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Status information and last date for assessment for superseded versions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