F581/ F582 Economics June 2013

Original post by Akak

Hmmm I did that at first then at the last minute I looked in the extract and it didn't say anything about demand factors? It just said that demand fell due to the increase in price which I thought was a contraction in demand. That confused me too when they said "demand and supply". Really confused

They emphasised the "AND" for a reason. Maybe there was a shift in both curves, but it did say in the case study that demand fell in general, not just due to a rise in the price.

Reply 884

Akak

Could someone listen the questions and marks allocated to each question please, I'm trying to calculate roughly how many marks I got

Reply 885

OP

Original post by Economist21

They emphasised the "AND" for a reason. Maybe there was a shift in both curves, but it did say in the case study that demand fell in general, not just due to a rise in the price.

yep this was exactly my reasoning for shifting both lines :smile:

Reply 886

Akak

Do you reckon I will lose all my marks for that question then?

Reply 887

Original post by Fas

yeah mentioning positives was an added bonus , but the question mainly revolved around the negative externalities ( why would you use regulations to reduce the positive externalities , doesn't make sense )

The essay didn't have to link back to the case study did it ?

No it doesn't have to link back to the case study. In the June 2009 paper the case study included air transport and the question was 'Discuss whether taxation is the most effective solution to the market failure arising from negative externalities. The mark scheme included this:

This question requires a discussion of the merits of taxation as a means of dealing with the market failures that arise when there are negative externalities.The use of 'most effective' in the question implies that other means are available and should be discussed. No specific context is given in the question, although clearly some application to air transport is relevant.

Reply 888

christanmu

9

What a peach of an exam The National Economy was! I had literally prepared that essay a couple of hours before :biggrin:

Although I'm kinda' annoyed with myself - I got the allocative efficiency definition mixed up so will have only got 1/2, and then didn't get too much l4 in the essay as I'd wrote so much for everything else that I ran out of time :frown:

Managed to get onto the second extra page! I need to sort my life out and learn to condense :tongue:

What a peach of an exam The National Economy was! I had literally prepared that essay a couple of hours before :biggrin:

Although I'm kinda' annoyed with myself - I got the allocative efficiency definition mixed up so will have only got 1/2, and then didn't get too much l4 in the essay as I'd wrote so much for everything else that I ran out of time :frown:

Managed to get onto the second extra page! I need to sort my life out and learn to condense :tongue:

Also to people worrying about negative externalities - it wasn't a problem if you didn't go into depth about them if you used demerit goods!

(edited 10 years ago)

Reply 889

Original post by Economist21

They emphasised the "AND" for a reason. Maybe there was a shift in both curves, but it did say in the case study that demand fell in general, not just due to a rise in the price.

In the case study in the first paragraph it said: 'oil prices or something has increased and this as caused a fall in the supply of airlines resulting in a rise in price which has decreased demand'

So technically the 'decrease in demand' followed on from 'because of a fall in price'

Although above figure 1 it stated that income of UK citizens fell by 10% so it's a bit of a tricky question in how they will give the marks for this as I assume quite a lot of students got mixed up.

Reply 890

OP

Original post by Akak

Do you reckon I will lose all my marks for that question then?

nope - you'll lose one mark for not shifting the demand line , but that should be it tbh unless your comments are messed up lol

Reply 891

What was the YED for foreign markets?

Reply 892

Original post by Akak

Do you reckon I will lose all my marks for that question then?

2 marks if we're wrong by not shifting the demand curve. I'm pretty sure we're not though because the case study did specifically state demand decreased because of a rise in prices.

Reply 893

Original post by Kenny Loftun

In the case study in the first paragraph it said: 'oil prices or something has increased and this as caused a fall in the supply of airlines resulting in a rise in price which has decreased demand'

So technically the 'decrease in demand' followed on from 'because of a fall in price'

Although above figure 1 it stated that income of UK citizens fell by 10% so it's a bit of a tricky question in how they will give the marks for this as I assume quite a lot of students got mixed up.

Demand must've fallen due to higher prices of oil? Not only firms use oil but also consumers therefore income would fall wouldn't it?

Reply 894

OP

Original post by Kenny Loftun

In the case study in the first paragraph it said: 'oil prices or something has increased and this as caused a fall in the supply of airlines resulting in a rise in price which has decreased demand'

So technically the 'decrease in demand' followed on from 'because of a fall in price'

Although above figure 1 it stated that income of UK citizens fell by 10% so it's a bit of a tricky question in how they will give the marks for this as I assume quite a lot of students got mixed up.

they would be really really dickish if one was right and the other was wrong and they decided to drop all the marks for the question for the people that got it wrong ! that said it would reduce grade boundaries loads haha

i honestly think they will accept both aslong as youve reasoned it well in your explanation :smile:

Reply 895

Original post by Economist21

Demand must've fallen due to higher prices of oil? Not only firms use oil but also consumers therefore income would fall wouldn't it?

I'm just stating what the case study said in the first paragraph. It said supply fell due to increases in the price of oil and tightening regulations which has led to an increase in the price causing a decrease in demand.

Reply 896

OP

To be honest , the case study did mention that demand fell due to an increase in price - but it also mentioned that demand fell due to a fall in consumer incomes and that it fell altogether. It's really upto OCR , there's no way any of us can be definite for sure that what they have put is right :tongue:

Reply 897

Original post by Kenny Loftun

I'm just stating what the case study said in the first paragraph. It said supply fell due to increases in the price of oil and tightening regulations which has led to an increase in the price causing a decrease in demand.

So income didn't fall due to higher fuel prices? I'm sure it has a knock on effect which will lower consumer income.

Reply 898