Demand

Refer to Figure 1. Explain the likely effect of the change in subsidy levels between 2017 and 2018 on rail fares.

Include a supply and demand diagram in your answer.

With reference to Figure 2, examine two possible factors which may have influenced demand for rail travel since 2008.

Assess whether complete nationalisation of the rail industry might protect employees.

With reference to Extract A, paragraph 3, discuss whether the rail network can be considered to be a natural monopoly.

Discuss the likely benefits of price discrimination to rail passengers. Use a diagram to support your answer.

Refer to Figure 1. Explain the likely effect of the change in subsidy levels between 2017 and 2018 on rail fares.

Include a supply and demand diagram in your answer.

With reference to Figure 2, examine two possible factors which may have influenced demand for rail travel since 2008.

Assess whether complete nationalisation of the rail industry might protect employees.

With reference to Extract A, paragraph 3, discuss whether the rail network can be considered to be a natural monopoly.

Discuss the likely benefits of price discrimination to rail passengers. Use a diagram to support your answer.

The International Energy Agency has predicted that oil use by cars will peak in 2025 because of the increasing number of drivers switching to electric vehicles.

(Source adapted from: https://www.thetimes.co.uk)

Evaluate the likely microeconomic consequences of consumers shifting from vehicles powered by fuel obtained from oil to electric‑powered vehicles.

The International Energy Agency has predicted that oil use by cars will peak in 2025 because of the increasing number of drivers switching to electric vehicles.

(Source adapted from: https://www.thetimes.co.uk)

Evaluate the likely microeconomic consequences of consumers shifting from vehicles powered by fuel obtained from oil to electric‑powered vehicles.

The average fee charged by high-street estate agents to homeowners for selling property is 1.3% of the final sale price.

(Source: http://www.which.co.uk/money/mortgages-and-property/home-movers/guides/selling-a-house/estate-agent-fees-and-contracts)

Assume the selling fee is 1.3%. Calculate the payment received by an estate agent on a property sold for £489 000. You are advised to show your working.

In August 2016 the Office for National Statistics reported that the average house price in London was £489 000, whereas in the North East of England it was £127 000.

The ratio of the average house price in London to the average house price in the North East of England is:

Explain one likely reason for the difference in average house prices between London and the North East of England.

The following graph shows the global sales of personal computers (PCs) between 2011 and 2015.

(Source: adapted from IDC and reported in The Times, 14th January 2016)

The percentage decrease in sales of PCs between 2011 and 2015 is:

Explain one likely reason for the decrease in sales of PCs.

The following table shows global sales of PCs by company in 2015.

(Source: IDC, reported in The Times, 14th January 2016)

Calculate the five-firm concentration ratio. You are advised to show your working.