol-driven cars then the demand for electric cars may rise.
Up to 2 marks for any developed point.
AO3 Evaluation (max 2 marks)
For a clear consideration which of the determinants is likely to be the most significant at the present time. Reserve 1 mark for a justified conclusion.
Please use a text box to show the mark split e.g., 321
Knowledge points:
2.1.3 determinants of demand
2.1.5 causes of a shift in the demand curve (D)
2.2.6.1 price elasticity of demand
2.2.6.2 income elasticity of demand
2.2.6.3 cross elasticity of demand
Solution:
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