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# Edexcel economics unit 1 and 2 retakes

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1. (Original post by ACTT)
Quantity was 200 at £600
Quantity was 300 at £500
My bad! I put down the PED formula though and edited the elasticities so hopefully only 2 marks were lost
2. (Original post by amg96)
Yes, after the initial price rise - I think we're meant to calculate the initial PED value.
But I thought the elasticity varied along the curve so the top of the demand curve is elastic, the middle is unit elasticity and the bottom end is inelastic so a rise in price would make it price elastic, causing a decrease in revenue. I didn't do any calculations though :/
3. (Original post by ACTT)
Technological improvement Lowers cost of production for instant coffee firms, increases producer surplus
Exactly what I put and then I went on to show an increase in producer surplus via a diagram.
4. the values for ped was -1.67
5. (Original post by A-LevelEconomist)
But revenue increased from £100,000 to 180,000.

Originally at the price or £500, 200 was quantity demanded =£100,000

The new price of £600, 300 was the quantity demanded, =180,000
200 * 600 = 120000
300 * 500 = 150000

New revenue = 120000-150000 = -3000
6. (Original post by epic within)
200 * 600 = 120000
300 * 500 = 150000

New revenue = 150000-120000 = -3000
Yes so 30,000 was lost. It makes sense now.. I was rushing and read he bloody demand figures wrong.
7. What did everyone put for the buffer stock question?
8. What did everyone put for the market of steel. I got confused and said it would increase as more firms will join the market as iron ore prices have fallen so this means people who produce steel can buy it for a cheaper price and increase profits. I drew a supply curve shifting to the right as more firms join the market and produce steel. However i think i am wrong.
9. (Original post by A-LevelEconomist)
What did everyone put for the buffer stock question?
agency sell stock from its stockpile
10. (Original post by Hasan1996k)
What did everyone put for the market of steel. I got confused and said it would increase as more firms will join the market as iron ore prices have fallen so this means people who produce steel can buy it for a cheaper price and increase profits. I drew a supply curve shifting to the right as more firms join the market and produce steel. However i think i am wrong.
As iron ore is a raw material to produce steel if the price of iron ore went down (which it did) then the costs of producing steel would fall. This increases supply of steel.
11. (Original post by epic within)
agency sell stock from its stockpile
Yea because 2016 was a bad harvest.
12. (Original post by Hasan1996k)
What did everyone put for the market of steel. I got confused and said it would increase as more firms will join the market as iron ore prices have fallen so this means people who produce steel can buy it for a cheaper price and increase profits. I drew a supply curve shifting to the right as more firms join the market and produce steel. However i think i am wrong.
oi hasan what you saying
13. (Original post by polop)
oi hasan what you saying
I think if hassan drew the supply curve increasing then he would get the 4 marks for the diagram. But I'm confused about the other things he has mentioned.
14. (Original post by emilia_claire)
From what I can remember, I think it said a successful advertising campaign for tea so it would cause a decrease in demand for coffee. I think I put the increase in technology for coffee production as from the diagram I drew, the surplus did look a bit bigger but it could be wrong.
I put the technology one also.
15. (Original post by A-LevelEconomist)
I think if hassan drew the supply curve increasing then he would get the 4 marks for the diagram. But I'm confused about the other things he has mentioned.
I shifted the demand curve for some reason
16. (Original post by amg96)
Guys, I put down A because of the successful advertising campaign.

Look at the image - an increase in supply is plausible, but the producer surplus remained the same.

Attachment 532517
That was about tea though not coffee...
17. (Original post by amg96)
Guys, I put down A because of the successful advertising campaign.

Look at the image - an increase in supply is plausible, but the producer surplus remained the same.

Attachment 532517

That is wrong. The advertising was about tea. Question is about Cofee.
18. (Original post by amg96)
Guys, I put down A because of the successful advertising campaign.

Look at the image - an increase in supply is plausible, but the producer surplus remained the same.

Attachment 532517
but a successful advertising campaign is going to increase demand for tea and reduce demand for coffee because they are substitute goods and so that would reduce producer surplus
19. (Original post by epic within)
but a successful advertising campaign is going to increase demand for tea and reduce demand for coffee because they are substitute goods and so that would reduce producer surplus
Wasn't the Q about what will increase producer surplus?
20. (Original post by Hasan1996k)
What did everyone put for the market of steel. I got confused and said it would increase as more firms will join the market as iron ore prices have fallen so this means people who produce steel can buy it for a cheaper price and increase profits. I drew a supply curve shifting to the right as more firms join the market and produce steel. However i think i am wrong.
I remember putting something to do with increase firms but not sure (due to the incentive)

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