Accessible version | Skip to content | Change your text size

Table of contents

Previous pageNext page

Types of thinking

Click on the highlighted text to see the comments.

Both illicit and legal drugs are often cited as the classic example of goods which are very price inelastic.

Explain why this might be the case.

Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the definition of price inelasticity of demand.

Use the diagram to explain how the inelastic demand has implications for pharmaceutical company price setting and revenue.

Word limit: 750

Look at the task above. From your analysis of the task, how would you explain the type of thinking that is required in studying economics and completing economics assignments such as this? Choose the examples that you think are involved in economics from the list below:

  1. Learning economics principles and retelling them to the examiner/lecturer
  2. Pulling apart an economics principle so that you can explain how it works. That is, the components of it and how the components interact/affect each other to produce the result.
  3. Learning the text book off by heart and rewriting this.
  4. After explaining the components of an economics principle and how it works, explaining to your examiner/lecturer how it relates to a topic that you have been presented with.
  5. All of Style D above, as well as being aware of and explaining to your reader implications, or effects in the future, of the process that you have just explained and applied.

Check your answer

Options A and C are not adequate in the study of economics. It is important that you go much further with the content of your study, as we have explained in Options B, D, and E.

word outputDownload a printable version of this page (.doc)
Problems? Questions? Comments? Please provide us feedback.