Edexcel A Level Economics B Paper 1: Markets and how they work June 2017 question paper 9EB0/01

Using Extract A, calculate to 2 decimal places the operating profit margin for Costa for 2014. You are advised to show your working.

Using Extract D, calculate to 2 decimal places the percentage change in the coffee price from October 2014 to September 2015. You are advised to show your working.

Using a supply and demand diagram, illustrate the impact on the coffee shop market of the change in taste and fashion. (Extracts A and C)

Costa Coffee, Starbucks Coffee Company and Caffè Nero are the UK’s leading coffee shop chains. (Extract B)

Analyse one possible impact of the market structure on the pricing strategy of these firms.

Discuss whether market share is the most important business objective to a coffee shop chain, such as Timberyard.

Extract D shows a fall in the wholesale price of coffee during 2015.

Assess the impact this might have on prices charged in coffee shops.

Assess the importance of non-price competition in the UK coffee market.

Assess whether the UK coffee shop market could be considered contestable.

Using Extract E, evaluate the likely impact of falling crude oil prices on the UK economy.

Evaluate the likely impact on the UK of increased regulation of the UK banking industry.