information and knowledge(a) Using demand and supply fundamentals, explain why prices in school holidays are often higher than in school terms. (20) (b) How do tour operators take account of risks (such as e.g. exchange rate changes) in pricing their holidays?The two hour examination will be scheduled for the May exam period which starts at the end of April 2015. The exam will use data response questions in various formats (e.g. a problem sets to case study material drawn from typical news items). Students will be allowed to take two sides of A4 notes into the examination room with them. The questions will cover the four themes of the syllabus. Examples of previous exam papers can be found on the library web pages. Discussion questions used in the workshops provide a useful source of revision material for the exam. 1. Coursework: component B This section sets out the essay question, the marks scheme, and submission details. You are required to write a 1,500 word essay on the following question. What economic factors do tour operators take into account in setting the price of their package holidays? (60) (a) Using demand and supply fundamentals, explain why prices in school holidays are often higher than in school terms. (20) (b) How do tour operators take account of risks (such as e.g. exchange rate changes) in pricing their holidays? (20) You may find it helpful to read the ABTA publication before starting: http://abta.com/resource-zone/publication/the-consumer-holiday-trends-report-2014 1.1 Purpose of this assignment Essays are intended to provide students with practice in writing. Essays require that students assimilate information and knowledge acquired from lecture presentations and discussions as well as the recommended texts and any additional information identified by students themselves. Essays should answer the question set, be well structured and conform to the word limit. Essays should not simply be reproductions of text material and should not be products of joint work by students. All direct quotations should be indicated clearly in the text and fully attributed to the source as included in a full list of references at the end (ordered alphabetically). References should be limited to those only used by the students. 1.2 Assessment Essay marks (out of 100%) will be awarded for presentation, structure, grammatical style and spelling as well as content. This is a question that requires you to use economic tools (such as demand and supply analysis) and you should, where possible, support your arguments with data and other evidence (and include appropriate references (see section 8 below)