AS · June 2023 · Paper 1
Which one of the following is the percentage increase in the maximum price to the average household bill?
Annotate the diagram below to show the original and new maximum price in this market.
Diagram needed. Open the original question paper for the diagram
Define the term ‘equilibrium price’.
Using the data provided, explain one likely factor that may influence the price elasticity of supply of gas.
The table below shows estimates of the price elasticity of supply and price elasticity of demand for gas. Natural Gas Price elasticity of supply +0.14 Price elasticity of demand −0.10 Which one of the following can be inferred from the table?
Define the term ‘specialisation’.
Which one of the following is a positive economic statement?
Explain one likely advantage of specialising in the production of goods to trade.
Explain one reason why it is rational for a firm to raise prices when there is excess demand.
Which one of the following is the most likely cross price elasticity of demand for close substitutes?
With reference to the above information, define the term ‘mixed economy’.
The diagram shows the production possibility frontier of an economy. Assuming the economy is at point W, annotate the diagram to show the opportunity cost of producing more consumer goods.
Diagram needed. Open the original question paper for the diagram
Which one of the following is a likely advantage of a command economy?
Case study · The market for television content
With reference to Figure 1 and Extract A, explain the relationship between price elasticity of demand and total revenue.
Case study · The market for television content
With reference to Extract B, explain two external benefits associated with the consumption of ‘public service broadcasting’ (line 2).
Case study · The market for television content
‘Television content is a public good’ (Extract B). Assess this statement.
Case study · The market for television content
Using examples from the information provided, explain what is meant by both ‘substitutes’ and ‘complementary goods’.
Case study · The market for television content
Discuss likely reasons why the market price of streaming television content is increasing. Draw a supply and demand diagram to support your answer.
Diagram needed. Open the original question paper for the diagram
Case study · The market for television content
Evaluate possible methods of government intervention to reduce the environmental damage caused by the consumption of television content.
Case study · The market for television content
Evaluate the possible disadvantages of a free market approach to the provision of television content.