Diagrams and Analysis

Three marks on the diagram. Three marks on the analysis. Both require the same care.

Start here: drawing and writing

Now that you've planned your big ideas, it's time to draw your diagrams and write the analysis paragraphs that go with them. Here's how to think about both:

Your two diagrams

It's almost always best to have two diagrams. Not one, not three. If you think there's only one relevant diagram, you need to be sure because your mark will be pulled down if there was another one you could have drawn. Your diagrams should tell a story together, and may be something like:

You need two diagrams, and they should tell a story together:

• Diagram 1: the starting position. Show what the market looks like before any intervention. For many micro topics this means showing the market failure: for example, a deadweight loss (DWL) triangle that shows the gap between the market outcome and the socially optimal one.
• Diagram 2: the policy. Show what happens after the policy is applied: the tax, subsidy, price control, or whatever your article describes. Show the shift, the new equilibrium, and what's changed.

Both diagrams should include any real numbers from your article. If the article says a 20% tax is proposed, that goes on the diagram. If it mentions a specific price or quantity, use it. Non-generic labelling is one of the first things the examiner checks.

Your analysis paragraphs

Each diagram gets an explanatory paragraph. Good analysis does all of the following:

• Describes what happens: what shifts, which direction, what the new equilibrium is.
• Refers to labels on the diagram: "the shift from D₁ to D₂ increases price from P₁ to P₂". If you drew it, reference it.
• Explains why the change happens: the mechanism, not just the result. What caused the curve to shift? What's the economic logic?
• Defines terms: weave in your economic vocabulary naturally. Don't dump definitions in a list; integrate them.
• Refers to the stimulus: anchor your analysis in the article. Paraphrase specific facts, data, or quotes. Don't copy chunks of text: refer and apply.
• Weaves in the key concept: don't worry too much about this right now; the next section focuses on it. But keep it in mind as you write.

Checklist: diagrams and writing

Use this after you've drawn your diagrams and written your analysis paragraphs. Tick off each point: your progress is saved. Download a copy to share with Sam.