Prep and reflection – Week 3

Reflection work

1. Complete PPF Worksheet

2. You have been commissioned by Mintel a leading market research firm to complete a document on changing
demand in the UK economy

Determinants of demand research document

What is driving demand in the UK? For each determinant of demand, find evidence to find out what is
increasing/decreasing or otherwise changing.

Income

o The UK is currently facing a period of severe uncertainty. During the pandemic some people have faced
severe cuts in their disposable income, whilst other have found their income increasing
o Can you find evidence of goods and services, which may support the theory regarding normal and inferior
goods?

Examples – How to write in the report – explanation paragraph and then show the sources you have used

During the past year the UK has faced severe uncertainty in the economy this has led to some people's income rising
and others falling. An example of a good where demand has increased is houses and garden furniture. These could be
examples of normal goods whereas income rises demand for a good rises.

Source
BBC News: https://www.bbc.co.uk/news/business-58372882

Price of substitutes

o Businesses constantly have to consider what price they should sell their good or service at.
o Can you find examples of businesses that have recently changed their prices and how this may impact their
competitors?

Price of complementary goods

o How may have technological change affected demand for goods?

o Mobile phones have become more affordable across the world; as price falls have demand for
complementary goods has risen?
o Can you give any other recent examples of how changes in prices of complementary goods has affected
demand?

Preferences and tastes

o What are the recent trends in your friendship group? Are there certain brands of clothing that more people
are buying?

Demographics

o London is one of the most diverse cities in the world. Can you give examples of how the
demographics of your area have affected the types of goods and services available? Have you
noticed any changes in the types of shops?
Prep work Week 3 – Supply and demand shifts & Equilibrium

1. https://www.youtube.com/watch?v=sKCOvstA9c0 (How equilibrium price is formed)

2. Y1/IB 6) Microeconomic Equilibrium Shifts

Make notes about the video above – ½ a page, include key terms, diagrams and concepts.