[bong]

(Original post by uxa595)
Same here. For the first one, i put Japan was an elastic market but i forgot to put the US was inelastic. It specifically said compare so im assuming i didn't even get 1 mark for saying Japan was elastic.
However, i did put in the first 4 mark Q that japan was a normal good and in the US it was neither, so i can only hope....
If that works out, i have the potential of 59/60 or even 60 in that paper.

What value of YED would be sufficient to classify it as a luxury good? I thought 2 was rather elastic so I made a reference to this - eg in Japan there would generally be less demand for fast food. A bit like this (less steep curve)

[uxa595]

(Original post by bong)
What value of YED would be sufficient to classify it as a luxury good? I thought 2 was rather elastic so I made a reference to this - eg in Japan there would generally be less demand for fast food. A bit like this (less steep curve)

At ocr AS, you only have to refer to inferior and normal.
I've always just thought of a luxury as a elastic good that is not a necessity.

See, even from the diagram, 0 seems neither a necessity nor a luxury.

[shaggyk]

lool business relevance of PES came up, so glad i revised that !

[uxa595]

It was cruel of them to put in 0.
I guess i was right that 0 classifies as none as over 0 = normal, under 0 = inferior but 0 = none.

[whitehousea]

(Original post by Pride)
the 8 mark one. you mean the demand and supply diagrams for McDonalds and BK?
yeah I basically did a rightward shift in demand for mcdonalds because of the advertising. Then a leftward shift in demand for burger king, showed excess supply and I think it was expansion along the demand curve? don't remember tbh.

umm income elasticity. Yeah I was talking about how firms'd want a normal good in a boom, and generally, and over time with trend growth. Recession, wanting an inferior good. Talking about how firms'd switch resources or rebrand.

Yeah I did exactly the same for both questions as you then.
Phew, I thought i'd totally missed the point with the YED question.

[SL25]

(Original post by bong)
What value of YED would be sufficient to classify it as a luxury good? I thought 2 was rather elastic so I made a reference to this - eg in Japan there would generally be less demand for fast food. A bit like this (less steep curve)

I didn't think it was a case of either a luxury or inferior good. What I talked about and what most people in my school wrote was about how Japan need to price their fast food products more carefully in comparison to the US where price is very inelastic. The elasticity figure for US was 0, therefore indicating NO proportional change in demand to a change in income. Whereas Japan had an elasticity figure of 2.0, indicating that changes in income will have considerable proportional change to demand...I'm not sure if this is right now

[SL25]

(Original post by shaggyk)
lool business relevance of PES came up, so glad i revised that !

It was business relevance to YED ...

[SL25]

(Original post by bong)
Doesn't 0 income elasticity of demand mean that its so inelastic, it behaves like a necessity? Because necessities have 0 YED - quantity demanded does not change regardless of income - represented by a vertical line on a Income/
Q.D graph.

I wrote that, would it be correct?

Edit: Also, as YED is almost analogous to PED, this explains why in the USA is will be so difficult to reduce the sale of fast-food.

I thought 0 inelasticity would indicate NO proportional change in demand to a change in income.

[SL25]

Is it possible to talk about tradable permits in the essay. The way I introduced this point is by saying that tradable permits would limit manufacturing of fast-food products as capital is required to produce these goods. Then I drew-up a diagram showing how a fall in supply would force firms to raise prices, which would help reduce the market failure arising from fast-food products. As an evaluative point, I said this method is not completely effective as there are many ways firms can counter this policy, e.g. buying small-sized firms and using their tradable permits for manufacturing. I talked about information provision aswell and evaluated on that. However what I'm worried about is that I won't get marks for these points as the essay may only require information about the regulations themselves. Because the word "alone" was highlighted in bold.

[JanembaJanemba]

(Original post by SL25)
Is it possible to talk about tradable permits in the essay.

This is exactly what I did, really hope we're right. I don't see why it'd be wrong, it is a regulation and it does correct Market Failiure by covering social costs.
Fingers crossed XD

[uxa595]

(Original post by JanembaJanemba)
This is exactly what I did, really hope we're right. I don't see why it'd be wrong, it is a regulation and it does correct Market Failiure by covering social costs.
Fingers crossed XD

Trade permits? for fast food? how?

[JanembaJanemba]

(Original post by uxa595)
Trade permits? for fast food? how?

Tradable pollution permits put a limit on the amount of emissions a company can produce when making a good right?
So restricting to amount of emissions McDonald's can produce (1800 tonnes of co2 per year, threw that in for pitty marks XD) when making their food, will restrict the amount they can supply, shifting S left to S1, covering social costs correcting Market Failiure.

Obviously that isn't my entire essay, just that one point.

Am I talking outta my ass here? Because after writing that, my confidence flew out the window >_>

[uxa595]

(Original post by JanembaJanemba)
Tradable pollution permits put a limit on the amount of emissions a company can produce when making a good right?
So restricting to amount of emissions McDonald's can produce (1800 tonnes of co2 per year, threw that in for pitty marks XD) when making their food, will restrict the amount they can supply, shifting S left to S1, covering social costs correcting Market Failiure.

Obviously that isn't my entire essay, just that one point.

Am I talking outta my ass here? Because after writing that, my confidence flew out the window >_>

If it was just one point, don't worry, you can still get a very high mark out of 18 as OCR never mark you done for something you did wrong.

Trade permits always seem to apply to firms with lots of emissions such as car, steel and gas companies.
I hardly think a maccies emits enough CO2 to make it viable to regulation.

[t00 g00d for u]

(Original post by JanembaJanemba)
Tradable pollution permits put a limit on the amount of emissions a company can produce when making a good right?
So restricting to amount of emissions McDonald's can produce (1800 tonnes of co2 per year, threw that in for pitty marks XD) when making their food, will restrict the amount they can supply, shifting S left to S1, covering social costs correcting Market Failiure.

Obviously that isn't my entire essay, just that one point.

Am I talking outta my ass here? Because after writing that, my confidence flew out the window >_>

Tbh, they assume with these questions that you have little knowledge about the firms involved. For all they know you could think that emissions from potato frying is a big contributor to c02 emissions, and as long as you spell everything out and make your case I'm sure you'll get the marks. As you have specified you have knowledge about how regulation works etc

[SL25]

(Original post by uxa595)
If it was just one point, don't worry, you can still get a very high mark out of 18 as OCR never mark you done for something you did wrong.

Trade permits always seem to apply to firms with lots of emissions such as car, steel and gas companies.
I hardly think a maccies emits enough CO2 to make it viable to regulation.

i actually think that it is a legitimate point as long as you explain the point. its probably not a conventional point to make but the OCR mark schemes always have a "others" section. The main thing im worried about is that the question talked about regulations 'alone' being effective. So alternatives may not be necessary. If this is the case 2/6 pages i wrote about were regulations....lol

[Notsureabout123]

How many marks can you lose by just talking about regulation as opposed to comparing it to taxation etc... everyone I talked to at college said they'd compared it, now I'm worried I've really messed it up :/ x

[mimx]

(Original post by uxa595)
Trade permits? for fast food? how?

Tradable Fat Permits?

I actually thought about making an amusing aside about that in my essay.

[Pride]

(Original post by mimx)
Tradable Fat Permits?

I actually thought about making an amusing aside about that in my essay.

I think what they probably meant was 'you're only allowed to make this many burgers'. Then it'd be set at the 'socially optimum level' that way.

[Mad-dawgz]

This question is about the yed calculation. If the question Asked for the figure for 2009, however said that there was no change in demand in 2008 but there was a slight change in 2009. This surly shows that the yed is perfectly inelastic in 2008 and highly inelastic in 2009 due to the slight change. Therefore the answer cannot be 0?

[SL25]

(Original post by Mad-dawgz)
This question is about the yed calculation. If the question Asked for the figure for 2009, however said that there was no change in demand in 2008 but there was a slight change in 2009. This surly shows that the yed is perfectly inelastic in 2008 and highly inelastic in 2009 due to the slight change. Therefore the answer cannot be 0?

The answer was definitely 0. I forgot the figures but the majority in my school and many others including this forum had the same answer. In the explanation, you had to note that there is no responsiveness to demand to a change in income of US consumers, because there is no change in the YED elasticity.