Up: Economics Network > Writing for Economics
Marker's comments
Student 1
The response to the first question is very clear. Note that the student answers the question directly and immediately and then adds detail / further ideas. However, the answer to the second question works less well. The idea is there, but the order is somewhat jumbled and compared to student 2, this student's answer is confused and suggests a lack of clarity on the economics - something the tutor's comments refer to. This student's mark of 53% for the whole exercise reflected this.
Tutor's comments
Write a summary based on the excerpts from textbooks that identifies the key idea
An inferior good is a good for which an increase in income results in a reduction of its consumption i.e. an inferior good has a negative income elasticity. The determination of a good as inferior depends on the income level we examine.
Clear, correct and concise
Give an example of a good that is likely to be inferior in the country that you come from. Explain why you think this good is likely to be inferior.
Baked beans are an example of an inferior good in the UK. As income increases a UK consumer buys less baked beans; the new budget enables the consumer to buy more luxurious goods e.g. organic runner beans, instead. As income decreases, a consumer buys more baked beans because they are more affordable than organic vegetables. The income and substitution effects for this good work in opposite directions; if the price of baked beans increases, price elasticity of demand is negative (we substitute baked beans for other goods) and income elasticity of demand is negative (we buy more baked beans).
The everyday concept of affordability does not translate easily into the economists' model of consumer theory, as often the consumer could purchase the good so it is obtainable, but chooses not to given the level of its price.
The point on income and substitution effects is correct, but is not relevant to the question asked so should not be included.
Student 2
This is an example of good writing. This student received a mark of 86% for the task from which these responses were taken and this was the result of the clarity and apparent simplicity of the responses. If you look though, all the student has done is answer the question directly and immediately and then justify and support this answer. Simple and effective.
Tutor's comments
Write a summary based on the excerpts from textbooks that identifies the key idea
1.) An inferior good is a good with a negative income elasticity of demand. This means that as income rises, the quantity of that good demanded falls.
Give an example of a good that is likely to be inferior in the country that you come from. Explain why you think this good is likely to be inferior.
2.) Baked beans are likely to be an inferior good in the UK. This is because they are very cheap and when people's incomes are low they are likely to consume it as the main part of a meal (e.g. beans on toast). As people's incomes rise however, they are likely to either consume it as a side dish or replace it with fresh vegetables and therefore reduce their consumption of it.
A - very clear and correct