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AQA A-level Economics new 7136 - 06, 13 & 19 Jun 2017 [Exam Discussion] Watch

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    (Original post by Kaho326)
    Was I supposed to draw the negative externality diagram? It just doesn't make sense to me...
    The question asked why sugary drinks are consumed. What you could have done was draw the negative externalities diagram. What that shows is that the quantity consumed is more than the socially optimum level of output ie. overconsumed. You could then explain why by talking about information failure.
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    (Original post by DmdhJa)
    Answer to question 1 was 69.6 and question 2 was 495
    yep I recall that couldn't quite remember the figures but yes I did that.
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    I hope a feminist doesn't harshly mark my 9 marker in context 2 on reasons for different MRPS between women and men haha
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    (Original post by junky27)
    Thanks, I would have liked to have spoke more on the behavioural view but brought it into conclusion so happy days and no your 15 marker is certainly correct.
    Tbh I only talked about the behav stuff because I had forgotten a lot on market failure from last year don't worry xD
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    (Original post by Hamza Rashid)
    The question asked why sugary drinks are consumed. What you could have done was draw the negative externalities diagram. What that shows is that the quantity consumed is more than the socially optimum level of output ie. overconsumed. You could then explain why by talking about information failure.
    It sounds convincing. Should not have crossed out the diagram.
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    Wait for context 1 question 1 was it the 3 or 4 firm concentration ratio?
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    (Original post by coatsoft)
    Wait for context 1 question 1 was it the 3 or 4 firm concentration ratio?
    context 1 3 firm, context 2 five country mean
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    (Original post by junky27)
    context 1 3 firm, context 2 five country mean
    phew haha. Thanks
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    (Original post by ItsRoger)
    For the context 1 9 marker I wrote that royal mail would produce where MC=MR for profit maximisation and that the universal post service requiring them to deliver 6 days a week would increase their output to where MC=AR so their allocatively efficient and to optimize consumer surplus? Can anybody tell me if I'm right or wrong???!!!
    Yeah man I did that, don't see anything wrong with it and it's wrong to say that the average cost curve would shift up if wages stay the same.
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    If any of you need cheering up just check aqa economics on Twitter, exam Twitter always cheers me up lool
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    No point dwelling. Move on to the next one guys!
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    9 Marker context 2 , didn't have too much of a clue what to write as i thought it was mainly a wage discrimantion digram, drew the perfectly competative labour market diagram and tried to explain MRP could i possibly gain 2-3 marks out of 9, I anwsered everything else so i'm hoping i could at least save 2 marks here
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    (Original post by SANTR)
    No point dwelling. Move on to the next one guys!
    You are right - it helps to find closure tho
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    (Original post by Remaine)
    Also; for the 25 marker in Essay 3, do you need to talk about more than one policy?

    If you were to:

    - Acknowledge sugary drinks as a demerit good, resulting from imperfect information, which is information failure
    - Use a diagram to show the effects of this demerit good in the free market (above the socially optimal level of output, where MSB=MSC)
    - Define a tax, and refer to how it leftward shifts the S curve
    - Use a diagram to show just that, whilst also showing the total tax paid, the total tax paid by the consumer, the total tax paid by the producer
    - The advantages of tax (cost of negative externalities is internalised in the price of the good, so demand is reduced; revenue can be used to offset the negative externalities)
    - The disadvantages of tax (increases cost of production reducing international competitiveness which may cause firms to relocate, doesn't work if demand is price inelastic, just because externalities can be offset does not mean they will, difficult to put monetary value on cost of the negative externalities)
    - Mentioning how it depends on the price elasticity of demand, and how sugary drinks are more price elastic admittedly; but it does not mean they cannot switch to a cheaper sugary drink

    How would this fare?

    Cheers
    To be honest that sounds almost exactly the same as my essay but I said that unhealthy food and drink could be addictive causing the PED to be inelastic. Other than that I added in a short paragraph about a potential black market that could form because I had some spare time but yeah, what you just said looks good
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    What was the concentration ratio ? On scenario 1
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    (Original post by eaglescharlton)
    To be honest that sounds almost exactly the same as my essay but I said that unhealthy food and drink could be addictive causing the PED to be inelastic. Other than that I added in a short paragraph about a potential black market that could form because I had some spare time but yeah, what you just said looks good
    That is an interesting and valid stance - I was considering habitual consumption, but thought that was more applicable to cigarettes. It would have been nice to include, as analysis is analysis; if you put some behavioural economics in there to back this up too, you smashed it.
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    (Original post by Deavk006)
    What was the concentration ratio ? On scenario 1
    It was 53.5% from what i can remember.
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    (Original post by Jedwilk222)
    One way around this is if you refered to negative externalities associated with the impact on the NHS. More sugar consumed = more strain on health services = less health services available to others. Therefore the private cost of consuming these drinks e.g obesity is less than the social cost of insufficient health care available for others.
    This is why I was confused when drawing my diagram and put msc higher than mpc but I did mention this
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    ah brill
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    What monopoly diagram was it for context 1 - Q3?
 
 
 
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