7.3.1 Case Studies

• Case studies in Edexcel GCSE Economics allow students to demonstrate their ability to apply economic concepts and theories
• Case studies use detailed, contextual scenarios, whereas other assessments use discrete, decontextualized
• In which section of the Edexcel GCSE Economics curriculum are case studies used?

  Application of Knowledge
• Case studies test critical thinking, analysis, and evaluation skills.


  True
• Market demand refers to the total quantity consumers are willing and able to buy at various prices
• Understanding market concepts is essential for analyzing case studies in economics.


  True
• How does a new trend affecting demand for vegan products impact supply and demand curves?

  Demand curve shifts right
• Economic models help simplify and understand complex market dynamics in case studies.


  True
• What are two key characteristics of case studies in economics?

  Detailed scenarios and critical thinking
• What does price elasticity of demand (PED) measure?

  Responsiveness to price changes
• Price elasticity of demand measures the responsiveness of quantity demanded to a change in price.


  True
• Market supply is the total quantity of goods producers are willing and able to sell at various prices
• Match the elasticity type with its definition:

  PED ↔️ Responsiveness of quantity demanded to price change

  PES ↔️ Responsiveness of quantity supplied to price change
• Supply and demand curves intersect at the point of equilibrium
• Seasonal availability of coffee beans can cause fluctuations in coffee prices.


  True
• What does elasticity measure in economics?

  Responsiveness to price changes
• Match the economic decision with its stakeholder:

  Lowering interest rates ↔️ Borrowers

  Raising taxes ↔️ Citizens

  Introducing subsidies ↔️ Domestic industries
• Raising taxes can increase revenue for public services
• Lower interest rates during the 2008 financial crisis are a case study for evaluating economic decisions.


  True
• Elasticity is used to understand market dynamics in a case study.


  True
• What is a positive consequence of introducing a tax on cigarettes?

  Increased tax revenue
• Case studies assess the application of knowledge, while other assessments focus on recall of knowledge.


  True
• Case studies test critical thinking, analysis, and evaluation skills.


  True
• Case studies assess the application of knowledge, while other assessments focus on recall
• What is the definition of market equilibrium?

  Demand equals supply
• What does price elasticity of demand (PED) measure?

  Responsiveness to price changes
• Supply and demand curves intersect at the point of equilibrium
• Case studies test the application of knowledge rather than simple recall
• Match the concept with its definition:

  Market Demand ↔️ Quantity consumers are willing to buy

  Market Supply ↔️ Quantity producers are willing to sell

  Market Equilibrium ↔️ Demand equals supply
• The market equilibrium is the point where market demand equals market supply
• What is market demand defined as?

  Consumers' willingness to buy
• What does the market equilibrium represent?

  Stable price and quantity
• Understanding market concepts is essential for analyzing real-world economic scenarios.


  True
• Order the steps in analyzing a case study using economic models:

  1️⃣ Apply supply and demand curves

  2️⃣ Determine equilibrium price and quantity

  3️⃣ Measure elasticity
• What happens to the demand curve when a new trend increases demand for vegan products?

  Shifts to the right
• A new tax on cigarettes is an example of how PED can affect consumption
• A rightward shift in the demand curve leads to higher prices and quantities.


  True
• What is a potential positive consequence of lowering interest rates?

  Increased borrowing and investment
• What is a negative consequence of deregulation?

  Lower quality
• Order the steps to draw conclusions from a case study:

  1️⃣ Apply economic models

  2️⃣ Evaluate economic decisions

  3️⃣ Support conclusions with evidence