Hey, really sorry but do you mind listing the determinants of supply for me again .
Also what do we have to know about consumer and producer surplus. Do we have to know what happens to them if the demand/supply curve shifts? Another thing when you draw the consumer or producer surplus do you shade it in or do you label the area.
Last thing if you don't mind is what are the determinants of PED. I think there is like availability of substitutes, luxury or loyalty although I am not entirely sure if that is one, time, addition to definition as well apparently and the proportion of disposable income. Are these the correct ones?
If you want to know if something is on the syllabus or not/what we have to know, then the best thing to do is look at the Specification: if you ask people on here, they may be wrong!
Anyone care to help me with question 2b f581 Jan 09
Draw a PPC with sugar on one axis and ethanol on the other. Then show how some Carribean producers could move along the PPC to produce more of sugar/ethanol and explain how there is an opportunity cost involved in the movement - in order to produce more of one product, they have to produce less of the other. This, in turn, leads to the producers having to make a choice between producing more sugar or producing more ethanol.
Disclaimer: I only had a quick look at the case study/question, do tell me if I've interpreted it wrong!
1)Cost of production 2)Technology 3)Weather (for agriculture/tourisms) 4)Price of other goods, - substitute or competitive supply (avoid this one as it is more complex...)
Consumer/Producer surplus -Definition -Know how to draw the diagram and explain it (2-3marks) -Shade or label is both okay, as long you have show the examiner where the lost or gain in the surplus? But for me, I sometimes label area A and Area B and shade I say something like original consumer surplus is Area A PLUS area B however the new consumer surplus is just A because etc etc expand...and the shaded area is the consumer surplus lost...Might be complicated thus you can stick to just one label/shade
PED determinants (price elasticity of demand) -Disposable income, if you have more then you are more willing and able to spend thus demand rise -Availability of substitute -Availability of complementary goods -Taste/Fashion -Advertising etc etc
YED (income elasticity of demand) Measure the responsiveness of the quantity demanded of a product following a change in income
Values Positive > normal goods, ie when income rise, demand rise Negative > inferior goods, ie when income falls, demand rise e.g. supermarket Tesco chocolates, you avoid buying expensive cadbury ones
Elastic - very responsive thus you demand a greater proportionate of it because you view them as luxury e.g. chocolate cakes
Inelastic - not very responsive but you still demand but a smaller proportionate and these are likely necessity. Just because milk is now 20p doesn't mean you going to buy 10 of them xD maybe u buy 3
(if im wrong pls correct me, i just typed this based on my head)
like what wall said, syllabus is very useful but if it doesnt help you then dont use it, do whatever works best for u
If you want to know if something is on the syllabus or not/what we have to know, then the best thing to do is look at the Specification: if you ask people on here, they may be wrong!
Draw a PPC with sugar on one axis and ethanol on the other. Then show how some Carribean producers could move along the PPC to produce more of sugar/ethanol and explain how there is an opportunity cost involved in the movement - in order to produce more of one product, they have to produce less of the other. This, in turn, leads to the producers having to make a choice between producing more sugar or producing more ethanol.
Disclaimer: I only had a quick look at the case study/question, do tell me if I've interpreted it wrong!
1)Cost of production 2)Technology 3)Weather (for agriculture/tourisms) 4)Price of other goods, - substitute or competitive supply (avoid this one as it is more complex...)
Consumer/Producer surplus -Definition -Know how to draw the diagram and explain it (2-3marks) -Shade or label is both okay, as long you have show the examiner where the lost or gain in the surplus? But for me, I sometimes label area A and Area B and shade I say something like original consumer surplus is Area A PLUS area B however the new consumer surplus is just A because etc etc expand...and the shaded area is the consumer surplus lost...Might be complicated thus you can stick to just one label/shade
PED determinants (price elasticity of demand) -Disposable income, if you have more then you are more willing and able to spend thus demand rise -Availability of substitute -Availability of complementary goods -Taste/Fashion -Advertising etc etc
YED (income elasticity of demand) Measure the responsiveness of the quantity demanded of a product following a change in income
Values Positive > normal goods, ie when income rise, demand rise Negative > inferior goods, ie when income falls, demand rise e.g. supermarket Tesco chocolates, you avoid buying expensive cadbury ones
Elastic - very responsive thus you demand a greater proportionate of it because you view them as luxury e.g. chocolate cakes
Inelastic - not very responsive but you still demand but a smaller proportionate and these are likely necessity. Just because milk is now 20p doesn't mean you going to buy 10 of them xD maybe u buy 3
(if im wrong pls correct me, i just typed this based on my head)
like what wall said, syllabus is very useful but if it doesnt help you then dont use it, do whatever works best for u
I thought the PED determinants were:
We got taught taught in class "SPLAT"
Substitutes - More substitutes there are the more elastic Percentage of disposable income. If it is a higher percentage of income it makes it more elastic. Luxury or loyalty - The greater the brand loyalty the less elastic PED will be. Addition to definition - The more widely defined a product is the fewer substitutes it has. Time- The longer the time period the more elastic the PED is.
Substitutes - More substitutes there are the more elastic Percentage of disposable income. If it is a higher percentage of income it makes it more elastic. Luxury or loyalty - The greater the brand loyalty the less elastic PED will be. Addition to definition - The more widely defined a product is the fewer substitutes it has. Time- The longer the time period the more elastic the PED is.
I think everyone will be doing both, unless they're just retaking this unit, as you need to do both F581 and F582 to get the OCR AS-level Economics qualification.
Then you are referring to PED elasticity not PED determinants(determines the shifts)... I was giving u the determinants of PED not the elasticity Yep Im also doing unit 2.
Do you mean determinants of demand, not determinants of PED, as the latter doesn't make sense?
I think everyone will be doing both, unless they're just retaking this unit, as you need to do both F581 and F582 to get the OCR AS-level Economics qualification.
Do you mean determinants of demand, not determinants of PED, as the latter doesn't make sense?
Yes for demand lmao I am so sorry xD Dont ask me any more questions *hides*
I think everyone will be doing both, unless they're just retaking this unit, as you need to do both F581 and F582 to get the OCR AS-level Economics qualification.
Do you mean determinants of demand, not determinants of PED, as the latter doesn't make sense?
For the 18 marker how have you been taught to lay it out. Is it true you have to get L3 to get L4. Also do you have any good 18 mark exemplar answers. I don't think I have seen one yet. Thanks.
For the 18 marker how have you been taught to lay it out. Is it true you have to get L3 to get L4. Also do you have any good 18 mark exemplar answers. I don't think I have seen one yet. Thanks.
Can someone explain PES determinants to me. Thanks
So I'm sure you already know what it is, the responsiveness of quantity supplied due to a change in price. There are 3 main factors: Stock, factors of production and time.
1) Stock of the product: If there's a high stock of a product, and the price of the product increases the supplier can easily change supply (by releasing the stock they have) - elastic PES.
2) Availability of factors of production: If there is a high availability of factors of production, ie lots of spare capacity, suppliers can alter these factors of production relatively easily if there is a change in price. E.g. if the price of rice shoots out of the sky, how quickly can rice farmers increase their supply due to this change in price (relatively slowly in this case).
3) Time period: In the LR PES is generally elastic as supply can be altered due to a change in price, however in the SR it's not as easy to change supply due to a change in price (links in well with the availability of factors of production).