NZQA registered unit standard 26011 version 2 Page 1 of 3 Title Apply elasticity concepts to the demand and supply model Level 5 Credits 2 Purpose People credited with this unit standard are able to explain, and interpret the significance of, elasticity using 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 Explain elasticity using the demand and supply model. Evidence requirements 1.1 The explanation distinguishes between the different types of elasticity. Range 1.2 price elasticity of demand, income elasticity of demand, cross elasticity of demand, price elasticity of supply; calculations are not required. The explanation distinguishes between the degrees or values of elasticity. Range elasticity, inelasticity, unitary elasticity; calculations are not required. NZQA National Qualifications Services SSB Code 130301 New Zealand Qualifications Authority 2016 NZQA registered unit standard 26011 version 2 Page 2 of 3 Outcome 2 Interpret the significance of elasticity using the demand and supply model. Range elasticity – includes any two of – price elasticity of demand, income elasticity of demand, cross elasticity of demand, price elasticity of supply. Evidence requirements 2.1 The interpretation establishes the impact of elasticity upon market equilibrium given shifts in demand and supply. equilibrium includes – short-run, long-run. Range 2.2 The interpretation establishes the significance of elasticity for pricing decisions in terms of revenue maximisation. pricing decisions – one of – price increase, price decrease; elasticity – one of – elastic, inelastic, unitary elasticity. Range Replacement information This unit standard and unit standard 26010 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 Planned review date 31 December 2019 Status information and last date for assessment for superseded versions Process Version Date Last Date for Assessment Registration 1 16 October 2009 31 December 2016 Rollover and Revision 2 16 April 2015 N/A Consent and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. 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. NZQA National Qualifications Services SSB Code 130301 New Zealand Qualifications Authority 2016 NZQA registered unit standard 26011 version 2 Page 3 of 3 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