OCR F581 Markets in Action - 11 May 2015 Watch

c223
Badges: 2
#1801
Report 3 years ago
#1801
(Original post by aoxa)
That's different to how I've been taught it, and different to how I've seen past consumer surplus questions on mark schemes, but I guess we've just got to hope for the best!
Normally you could probably get away with showing two points on the demand curve to illustrate the decrease/increase in CP, however the question definitely asked for a reduction in the quantity supplied. I've also seen mark schemes where just the demand curve was sufficient but I'm not sure what would happen here as it asked for supply.
reply
aoxa
Badges: 9
Rep:
?
#1802
Report 3 years ago
#1802
(Original post by mayhs98)
I mean as long as you showed the consumer surplus on the demand curve making the old CS and new CS (two triangles) I guess that's fine but it did say in question that SUPPLY DECREASES so you know that's why a lot of people showed a shift in supply curve to the left....
I saw Chloe-Jessica's explanation of this - so I assume you've been taught the same way as her, but the method she used for showing consumer surplus was different to the way I was taught - which is why I was asking about why you had a supply curve.
0
reply
Iz-Matt
Badges: 1
Rep:
?
#1803
Report 3 years ago
#1803
(Original post by aoxa)
I saw Chloe-Jessica's explanation of this - so I assume you've been taught the same way as her, but the method she used for showing consumer surplus was different to the way I was taught - which is why I was asking about why you had a supply curve.
I put one in, i wouldn't have normally but the question mentioned a fall in supply. I included it to illustrate a fall in supply rather than a rise in price for other factors.
0
reply
Yousf
Badges: 10
Rep:
?
#1804
Report 3 years ago
#1804
(Original post by chloe-jessica)
With consumer surplus diagrams, you need both curves to show the equilibrium price. The consumer surplus is then the area between the equilibrium price and the top of the demand curve (the top triangle if that makes sense). Without the supply curve, you wouldn't have the price.
Attachment 395793
How many marks will i get if i just drew a supply and demand digram showing supply shifting to the left and labelling the new equilibria?
0
reply
midgemeister7
Badges: 17
Rep:
?
#1805
Report 3 years ago
#1805
(Original post by Yousf)
How many marks will i get if i just drew a supply and demand digram showing supply shifting to the left and labelling the new equilibria?
Probably 1 I'd imagine, maybe 2 at a stretch

Posted from TSR Mobile
0
reply
aoxa
Badges: 9
Rep:
?
#1806
Report 3 years ago
#1806
(Original post by chloe-jessica)
Normally you could probably get away with showing two points on the demand curve to illustrate the decrease/increase in CP, however the question definitely asked for a reduction in the quantity supplied. I've also seen mark schemes where just the demand curve was sufficient but I'm not sure what would happen here as it asked for supply.
(Original post by Iz-Matt)
I put one in, i wouldn't have normally but the question mentioned a fall in supply. I included it to illustrate a fall in supply rather than a rise in price for other factors.
Ah well - I've never been taught to put a supply curve in, so at least now, if I fail, I can blame my teacher

I didn't like the paper anyways - all the questions were so oddly phrased compared to past papers, and the bloody essay took me an age to write.
0
reply
ncrm97
Badges: 0
Rep:
?
#1807
Report 3 years ago
#1807
Reading everyone's responses on here is making me doubt my 18 mark answer.

- I wrote that subsidies can be used to fix the market failure of the positive externality of underproduction.
- I linked to the case study, and wrote that in this instance, biofuel crops (merit goods?) are encouraged by the EU as alternative energy sources which are needed.
- A subsidy would decrease costs of production, and would shift supply right (shown on diagram).
- I then mentioned the positives and negatives of subsidies, as well as commenting on the effectiveness (only brief comments on opportunity cost and elasticity).
- I made a weak link to a potential alternative to increase production of merit goods such as biofuel crops; the government could provide information and guidance on how to produce more effectively giving encouragement, etc.
- Listed positives and negatives of the alternative.
- My conclusion was also quite weak, suggesting a combination of a subsidy and information provision, which may be more effective than a subsidy alone for correcting market failure.
- I quickly wrote a comment at the very end questioning again opportunity cost, and whether merit goods are a valid concept.

I have absolutely no idea if this is right, and it's really worrying. Am I at least along the right lines?
0
reply
TazLi
Badges: 2
Rep:
?
#1808
Report 3 years ago
#1808
Sum up quickly here:

Shift in demand or supply sufficient

Consumer surplus shifts supply left reducing area of triangle 'consumer surplus'

18 marker - Definition Analysis of consumption or production positive externalities. Then alternatives I used taxation then evaluation
0
reply
Formless
Badges: 16
Rep:
?
#1809
Report 3 years ago
#1809
(Original post by 2014_GCSE)
I wrote next to it: A decrease in supply would cause a fall in price on the demand curve.

Then did a consumer surplus diagram with fallen price.
How would a decrease in price come about after a decrease in supply, surely it increases in price.
0
reply
Iz-Matt
Badges: 1
Rep:
?
#1810
Report 3 years ago
#1810
(Original post by aoxa)
Ah well - I've never been taught to put a supply curve in, so at least now, if I fail, I can blame my teacher

I didn't like the paper anyways - all the questions were so oddly phrased compared to past papers, and the bloody essay took me an age to write.
I'm sure you won't be penalized for not including the curve, as long as you showed a price rise and write below about changes to consumer surplus you will be fine! Yeah same, my essay usually takes me 30mins, and I don't have time to re-read my answers properly!
0
reply
Iz-Matt
Badges: 1
Rep:
?
#1811
Report 3 years ago
#1811
(Original post by Formless)
How would a decrease in price come about after a decrease in supply, surely it increases in price.
Fall in supply would suggest that there is a shortage, so demand exceeds supply so prices rise so the market clears, the price mechanism does all this
0
reply
CamilleClarke
Badges: 0
Rep:
?
#1812
Report 3 years ago
#1812
(Original post by *Stefan*)
The diagram is worth 4 marks. Then 2 for explanation.

The L4 commentary you added was unnecessary here to be honest, but doesn't hurt anyone :P

Posted from TSR Mobile
By the explanation is increase in price P to P1 and quantity from Q to Q1 sufficient? like all the other past questions?
0
reply
2014_GCSE
Badges: 3
Rep:
?
#1813
Report 3 years ago
#1813
(Original post by Formless)
How would a decrease in price come about after a decrease in supply, surely it increases in price.
Sorry, I increased supply and increased price and increased the Consumer Surplus. No supply curve shown though.

How many marks?
0
reply
Iz-Matt
Badges: 1
Rep:
?
#1814
Report 3 years ago
#1814
I included an alternative in my conclusion. Talked about tradable permits to reduce carbon emissions instead of subsidizing bio-fuels because it's less risky and easier to gauge
0
reply
aoxa
Badges: 9
Rep:
?
#1815
Report 3 years ago
#1815
(Original post by Iz-Matt)
I'm sure you won't be penalized for not including the curve, as long as you showed a price rise and write below about changes to consumer surplus you will be fine! Yeah same, my essay usually takes me 30mins, and I don't have time to re-read my answers properly!
I gave myself 45 mins for the essay (considering they normally take me 30-35 minutes max), and was still pressed for time! I only had about 3 minutes to go back, add to my introduction, and then do the '2 examples of why one agricultural good is more price elastic that the other', which really annoyed me, because I wanted to add to the comment on questions too.
0
reply
Coombsy
Badges: 8
Rep:
?
#1816
Report 3 years ago
#1816
(Original post by samrees29)
my answer was almost identical to yours however on my diagrams i wrote quantity demanded and not quantity , wghat do you think the outcome will be?
I did just look at the mark scheme for the question I did and it said 'a diagram is likely but not required'. You may get penalised (I'm not sure how likely, sorry) but even if you do it should only be a few marks. In A2 mark schemes they seem to be more specific about the axes labels.
0
reply
A level sufferer
Badges: 13
Rep:
?
#1817
Report 3 years ago
#1817
1 question: for the first diagram, the increase in price one, Did we have to shift both supply and demand or just supply


Posted from TSR Mobile
0
reply
c223
Badges: 2
#1818
Report 3 years ago
#1818
(Original post by ncrm97)
Reading everyone's responses on here is making me doubt my 18 mark answer.

- I wrote that subsidies can be used to fix the market failure of the positive externality of underproduction.
- I linked to the case study, and wrote that in this instance, biofuel crops (merit goods?) are encouraged by the EU as alternative energy sources which are needed.
- A subsidy would decrease costs of production, and would shift supply right (shown on diagram).
- I then mentioned the positives and negatives of subsidies, as well as commenting on the effectiveness (only brief comments on opportunity cost and elasticity).
- I made a weak link to a potential alternative to increase production of merit goods such as biofuel crops; the government could provide information and guidance on how to produce more effectively giving encouragement, etc.
- Listed positives and negatives of the alternative.
- My conclusion was also quite weak, suggesting a combination of a subsidy and information provision, which may be more effective than a subsidy alone for correcting market failure.
- I quickly wrote a comment at the very end questioning again opportunity cost, and whether merit goods are a valid concept.

I have absolutely no idea if this is right, and it's really worrying. Am I at least along the right lines?
Sounds like a good answer to me it was balanced and you included alternatives, you possibly could have done with a little bit more evaluation saying whether subsidies would be effective at all times (eg. talk about PED of good and level of subsidy given) but what you've written here definitely sounds relevant so don't worry!
reply
ncrm97
Badges: 0
Rep:
?
#1819
Report 3 years ago
#1819
(Original post by chloe-jessica)
Sounds like a good answer to me it was balanced and you included alternatives, you possibly could have done with a little bit more evaluation saying whether subsidies would be effective at all times (eg. talk about PED of good and level of subsidy given) but what you've written here definitely sounds relevant so don't worry!
Ok, thank you!
0
reply
mickel_w
Badges: 9
Rep:
?
#1820
Report 3 years ago
#1820
Anyone made a thread for unit 2 yet?

The notes and feedback on here was really useful, going to need it even more for unit 2 though! :P
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

University open days

  • Cranfield University
    Cranfield Forensic MSc Programme Open Day Postgraduate
    Thu, 25 Apr '19
  • University of the Arts London
    Open day: MA Footwear and MA Fashion Artefact Postgraduate
    Thu, 25 Apr '19
  • Cardiff Metropolitan University
    Undergraduate Open Day - Llandaff Campus Undergraduate
    Sat, 27 Apr '19

Have you registered to vote?

Yes! (264)
39.11%
No - but I will (46)
6.81%
No - I don't want to (50)
7.41%
No - I can't vote (<18, not in UK, etc) (315)
46.67%

Watched Threads

View All