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

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    Anyone have any idea at what the grade boundaries will be ?
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    My teacher said it was definitely XED or at least refer to them as substitutes
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    (Original post by Lemauricien)
    Renting for a property and purchasing housing are both forms of shelter .
    The Help to buy scheme decreased price for houses so demand for renting falls because of the negative XED ( Since subs)
    Negative Xed? Subs have a positive XED
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    I thought the help to buy scheme encourages people to buy more houses as the subsidy was for the people not for the firms. So would that not increase the price of houses?
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    (Original post by Balrajan singh)
    I thought the help to buy scheme encourages people to buy more houses as the subsidy was for the people not for the firms. So would that not increase the price of houses?
    Yup that's what I said too. I dont understand how it has anything to do with supply
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    The help to buy scheme increases the demand of houses as its easier for people to buy them. If you draw a XED diagram (for subs) then it will suggest that prices rise for renting. So im a bit confused. I think XED only works if the price of one good changes not the demand. If demand for another good increases then the demand for the substitute good will fall. So thats what i put 😐
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    Where can I find mark schemes for this paper done today?
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    (Original post by zayn008)
    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
    Is there a mark scheme for this 20 marker anywhere?
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    (Original post by Balrajan singh)
    Negative Xed? Subs have a positive XED
    Oh yhyh I lost marks there then i crossed out positive and wrote negative I smh
    But I described the transfer mechanisms so idk, I need like 70 in paper 2 😒
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    (Original post by Grtty)
    could you have spoken about Revenue for the rent market and how it increases?
    Yeah that's fine. You could also mention an increase in demand as a help to buy scheme helps those on low incomes.
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    (Original post by Dnkz7)
    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.
    Well it did... so gg A grade
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    (Original post by TheKevinFang)
    Well it did... so gg A grade
    Lol mentioned that they were substitutes but forgot to write XED formula.......ggwp
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    (Original post by rosemondtan)
    Lol mentioned that they were substitutes but forgot to write XED formula.......ggwp
    Hmm, did you mention anything about XED in general? i.e. an increase in supply for houses, due to subsidies, means the equilibrium price falls, which means demand for rental decreases because they are substitutes?

    You may lose one or two marks for not mentioning XED is positive/the formula, but you should be okay if you show the reasoning for a fall in demand for rental markets.

    Also what were your evaluations? I put:

    - Expensive rental markets not affected, as subsidy is for new buyers (tends to buy cheap houses).

    - Magnitude of subsidy changes magnitude of demand fall for rental markets?
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    (Original post by TheKevinFang;[url="tel:64900529")
    64900529[/url]]Hmm, did you mention anything about XED in general? i.e. an increase in demand for houses, due to subsidies, means the equilibrium price falls, which means demand for rental increases because they are substitutes?

    You may lose one or two marks for not mentioning XED is positive/the formula, but you should be okay if you show the reasoning for a fall in demand for rental markets.

    Also what were your evaluations? I put:

    - Expensive rental markets not affected, as subsidy is for new buyers (tends to buy cheap houses).

    - Magnitude of subsidy changes magnitude of demand fall for rental markets?

    Why would the demand for rental properties increase? Shouldn't it decrease because prices for houses have fallen? Either that, or prices for house may increase because of the increased amount of demand...? Which one's right?
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    (Original post by Diastal)
    Why would the demand for rental properties increase? Shouldn't it decrease because prices for houses have fallen? Either that, or prices for house may increase because of the increased amount of demand...? Which one's right?
    I meant decrease sorry, so yeah since the price of housing decreases due to subsidy shifting supply to the right, then demand for rental decreases, as XED is positive.
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    (Original post by TheKevinFang)
    Hmm, did you mention anything about XED in general? i.e. an increase in supply for houses, due to subsidies, means the equilibrium price falls, which means demand for rental decreases because they are substitutes?

    You may lose one or two marks for not mentioning XED is positive/the formula, but you should be okay if you show the reasoning for a fall in demand for rental markets.

    Also what were your evaluations? I put:

    - Expensive rental markets not affected, as subsidy is for new buyers (tends to buy cheap houses).

    - Magnitude of subsidy changes magnitude of demand fall for rental markets?
    Yup I explained everything about substitutes just didn't put the formula lmao. I evaluated that some people may still be unable to afford the mortgage even if it's been subsidised so they will still have to rent. Also, demand for rent amongst expatriates especially those on work permits will stay the same because it's simply not economically feasible to buy a house to stay in for the duration of the work permit! And something else I forgot lol
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    (Original post by rosemondtan)
    Yup I explained everything about substitutes just didn't put the formula lmao. I evaluated that some people may still be unable to afford the mortgage even if it's been subsidised so they will still have to rent. Also, demand for rent amongst expatriates especially those on work permits will stay the same because it's simply not economically feasible to buy a house to stay in for the duration of the work permit! And something else I forgot lol
    The formula will only be worth one mark so I wouldn't stress over that too much. It sounds like you answered it well.
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    (Original post by rosemondtan)
    Yup I explained everything about substitutes just didn't put the formula lmao. I evaluated that some people may still be unable to afford the mortgage even if it's been subsidised so they will still have to rent. Also, demand for rent amongst expatriates especially those on work permits will stay the same because it's simply not economically feasible to buy a house to stay in for the duration of the work permit! And something else I forgot lol
    Haha, very good second evaluation point! How did you think of that in the exam situation? I was too busy ******** my pants because of the first question... Never mind my urge to actually take a dump...

    You should be fine, as the analysis points are out of 6, so if you feel like you've written enough, especially with a subsidy diagram, you may still get 6/6.

    Gl with C1 in 10 hours! (if you take maths)
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    (Original post by TheKevinFang)
    Haha, very good second evaluation point! How did you think of that in the exam situation? I was too busy ******** my pants because of the first question... Never mind my urge to actually take a dump...

    You should be fine, as the analysis points are out of 6, so if you feel like you've written enough, especially with a subsidy diagram, you may still get 6/6.

    Gl with C1 in 10 hours! (if you take maths)
    Yup C1 HAHA. And idk man it just kind of popped into my mind but I definitely feel like my 20 marker was very messy sooo yup. Plus most of my points in the 15/20 marker were quite unusual (I.e. Not typical responses) But other than that the paper didn't make me feel like I want to kill myself so I guess it's fine haha. You too!! How much have you studied for C1?
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    (Original post by lpjjohnson)
    The formula will only be worth one mark so I wouldn't stress over that too much. It sounds like you answered it well.
    Haha thanks. Most people didn't think of that point and didn't get it when I tried to explain it to them so I thought I messed up. Glad some people understand it good luck for C1! (if you do Maths)
 
 
 
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