ACHIEVEMENT STANDARD 90983

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DESCRIBE CONCEPTS RELATED TO CONSUMER CHOICE AND DEMAND

Credits 4

Consumer refers to an individual or household that demands a good or service.

Consumer choices refer to economic decisions a consumer makes:

• as a result of scarcity (unlimited wants greater than limited means) and which incur an opportunity cost.  This includes consideration of the values that determine those choices
• in response to changes in price and non-price factors affecting demand.

Demand refers to decisions a consumer makes about the quantity of a good or service they are willing and able to buy at a range of prices.  This includes using demand curves and schedules to show changes.

Demonstrate understanding would typically involve:

• defining, identifying, describing or providing an explanation of consumer choices related to scarcity
• identifying, describing or providing an explanation of choices a consumer makes in response to a change in price or non-price factors
• identifying, describing or providing an explanation of flow-on effects for the consumer
• clearly illustrating changes using the demand model.

Demonstrate in-depth understanding would typically involve:

• providing a detailed explanation of consumer choices related to scarcity
• providing a detailed explanation, using demand, of choices a consumer makes in response to a change in price or non-price factors
• providing a detailed explanation of the flow-on effects for the consumer.

Demonstrate comprehensive understanding would typically involve:

• providing an integrated explanation of consumer choices related to scarcity
• linking detailed explanations of flow-on effects for the consumer with detailed explanations of choices the consumer makes in response to a change in a price or non-price factors affecting demand
• integrating changes in demand into detailed explanations.