OCR F581 Markets in Action - 11 May 2015 Watch

Wall Street
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(Original post by Super199)
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!

(Original post by Super199)
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!
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Makashima
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(Original post by Super199)
x
Supply determinants:

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
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Super199
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(Original post by Wall Street)
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!
Yeah thought the technique was that. Thanks
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Super199
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(Original post by Makashima)
Supply determinants:

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.
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Super199
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By the way are you guys doing F582 as well?
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Makashima
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(Original post by Super199)
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.
edit: I gave you determinants of demand not PED

But yeah SPLAT is correct!!!
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Wall Street
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(Original post by Super199)
By the way are you guys doing F582 as well?
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.

(Original post by Makashima)
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?
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Makashima
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(Original post by Wall Street)
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*
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Makashima
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(Original post by Super199)
By the way are you guys doing F582 as well?
SPLAT is correct, I gave you the determinants of DEMAND not PED
Sorry my bad
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Super199
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(Original post by Makashima)
SPLAT is correct, I gave you the determinants of DEMAND not PED
Sorry my bad
Haha it's all good. We have those moments
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Super199
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(Original post by Wall Street)
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.
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Super199
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Can someone explain the different type of economies to me and some examples of each?
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username1822535
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Only a month and 1 day omg (!!!!!!)
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Gladiatorsword
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(Original post by Super199)
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.
Coombsy has a good example on his page - 18/18

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username1822535
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#135
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(Original post by Wall Street)
Are you trying to cheat on your Mocks or something?
Oh I did the 2014 paper for my mock ngl it was a hard paper
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AssassinXJ
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(Original post by Wall Street)
Yeah, he's correct: it's the "spending by the central and local government".
I believe the textbook definition says "spending by the central bank and local government on goods and services"
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Super199
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#137
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Can someone explain PES determinants to me. Thanks
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AssassinXJ
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(Original post by Super199)
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).
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Makashima
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#139
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Hmmm are you guys revising everyday. How long and do you think it is difficult ???
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Makashima
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#140
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Anyone have the 2014 Mark scheme for this unit?!
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