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    (Original post by epic within)
    I shifted the demand curve for some reason
    I was literally about to do that but then read the question again. Hopefully you didn't loose too many marks?
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    (Original post by BBajwa)
    It could actually be A. I put B but if demand for tea goes up. Demand for cofee will go down causing a lower price causing lower producer surplus. Thats quite complicated though. B seemed obvious.
    question asked what increased producer surplus for coffee, technology improvements would reduce costs of productions and shift S curve to the right increasing producer surplus, option A reduces it
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    (Original post by epic within)
    question asked what increased producer surplus for coffee, technology improvements would reduce costs of productions and shift S curve to the right increasing producer surplus, option A reduces it
    Yep^

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    (Original post by A-LevelEconomist)
    I was literally about to do that but then read the question again. Hopefully you didn't loose too many marks?
    I know you get 1 mark for drawing the basic demand and supply diagram and get 1 mark for using the data, better than 0
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    Tea and coffee are substitutes. Advertising for tea would increase demand for tea (as advertising has a positive effect on demand) and subsequently a fall in demand for coffee and a fall in producer surplus
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    Feel like a bit of a mug for missing out the second 14 marker

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    (Original post by epic within)
    question asked what increased producer surplus for coffee, technology improvements would reduce costs of productions and shift S curve to the right increasing producer surplus, option A reduces it
    Yh you are right and I put that in the exam. That other guy just confused me.
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    (Original post by Princepieman)
    Feel like a bit of a mug for missing out the second 14 marker

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    the one on tradable pollution permits?
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    So for the MCQ we have answers to:

    The PPF question- the answer was that producing more capital goods would lead to economic growth

    The YED question about meats- Fish has a higher YED than meat

    The buffer stock question- the government would sell from its stockpile

    The price mechanism question- acts as a signal for firms to make production decisions

    The question about Ibiza- decrease in revenue as demand is elastic

    The question about a rise in producer surplus- increase in technology will increase producer surplus

    The externality question- there would be a net welfare gain

    The free market/ market failure question- the under provision of public goods.
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    (Original post by Amrazing98)
    Tea and coffee are substitutes. Advertising for tea would increase demand for tea (as advertising has a positive effect on demand) and subsequently a fall in demand for coffee and a fall in producer surplus
    Yes but it was about an increase in producer surplus. You'd still get marks tho.

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    (Original post by Princepieman)
    Yes but it was about an increase in producer surplus. You'd still get marks tho.

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    Exactly my point. so surely the advertisement for tea couldn't have increased surplus like everyone else is saying
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    (Original post by A-LevelEconomist)
    So out of eight MCQ we have answers to:

    The PPF question- the answer was that producing more capital goods would lead to economic growth

    The YED question about meats- Fish has a higher YED than meat

    The buffer stock question- the government would sell from its stockpile

    The price mechanism question- acts as a signal for firms to make production decisions

    The question about Ibiza- decrease in revenue as demand is elastic

    The question about a rise in producer surplus- increase in technology will increase producer surplus

    There are twobquestions left... One had an externality diagram and I forgot the other one??
    2nd one is the wrong way around Meat > Fish.



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    (Original post by A-LevelEconomist)
    So out of eight MCQ we have answers to:

    The PPF question- the answer was that producing more capital goods would lead to economic growth

    The YED question about meats- Fish has a higher YED than meat

    The buffer stock question- the government would sell from its stockpile

    The price mechanism question- acts as a signal for firms to make production decisions

    The question about Ibiza- decrease in revenue as demand is elastic

    The question about a rise in producer surplus- increase in technology will increase producer surplus

    There are two questions left... One had an externality diagram and I forgot the other one??
    one was that in the free market economy there are under provision of public goods or something like that
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    (Original post by Princepieman)
    2nd one is the wrong way around Meat > Fish.
    All I remember is that that one of them had a YED of 1.2 or something so it made that good more elastic than the other one. I can't remember the exact question...

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    (Original post by A-LevelEconomist)
    So out of eight MCQ we have answers to:

    The PPF question- the answer was that producing more capital goods would lead to economic growth

    The YED question about meats- Fish has a higher YED than meat

    The buffer stock question- the government would sell from its stockpile

    The price mechanism question- acts as a signal for firms to make production decisions

    The question about Ibiza- decrease in revenue as demand is elastic

    The question about a rise in producer surplus- increase in technology will increase producer surplus

    There are two questions left... One had an externality diagram and I forgot the other one??
    The externality one was about vaccinations and it had different scenarios and I think it said if they produced a certain amount, it would reach the social optimum point and the external benefit would be internalised, that's what I put for that one
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    (Original post by epic within)
    one was that in the free market economy there are under provision of public goods or something like that
    Yes I put market failure occurs when public goods like strew lighting is under provided.
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    (Original post by A-LevelEconomist)
    All I remember is that that one of them had a YED of 1.2 or something so it made that good more elastic than the other one. I can't remember the exact question...

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    Yeah, it was like fish had an income elasticity of 0.7 or something, making it inelastic and meat had 1.2 so it was bigger and elastic as well
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    (Original post by emilia_claire)
    The externality one was about vaccinations and it had different scenarios and I think it said if they produced a certain amount, it would reach the social optimum point and the external benefit would be internalised, that's what I put for that one
    It said something about the price mechanism ?? I didn't put that one..
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    (Original post by emilia_claire)
    Yeah, it was like fish had an income elasticity of 0.7 or something, making it inelastic and meat had 1.2 so it was bigger and elastic as well
    I remember putting option D down.....
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    (Original post by emilia_claire)
    The externality one was about vaccinations and it had different scenarios and I think it said if they produced a certain amount, it would reach the social optimum point and the external benefit would be internalised, that's what I put for that one
    wasn't it if they increase the amount of vaccines, there would be a net welfare gain
 
 
 
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