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    (Original post by Khanthebrit)
    I would of pretty much put exactly this. My only question is how did you come to the conclusion that revenue rose by 6%? I did the calculation and got demand falling by 3% and used the fact that Liverpool football tickets are price inelastic, therefore meaning that the answer is A because a small change in price causes an even smaller change in demand.
    Because the 6 is the price it increased thus relating to revenue make any sense?
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    (Original post by rohan taneja)
    Because the 6 is the price it increased thus relating to revenue make any sense?
    I understand where you're coming from, I just don't understand how you figured out that revenue 'rose by 6%'. The price rose by 6%, and because demand only fell by -3% (less than that of price), it means that revenue will increase, thus making it price inelastic.
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    (Original post by Khanthebrit)
    I understand where you're coming from, I just don't understand how you figured out that revenue 'rose by 6%'. The price rose by 6%, and because demand only fell by -3% (less than that of price), it means that revenue will increase, thus making it price inelastic.

    That's right I guess then but I think either point would be right

    However I think we are going to be asked to calculate capacity utilisation tomorrow because we haven't been asked that for a while??
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    (Original post by rohan taneja)
    That's right I guess then but I think either point would be right

    However I think we are going to be asked to calculate capacity utilisation tomorrow because we haven't been asked that for a while??
    I got that feeling too . Just remember the equation and how to re-arrange it. Exchange rates might also come up, but that does not involve equations. Also, macroeconomics may come up as well.
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    (Original post by skittles100)
    diseconomies of scale definition and economic cycle defintion?
    Disconomies of scale is where the avg costs start rising again

    The economic cycle describes fluctuations in levels and rate of growth of GDP over a period of time
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    (Original post by Khanthebrit)
    Haven't looked in a book or anything, so I don't know the correct definition as of yet, but I believe it is this.

    Dis-economies of scale is when a business expands and becomes too large that its cost per unit of output begins to rise. This is generally down to the loss of motivation in employees and large businesses will start to incur more communication problems up and down the chain.
    thanks! do you know the key points we need to know about aggregate demand and supply
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    (Original post by Khanthebrit)
    I got that feeling too . Just remember the equation and how to re-arrange it. Exchange rates might also come up, but that does not involve equations. Also, macroeconomics may come up as well.
    You are doing unit 2 edexcel right because that is nowhere to be found in the book?
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    (Original post by Khanthebrit)
    I got that feeling too . Just remember the equation and how to re-arrange it. Exchange rates might also come up, but that does not involve equations. Also, macroeconomics may come up as well.
    Woah exchange rates? That's unit 1? And macroeconomics? What's that. Never even heard of it. Sure it's on the spec?


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    (Original post by deano321)
    Thank you for that so do you do the inverse for that one? So it's not divide it's times?


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    My tip would be just to put in what you do know into the original formula and re-arrange for what you need.

    Without any formula I just presumed that because it's price inelastic, and prices rose, the change in QD will be less therefore although sales would go down, profits would increase
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    (Original post by rohan taneja)
    You are doing unit 2 edexcel right because that is nowhere to be found in the book?
    Yes I am definitely doing the same paper as you guys . Macroeconomics is a posh word and may not be put in many of the books.

    What it essentially involves is 2 components:
    Aggregate Demand
    Aggregate Supply.

    It is a small section, and also talks about unemployment (structural, regional, frictional etc)
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    (Original post by deano321)
    Woah exchange rates? That's unit 1? And macroeconomics? What's that. Never even heard of it. Sure it's on the spec?


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    I don't think exchange rates will come up but macroeconomics is all about the economic cycle, what happens at each part of cycle, what effect is has and the diff types of unemployment
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    (Original post by Klatie)
    My tip would be just to put in what you do know into the original formula and re-arrange for what you need.

    Without any formula I just presumed that because it's price inelastic, and prices rose, the change in QD will be less therefore although sales would go down, profits would increase
    Ok thanks a lot. I'm just going to do my best with it! Came up last year tho... Unlikely it will come up



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    (Original post by Klatie)
    I don't think exchange rates will come up but macroeconomics is all about the economic cycle, what happens at each part of cycle, what effect is has and the diff types of unemployment
    That is not in the spec

    What board are u doing??
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    (Original post by Klatie)
    I don't think exchange rates will come up but macroeconomics is all about the economic cycle, what happens at each part of cycle, what effect is has and the diff types of unemployment
    ahh ok that's makes sense, cheers


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    (Original post by deano321)
    Ok thanks a lot. I'm just going to do my best with it! Came up last year tho... Unlikely it will come up



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    You sure that was last year aha if there was a question on Liverpool I swear I would have remembered D:

    I did the paper last year and came out with a B just trying to improve
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    (Original post by deano321)
    Woah exchange rates? That's unit 1? And macroeconomics? What's that. Never even heard of it. Sure it's on the spec?


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    There is a small section within my book (and the spec) which involves exchange rates. Many things from unit 1 can crop up in unit 2, for example, Market research. In times of uncertainty, businesses will undergo market research etc.

    You are expected to apply some unit 1 knowledge to unit 2, although I'd assume any unit 2 books will repeat some aspects from unit 1
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    (Original post by rohan taneja)
    That is not in the spec

    What board are u doing??
    It is and Edexcel
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    (Original post by Klatie)
    Disconomies of scale is where the avg costs start rising again

    The economic cycle describes fluctuations in levels and rate of growth of GDP over a period of time
    thanks! do you know the key points we need to know about macroeconomics?
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    (Original post by Khanthebrit)
    There is a small section within my book (and the spec) which involves exchange rates. Many things from unit 1 can crop up in unit 2, for example, Market research. In times of uncertainty, businesses will undergo market research etc.

    You are expected to apply some unit 1 knowledge to unit 2, although I'd assume any unit 2 books will repeat some aspects from unit 1
    Yeah it's not as much a topic itself more how it will impact parts from unit 2/how parts from unit 2 will impact it. It's sorta common sense after doing unit 1
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    (Original post by Khanthebrit)
    There is a small section within my book (and the spec) which involves exchange rates. Many things from unit 1 can crop up in unit 2, for example, Market research. In times of uncertainty, businesses will undergo market research etc.

    You are expected to apply some unit 1 knowledge to unit 2, although I'd assume any unit 2 books will repeat some aspects from unit 1
    I know pricing strategies can come up in unit 2 - were were explicitly told this. However we were not told any other areas :/


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