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

Nope because it said assess the impact of the help to buy scheme on the rented market. In other words, how does a subsidy in a market affect its substitute market, their revenue would actually fall since demand will shift left as the price of substitutes has fallen

If I drew a subsidy graph but my explanation was wrong, would I get marks and if so how many?

Ah nah, I talked about subsidies too- it was most linked to extracts and suitable in all cases

Hi guys,

Any idea about the 15 marker? Hadn't covered price mechanism at all in lessons just remembered a bit I read about it a while ago! Spoke about how prices reflect consumer preferences and how resources are allocated. For application I used the price increase from the calculation question (percentage change) and also spoke about how the government was allocating more resources (government owned land) to housing? For the other side of the argument I spoke about how the low PES of housing in the UK means that firms aren't responding to increased consumer preference for housing. Does this sound along the right lines at all?

Also for the 20 marker spoke about subsidies but not min/max pricing as I was in a rush after that awful 15 marker. Went through all the usual stuff: subsidy definition, about how subsidising housing will increase supply, lowering price, increasing output and included S&D diagram. I then went on to say that a reason for doing this was to keep housing affordable for the poorest. Didn't really have time to write anything else for this side of the argument. For reasons against spoke about opportunity cost, likely inelastic PED of housing as it is a necessity and finally how firms may become dependant on the subsidy and therefore promoting inefficiency (X inefficient). I feel like I should have spoken about max min pricing but simply didn't have time. What do you guys think of this answer?

Overall I thought the paper was more challenging than I was expecting but am only really concerned about the 15 marker and 20 marker, although less so the 20 marker.

Right! I saw nothing that referenced XED in the extract, maybe next time we should pay more attention to the extract lol!

Did you counter argue subsidies? People becoming dependent, what the government should do after 2017? Etc...

It asked how the price of one good falling affected the other which was the clue to it being about XED as it measures the responsiveness of demand for one good or service to change in the price of another.

I don't specifically remember it being that straight forward. Most people found it confusing. I knew what XED was, I just obviously couldnt decode it from the Q and extract

I did (g), I basically waffled on about public goods and why governments needed to provide them, did a short reference to flood defences with some (but not enough) data, and then said that the provision must be financed by taxation as well as considering imperfect government information to try and scrape at leat one evaluation mark. At this point I had sixty seconds at best to fish for any marks I could, I spoke about how government provision of housing led to a rise in supply and a fall in price and then evaluated by saying 10,000 homes is insignificant in the UK market.

Awful questions given the amount of rich material in unit one. I feel kind of cheated out of all the work we have done learning topics that were barely touched on in the exam.

I sent out a load of unit 1 adapted papers to people on here and I've just had another look at the June 2015 one and guess what… it's almost exactly the same as what we got in our mock!! At least 6g is, the one question I didn't do since I did 6f so our paper was like a mix between June 2015 and the sample assessment

I honestly don't think the 10 marker had any reference to XED. I asked my Economics teacher who looked through the paper this morning and he said so... even my friends agreed as we wrote the same thing about subsidies by defining it and explaining how it will affect the market.