1.2.6 Applications of demand and supply analysis to
particular markets
You should now be confident with:
• Demand curves
• The shape and slope
• Movements along and shifts
• Supply curves
• The shape and slope
• Movements along and shifts
• Equilibrium price
• Elasticities
•
In this module
you will need to
be able to
demonstrate your
own
understanding of
all of these
concepts.
PED, YED, XED, PES
AQA E CON 1: M ARKETS AND
MARKET FAILURE
1.2.6 A PPLICATIONS
A NALYSIS

OF
D EMAND
AND
S UPPLY
TO PARTICULAR MARKETS
Candidates should be able to apply their
knowledge of the basic model of demand and
supply to markets, including commodity markets
such as oil and copper markets, agriculture,
health care, housing, sport and leisure
Write a script to go with this video.
T EAM
Commodity
Agriculture
Health care
Housing
Sport & leisure



TASK
In teams select one market from the list
As a class you must ensure all markets are covered
Each team is to prepare a presentation and hand out
applying your knowledge of supply and demand to
your chosen market


Carry out some research into your market (there are
some examples provided to get you started)
Use supply and demand diagrams to explain a range of
scenarios e.g.




in the commodities market what happened to price as a
result of US Government action?
How is the World Cup affecting hotel prices in Brazil?
Include factors affecting demand and supply in your
market
Include factors affecting elasticities in your market
C OMMODITY
Primary sector
industries
extract raw
materials or
natural
resources.
The Economist
– commodity
price index.
MARKETS

The commodity market refers to all raw or primary
commodities

Soft commodities are grown and harvested e.g.
coffee and wheat

Hard commodities are extracted e.g. oil and copper

The FT and BBC report on the commodity markets
Commodities:
What next
after the
'super-cycle'?
Global markets fall
as end to US
stimulus beckons.
Syria: Would military
'Worrying' decline in
strikes push oil prices oil and gas production.
to record highs?
A GRICULTURE

Agriculture is the farming of animals and crops for food,
energy, drugs and other products used to sustain and
enhance human life

The Department of Agriculture and Rural Development
provides comprehensive reports on trends in this market

The European Commission also has a Department of
Agriculture and Rural Development
Consider the
impact of
climate
change on the
market.
Bad Java: Poor
Coffee Crop Adds
to Indonesia's
Woes.
Scottish lobster
catches hit by long
winter, say fishermen.
Farming technology to
get £160m government
investment.
Britain's wheat crop
'down by third after
extreme weather‘.
Weetabix products hit.
H EALTH
Secondary sector
industries turn raw
materials into
partially finished
or finished goods
e.g. the
pharmaceutical
industry.
Tertiary sector
industries provide
a service e.g. a
private dentist or
the NHS.
Does the NHS need
its own price
comparison
website?
CARE

The health care market deals with the diagnosis,
treatment and prevention of disease, illness, injury and
any other human deficiencies

Operates in primary, secondary and tertiary sectors of
society

Operates in both the public and private sector

The FT reports on the health care sector
Private patients pay
too much.
Mobility aid sales
face Office of Fair
Trading inquiry.
NHS 'misses
A&E waiting
time target‘.
The Economist
– Lucrative
lifesavers.
H OUSING
Analysis of the housing
market from
www.thisismoney.co.uk

The housing market focuses on residential real estate

Read what Wikipedia has to say about the demand
and supply of housing

The Guardian regularly reports on the housing market
UK house prices rise
again in August.
UK house prices
rising 'at highest rate
since 2010.
Are you a housing
market winner or
a loser?
UK housing market
has turned a
corner, says
government.
S PORTS
How significant
is the sports and
leisure market to
the UK
economy?
The football
transfer
window.
AND LEISURE

The sports and leisure market covers a wide range of
activities including sport and recreation, health and
fitness, outdoor pursuits, caravanning and gaming

Sports and leisure operates in both the secondary and
tertiary sector

PWC report on global trends in sports and leisure markets

The BBC regularly reports on the business of sport
Brazil World Cup:
Tourism board
worried by hotel
prices.
How elastic are
football tickets?
Can free leisure
services get
people fit?
The Economist
- parks