Edexcel A Level Economics A Paper 3 (9ECO 03) - 5th June 2023 [Exam Chat]

can you mention price wars as a pricing strategy

Well the question literally doesn't specify what type of firm, could be small or large, I think it just wanted any price strat.

Alright, how many marks would I get for suggesting that high street retailers move their storefront partially online to facilitate lower unit labour costs (automating sales and shipping) and having an outsourced storage capable of storing more unique specialised products? (Price competition for the 12 marker in section B)

Did the 12 marker in question B say pricing or non pricing strategies or pricing and non pricing strategies?

is there an unofficial mark scheme

yeh its on this chat somewhere above

I have searched and still cant find it lol, does anyone have the link

im not sure because it wanted a non-price Strat and a price Strat so u have non-price, but what abt the price?

For the 25 marker on falling house prices, I talked about how falling consumer confidence will lead to a decline in demand for goods and services in general which may lead to a decrease in both AR and MR for firms as consumers are more likely to save. Does the point make sense or did I just write something that's outrageously wrong haha

It does make sense (basically you described the negative wealth effect without saying it). I, for one, said there'd be an increase in consumer demand due to lower house prices which technically makes less sense since the fall in house prices is due to falling demand lol. The real question is - why you stressing about Econ 3 like 5 days after it finished?

I was revising for my other exams and my brain decided to supply images of my economics exam paper and refused to shut up until I made sure what I wrote was right and not something that would make my marker question what I've learnt for the past two years haha

Eh second 25 marker on paper 3 was weak for me too, but I think economics is one of those subjects that fairly assesses you across the papers. As long as you've performed consistently, you should be gucci. Good luck for any other papers you have, economics is behind you!

In the 12 mark question about impact of increasing gas prices on firms that use gas in production process, do you think we would also be credited for saying that an increase in gas prices would lead to a rise in fixed rather than variable costs (shift in AC only rather than in AC and MC), and fall in profitability as a consequence? Because some of my classmates said that utilities and gas are variable costs, while myself and a couple of others said that they are fixed. Do you think that both could be considered as right answers, because both would have the same impact - fall in profitability (SNP)?

In the 12 mark question about impact of increasing gas prices on firms that use gas in production process, do you think we would also be credited for saying that an increase in gas prices would lead to a rise in fixed rather than variable costs (shift in AC only rather than in AC and MC), and fall in profitability as a consequence? Because some of my classmates said that utilities and gas are variable costs, while myself and a couple of others said that they are fixed. Do you think that both could be considered as right answers, because both would have the same impact - fall in profitability (SNP)?