NZQA registered unit standard
26010 version 2
Page 1 of 3
Title
Analyse economic events using the demand and supply model
Level
5
Credits
2
Purpose
People credited with this unit standard are able to demonstrate
understanding of, and analyse economic events by means of,
the demand and supply model.
Classification
Economic Theory and Practice > Micro Economics
Available grade
Achieved
Explanatory notes
1
Definition
Demand and supply model is a graphical demonstration, supported by a narrative
giving reasons for shifts in demand or supply curves and consequential adjustments
to price and output levels.
2
References
Callander, Andrew, Understanding the Economic Environment, 2nd (or subsequent)
ed. (Wellington: Lexis Nexis, 2004).
Stewart, James, Rankin, Keith, Economic Concepts and Applications: The
Contemporary New Zealand Environment, 4th (or subsequent) ed. (Auckland:
Pearson, 2008).
Outcomes and evidence requirements
Outcome 1
Demonstrate understanding of the demand and supply model.
Evidence requirements
1.1
The derivation of the demand curve is explained in terms of quantity demanded
at different price levels.
Range
demand – individual, market.
1.2
The derivation of the supply curve is explained in terms of quantity supplied at
different price levels.
1.3
The equilibrium level of quantity traded and a price consistent with the demand
and supply model is established.
1.4
The causes of shifts in the demand curve are described in terms of the model.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
26010 version 2
Page 2 of 3
1.5
The causes of shifts in the supply curve are described in terms of the model.
1.6
Shifts in equilibrium resulting from performance criteria 1.4 and 1.5 are
illustrated in terms of their impact on the price and quantity traded.
1.7
The stability of equilibrium is explained and illustrated in terms of the operation
of the automatic mechanism which exists at disequilibrium.
Outcome 2
Analyse economic events by means of the demand and supply model.
Evidence requirements
2.1
The analysis illustrates and explains the impact of the economic event by
means of shifts in demand and supply curves, and establishes the
consequences for equilibrium price and output levels.
2.2
The analysis predicts the impact of the economic event upon consumers and
producers in terms of the demand and supply model.
Replacement information
This unit standard and unit standard 26011 replaced unit
standard 8410.
Planned review date
31 December 2019
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
16 October 2009
31 December 2016
Rollover and
Revision
2
16 April 2015
N/A
Consent and Moderation Requirements (CMR) reference
0116
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
26010 version 2
Page 3 of 3
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
Comments on this unit standard
Please contact NZQA National Qualifications Services nqs@nzqa.govt.nz if you wish to
suggest changes to the content of this unit standard.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016