Edexcel economics unit 1 and 2 retakes

Technological improvement Lowers cost of production for instant coffee firms, increases producer surplus

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 = 150000-120000 = -3000

What did everyone put for the buffer stock question?

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.

agency sell stock from its stockpile

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

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 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.

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.

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.

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.

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

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 shifted the demand curve for some reason

It could actually be A. I put B but if demand for tea goes up. Demand for cofee will go down causing a lower price causing lower producer surplus. Thats quite complicated though. B seemed obvious.