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Title / Analyse economic events using the demand and supply model
Level / 5 / Credits / 2
Purpose / People credited with this unit standard are able to demonstrate understanding of, and analyse economic events by means of, the demand and supply model.
Classification / Economic Theory and Practice > Micro Economics
Available grade / Achieved
Explanatory notes
1Definition
Demand and supply model is a graphical demonstration, supported by a narrative giving reasons for shifts in demand or supply curves and consequential adjustments to price and output levels.
2References
Callander, Andrew, Understanding the Economic Environment, 2nd (or subsequent) ed. (Wellington: Lexis Nexis, 2004).
Stewart, James, Rankin, Keith, Economic Concepts and Applications: The Contemporary New Zealand Environment, 4th (or subsequent) ed. (Auckland: Pearson, 2008).
Outcomes and evidence requirements
Outcome 1
Demonstrate understanding of the demand and supply model.
Evidence requirements
1.1The derivation of the demand curve is explained in terms of quantity demanded at different price levels.
Rangedemand – individual, market.
1.2The derivation of the supply curve is explained in terms of quantity supplied at different price levels.
1.3The equilibrium level of quantity traded and a price consistent with the demand and supply model is established.
1.4The causes of shifts in the demand curve are described in terms of the model.
1.5The causes of shifts in the supply curve are described in terms of the model.
1.6Shifts in equilibrium resulting from performance criteria 1.4 and 1.5 are illustrated in terms of their impact on the price and quantity traded.
1.7The stability of equilibrium is explained and illustrated in terms of the operation of the automatic mechanism which exists at disequilibrium.
Outcome 2
Analyse economic events by means of the demand and supply model.
Evidence requirements
2.1The analysis illustrates and explains the impact of the economic event by means of shifts in demand and supply curves, and establishes the consequences for equilibrium price and output levels.
2.2The analysis predicts the impact of the economic event upon consumers and producers in terms of the demand and supply model.
Replacement information / This unit standard and unit standard 26011 replaced unit standard 8410.Planned review date / 31 December 2019
Status information and last date for assessment for superseded versions
Process / Version / Date / Last Date for AssessmentRegistration / 1 / 16 October 2009 / 31 December 2016
Rollover and Revision / 2 / 16 April 2015 / N/A
Consent and Moderation Requirements (CMR) reference / 0116
This CMR can be accessed at
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Providers and Industry Training Organisations, which have been granted consent and which are assessing against unit standards must engage with the moderation system that applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies to this standard are outlined in the Consent and Moderation Requirements (CMR). The CMR also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements.
Comments on this unit standard
Please contact NZQA National Qualifications Services if you wish to suggest changes to the content of this unit standard.
NZQA National Qualifications ServicesSSB Code 130301 / New Zealand Qualifications Authority 2018