Edexcel A Level Economics A Paper 1: Markets and business behaviour June 2022 question paper 9EC0/01

Disney+ is a streaming service that distributes films and television series produced by the Walt Disney Studios.

(Source adapted from: https://www.businessofapps.com/data/disney-plus-statistics/)

Ceteris paribus, the most likely consequence of the above data is that Disney+ will experience an increase in its:

Draw a supply and demand diagram to show the likely effect of the change in the number of subscribers on the market equilibrium for Disney+ services.

The table below shows data on the drinks market in Chile in 2017.

(Source: adapted from https://bmcpublichealth.biomedcentral.com/ articles/10.1186/s12889-017-4098-x)

The price of sweetened drinks increases by 5%. Ceteris paribus, calculate the percentage change in the quantity demanded for sweetened drinks. You are advised to show your working.

The price of sweetened drinks increases by 5%. Ceteris paribus, calculate the percentage change in the quantity demanded for bottled water. You are advised to show your working.

Using the data on page 4, which one of the following is most likely?

A company that provides drinking water and treats waste water has been fined £180 000 after an incident that killed about 2 500 fish. The charges relate to an illegal discharge of sewage from the waste water treatment plant that polluted nine kilometres of the River Severn, a popular tourist destination.

(Source: adapted from https://www.leaderlive.co.uk/news/wrexham/ 19393552.water-company-fined-today-sewage-leaked-wrexham-river-killing-2-500-fish/)

Draw an externalities diagram to show the likely impact of the sewage discharge on the local tourist industry.

Which one of the following is the most likely effect of the £180 000 fine?

To:

Pilgrim’s Pride is the second-largest chicken supplier in the US. It will pay a $107.9 million fine for price fixing with Tyson Foods and other chicken suppliers. The firms limited production to force prices higher and harm major customers, including KFC. Pilgrim’s Pride is thought to have gained at least $361 million in total revenue from the collusion.

(Source: adapted from https://www.drovers.com/news/industry/ pilgrims-pride-agrees-price-fixing-fine)

Draw a simple two firm/two outcome game theory model to show why the chicken suppliers may have colluded.

Which one of the following is most closely associated with tacit collusion?

The makers of Fiat cars merged with the makers of Vauxhall cars in 2021. Fiat management had aggressively sought a merger to achieve economies of scale. The competition authorities in the EU investigated the merger.

(Source: adapted from https://www.thedrive.com/news/34856/ the-merged-fiat-chrysler-and-peugeot-group-will-be-called-stellantis)

Which one of the following best describes the merger of the makers of Fiat cars and Vauxhall cars?

Explain one type of internal economies of scale that the newly merged car company may achieve.

Explain one likely concern the EU competition authorities may have had about the merger.

With reference to Figure 1, calculate the three-firm concentration ratio for branded coffee shop chains.

With reference to Figure 2 and your understanding of price elasticity, examine two factors that may cause significant changes in the international price of coffee beans.

Profit maximisation is assumed to be the business objective of most firms. With reference to Extract A, assess whether this is the case for coffee shop owners.

Using a cost and revenue diagram, discuss the likely impact of ‘rising costs’ for coffee shops on their profitability (Extract A, line 2).

With reference to the information provided, discuss whether the coffee shop market is contestable.

Tesla held an 82% market share of the electric vehicle market in the United States during the first half of 2020.

(Source: adapted from https://electrek.co/2020/08/21/ tesla-holds-us-ev-market-losing-federal-tax-credit/)

Evaluate whether a monopoly is likely to operate efficiently. Refer to at least one monopoly of your choice.

Some occupations in the UK are facing large labour shortages. Hard-to-fill vacancies include qualified chefs, software engineers, construction workers and qualified nurses.

(Source: adapted from https://www.ft.com/content/ 36baacce-ddd0-11e8-9f04-38d397e6661c)

Evaluate the factors that might influence the supply of labour in an occupation of your choice.

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