(a) Identify and explain the main economic factors that affect the demand for a product; the supply of a product and the resulting product price.
(b) Using the economic model developed in (a), analyse the demand, supply and price of water.
Depth of relevant economic content within an answer will determine the overall mark, as will the quality of analysis and evaluation of arguments and examples. Description of cases and examples will result in lower marks.
You are expected to use a range of sources in answering question 1 such as articles from the Financial Times and the Economist.
Sample articles:
A world without water, Pilita Clark, Financial Times, 15 July 2014
Water shortages more pressing than climate change, warns Nestle head, Pilita Clark, Financial Times, 15 July 2014
Troubled waters; the Mekong River crisis, Pilita Clark, Financial Times, 18 July 2014