2016 Edexcel Economics A: Paper 1 Intro To Markets And Market Failure (May 16th)

Original post by AsmaaMahamud97

I thought we were considering its XED.

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Since when was it XED? I remember it only talking about the Help-to-buy scheme

Reply 181

rosemondtan

10

Original post by Chris141

You were supposed to say the effects of the Help to buy scheme on the market for rented accomodation.

I said deman for rented houses will decrease because now more people are able to BUY houses. Therefore, people renting out their houses may be forced to lower their rents to attract consumers and therefore receive less rent payments or simply choose not to rent their houses.

However, some lower income people may still be unable to afford the mortgage even after the prices are lowered. Therefore, they may still choose to rent. Also, people who come to the uk on work permits may still choose to rent as it is economically not feasible to buy a house for the duration of your work permit. Also, it depends on the magnitude of subsidies to the mortgage.

Reply 182

JMEisjames

2

Original post by AsmaaMahamud97

I thought we were considering its XED.

Posted from TSR Mobile

Yh i did this in the first paragraph stating that demand for renting decreases in short term, then next i talked about demadn for renting increases once the subsidy is no longer in effect

Reply 183

zahanara

6

Original post by AsmaaMahamud97

I thought we were considering its XED.

Posted from TSR Mobile

yeah but doesnt XED talk about quantity demanded of one good in relation to price of another? and it that question we were look at demand for both

Reply 184

Original post by Dnkz7

Since when was it XED? I remember it only talking about the Help-to-buy scheme

Effect of the helptobuy scheme on the market for rented property. They are in competitive demand etc.
That kinda thing.

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Reply 185

Original post by zahanara

yeah but doesnt XED talk about quantity demanded of one good in relation to price of another? and it that question we were look at demand for both

If demand shifts outwards price increases.

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Reply 186

Original post by zahanara

that makes so much sense omg i literally forgot everything at that point. You seem like one of those people who came out of the exam still breathing lol. How did you find it?

It was still a **** exam tbh lol

Reply 187

Middleton1998

For the price mechanism surely it's just a reference to supply and demand (what the price mechanism actually is) and so you just have to evaluate good and bad of it. Good, for example: efficieny and what consumers wants. Bad: inequality, can cause government intervention and therefore failure??????????

Reply 188

Original post by JMEisjames

Yh i did this in the first paragraph stating that demand for renting decreases in short term, then next i talked about demadn for renting increases once the subsidy is no longer in effect

I did- market will diminish because: price drops- people will choose to use the helptobuy instead
Evaluated with I forgot.. Something.
And I wrote that it would diminish because the extract said people would switch.
I forgot the evaluation here as well.
Am I the only one who thought it was a purely XED question like on the past papers?

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Reply 189

xJaayyy

13

For the 10 marker I said the scheme acts as a subsidy (drew it on the graph) in order to incentivise producers from lowering mortgage prices which increases demand for mortgages within consumers. For the 20 marker I also used the example of a subsidy in order to fix the postivie externality of an under production in housing can produce. That was a real s*** exam. I personally started revising in March confident in all the topics etc. And found that extremely hard due to the vauge wording of the exam! Hopefully macro is in our favour.

Reply 190

bulletman54

5

what question f again?

Reply 191

Original post by AsmaaMahamud97

Effect of the helptobuy scheme on the market for rented property. They are in competitive demand etc.
That kinda thing.

Posted from TSR Mobile

nah i dont buy that - if that were the case it would be compared with another programme. It only said discuss the effect of the help-to-buy scheme for rented property.

Reply 192

Original post by Middleton1998

For the price mechanism surely it's just a reference to supply and demand (what the price mechanism actually is) and so you just have to evaluate good and bad of it. Good, for example: efficieny and what consumers wants. Bad: inequality, can cause government intervention and therefor failure??????????

I thought we just explained functions and applied to the market. Then evaluated with the extract (low PES- means signalling can't be fulfilled, etc.)

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Reply 193

Original post by xJaayyy

For the 10 marker I said the scheme acts as a subsidy (drew it on the graph) in order to incentivise producers from lowering mortgage prices which increases demand for mortgages within consumers. For the 20 marker I also used the example of a subsidy in order to fix the postivie externality of an under production in housing can produce. That was a real s*** exam. I personally started revising in March confident in all the topics etc. And found that extremely hard due to the vauge wording of the exam! Hopefully macro is in our favour.

In the exact position as you bro, macro will be our hero at the end of the day

Reply 194

bulletman54

5

wasnt the PES negative ?

Reply 195

xJaayyy

13

I actually found the 15 marker the easiest question on the paper. Draw a graph and explain how the different price mechanism tools can manipulate the figure 2(was a big help) price fluctations. Then evaluate with the PED and PES points

Reply 196

Original post by Dnkz7

nah i dont buy that - if that were the case it would be compared with another programme. It only said discuss the effect of the help-to-buy scheme for rented property.

It was compared-
Helptobuy: makes acquiring a house cheaper
Rented property: what people who don't own homes use
It's ok if you don't buy it but I think this makes more sense.

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Reply 197

zahanara

6

Original post by bulletman54

wasnt the PES negative ?

lols this is like when everyone is debating whether is was 3 or 5 and you get 5476578.

if you're talking about the multiple choice, apparently it was +4

but dw i got it wrong too- i put -0.4%

Reply 198