ACHIEVEMENT STANDARD 90985

Demonstrate understanding of producer choices using supply

Credits 3

Producer refers to an individual or firm that supplies a good or service.

Producer choices refer to economic decisions a producer makes in response to changes in price and non-price factors affecting supply.

Supply refers to the quantity of a good or service that a producer is willing and able to sell at a range of prices.  This includes using supply curves and schedules to show changes.

Demonstrate understanding would typically involve:

• defining, identifying, describing or providing an explanation of choices a producer makes in response to a change in internal or external factors affecting supply
• identifying, describing or providing an explanation of the flow-on effects for the producer
• clearly illustrating changes using the supply model.

Demonstrate in-depth understanding would typically involve:

• providing a detailed explanation, using supply, of choices a producer makes in response to a change in internal or external factors affecting supply
• providing a detailed explanation of the flow-on effects for the producer.

Demonstrate comprehensive understanding would typically involve:

• linking detailed explanations of the flow-on effects for the producer with detailed explanations of choices a producer makes in response to a change in internal or external factors affecting supply
• integrating changes in supply into detailed explanations.