What you need to know

Definitions Law of diminishing returns Momentary Time period Short Run time period Long Run time period Inelastic supply Elastic supply

Achieved Provide an explanation of diminishing returns and supply and apply it to a specific market Define law of diminishing returns using an example Explain what happens to a firms supply when price increases Demonstrate an understanding of elasticity of supply Show an increase in demand on Momentary Short Run and long run, prices and quantities Distinguish between different elasticity's over different time periods

Merit Linking law of diminishing returns with why the producers are only willing to supply more when prices rise Provide detailed explanations of elasticity of supply supported by supply and demand model Explain how elasticity is influenced by time

Excellence Integrate supporting information (news article) into explanations of diminishing returns and supply and use these to justify effects on producers Link detailed explanations of elasticity of supply, supported with information with use of model to justify impact on producers