AQA buss2 Watch

jamiemariec
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I'm re-sitting the buss2 paper tomorrow and don't understand price elasticity in the slightest. Could anyone offer any tips?
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dottylee1886
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Have you watched Jim Riley's amazing BUSS2 briefing?
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imran_
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(Original post by dottylee1886)
Have you watched Jim Riley's amazing BUSS2 briefing?
its not amazing, its a copy of the buss4 workshop. How does he expect us to write so much for a single paragraph?
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dottylee1886
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Ok then.. Where would you be without Tutor2u?
(Original post by imran_)
its not amazing, its a copy of the buss4 workshop. How does he expect us to write so much for a single paragraph?
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imran_
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(Original post by dottylee1886)
Ok then.. Where would you be without Tutor2u?
Lol if you're only depending on his 'exam techniques' then good luck, he gets paid for the presentation, do you really think he gives a f*uck about how u do in the exam
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georgie2498
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what questions do you think will come up?
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imran_
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(Original post by georgie2498)
what questions do you think will come up?
Nobody knows. They would just be predictions and most likely wrong.
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imran_
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(Original post by jamiemariec)
I'm re-sitting the buss2 paper tomorrow and don't understand price elasticity in the slightest. Could anyone offer any tips?
PED is used to measure the impact a change in price has on demand. You wont be asked to work this out.

Inelastic demand, this is usually LESS than 1. This is where a change in price has little impact on demand. E.g. -0.7 is Enelastic.

Elastic demand, is where a change in price leaders to a GREATER change in demand. This is always GREATER than 1. E.g. -1.4

Always ignore the '- sign.
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jamiemariec
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(Original post by dottylee1886)
Have you watched Jim Riley's amazing BUSS2 briefing?
I have not but will now, thank you!
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jamiemariec
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(Original post by imran_)
PED is used to measure the impact a change in price has on demand. You wont be asked to work this out.

Inelastic demand, this is usually LESS than 1. This is where a change in price has little impact on demand. E.g. -0.7 is Enelastic.

Elastic demand, is where a change in price leaders to a GREATER change in demand. This is always GREATER than 1. E.g. -1.4

Always ignore the '- sign.
Thank you, much appreciated. PED is making a lot more sense now.
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imran_
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(Original post by jamiemariec)
Thank you, much appreciated. PED is making a lot more sense now.
You're welcome, remember businesses will need to react to changes in PED.

For example if a product is inelastic. Firms can INCREASE selling price in order to generate a greater revenue as consumers will still want to purchase the product. However this is dependant on how strongly inelastic it is. For example if its -0.1 which is fairly weak, then changing price may not be the best idea.

For elastic products, firms may chose to REDUCE the price to generate greater revenue as consumers would prefer a cheaper product.
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dottylee1886
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(Original post by imran_)
PED is used to measure the impact a change in price has on demand. You wont be asked to work this out.

Inelastic demand, this is usually LESS than 1. This is where a change in price has little impact on demand. E.g. -0.7 is Enelastic.

Elastic demand, is where a change in price leaders to a GREATER change in demand. This is always GREATER than 1. E.g. -1.4

Always ignore the '- sign.
You can be asked to calculate the PED, someone doesn't know their BUSS2 knowledge.

PED = % Change in the Quantity Demand / % Change in Price
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imran_
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(Original post by dottylee1886)
You can be asked to calculate the PED, someone doesn't know their BUSS2 knowledge.

PED = % Change in the Quantity Demand / % Change in Price
Lol, read the specification and come back to apologise for being wrong.
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dottylee1886
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Fair play my mistake, it is still useful to know and can be used to build up the analysis to achieve GAN.
(Original post by imran_)
Lol, read the specification and come back to apologise for being wrong.
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imran_
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(Original post by dottylee1886)
Fair play my mistake, it is still useful to know and can be used to build up the analysis to achieve GAN.
Simple maths. E.g. PED Of -0.4

means a 100% increase in price would only have a 40% change in demand. Correct me if i'm wrong
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dottylee1886
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Yes that's correct I take economics. They may give you PED (-0.4 Inelastic) and say that they wish to increase prices by 100% you could mentioned how this would only change demand by 40% which will lead to an increase in revenue etc. as you mentioned.
(Original post by imran_)
Simple maths. E.g. PED Of -0.4

means a 100% increase in price would only have a 40% change in demand. Correct me if i'm wrong
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vickyife1
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How did everyone find the exam today??
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josephpryor
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What did you get for 1a?
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meimaths123
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32188 units
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josephpryor
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Oh, great, so did I, was a bit worried for some reason.
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