Edexcel A Level Economics B Paper 1: Markets and how they work October 2020 question paper 9EB0/01

In July 2008 the jet fuel price per gallon was $3.89. In January 2018 it was $1.95.

Calculate, to two decimal places, the percentage decrease in the price of jet fuel between July 2008 and January 2018. You are advised to show your working.

A company that refits aircraft for airlines was charging a price of £300 000 to refit an aircraft and demand was six refits per year. When the company reduced its price to £298 000 per aircraft the demand increased to seven aircraft per year.

Calculate the marginal revenue gained from the decrease in price for refitting an aircraft.

Using a supply and demand diagram, illustrate the likely impact on BA of further bad publicity for the business.

Analyse two ways secondary market research may be used by airlines, such as BA, to help increase sales.

Discuss the importance to BA of survival as a business objective.

Assess the government’s decision to reduce air passenger duty (APD) as part of its vision for UK aviation.

Assess the possible impact of rising fuel prices on an airline business.

The European Commission has fined BA for its involvement in a cartel.

Assess the extent to which this may negatively impact BA.

Evaluate the extent to which these externalities are likely to benefit the UK economy.

Evaluate the potential impact of Amazon ’s market power on its stakeholders.