: Pearson Edexcel past-paper questions pack
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The price mechanism, consumer and producer surplus

Past-paper questions pack

Name
Class
Date set
Date due
Score/ 95

Questions are numbered; the mark schemes (the answer key) follow on separate pages so the question pages can be handed out alone. www.economicsaleveltutor.com

Pearson Edexcel AS and A-level Economics past-paper questions since 2016 · 17 parts · mark schemes follow the questions · www.economicsaleveltutor.com · Questions and mark schemes © Pearson Edexcel

1. June 2023 · AS Paper 1 · Q4(a) · 3 marks · AO1=1,AO2=1,AO3=1
(a) Explain one reason why it is rational for a firm to raise prices when there is excess demand. (3)
2. June 2023 · Paper 1 · Q4(b) · 2 marks · AO1=1,AO3=1
(b) Explain the likely impact of the increase in price of a season ticket on consumer surplus. (2) The diagram below shows the demand and supply for sugary drinks. Price of sugary M S drinks F G Minimum P1 price E H Pe L J D K
3. June 2023 · Paper 1 · Q4(c) · 1 marks · AO2=1
Quantity of sugary drinks Qe Q2 Q1 0 (c) Which one of the following areas represents the change in producer surplus when a minimum price is imposed? (1) A FEPeP1 B FMP1 C GEPeP1 D GKP1
4. October 2020 · AS Paper 1 · Q1(b) · 1 marks ·
(b) Which one of the following is the best example of the rationing function of the price mechanism? (1) A An increase in demand, leading to a rise in price, will encourage new firms to enter the market B Changes in price provide information to both producers and consumers C If a product is scarce, a rise in price is likely to make the shortage worse D When there is a shortage of a product, the price will rise and discourage some consumers from buying the product
5. October 2020 · Paper 1 · Q1(b) · 1 marks · AO3=1
(b) The indirect tax on fuel is increased in a market in which the price elasticity of demand is -0.1. Which one of the following is the most likely effect on consumer and producer surplus? (1) A Consumer surplus and producer surplus both decrease B Consumer surplus and producer surplus both increase C Consumer surplus decreases and producer surplus increases D Consumer surplus increases and producer surplus decreases
6. October 2020 · AS Paper 1 · Q6(e) · 15 marks · AO1=3,AO2=3,AO3=3,AO4=6
(e) With reference to Figure 1 and Extract A, discuss the benefits of allowing universities to charge higher tuition fees for some degree courses. (15)
7. October 2020 · AS Paper 1 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6
(f) Evaluate the possible advantages of a free market approach to providing services such as education. (20)
8. June 2019 · AS Paper 1 · Q2(a) · 2 marks · AO2=2
(a) Annotate the diagram to show the change in consumer surplus in the market for diesel vehicles, following the change in demand caused by the proposed 2025 ban in some city centres. (2) Price of diesel vehicles S P D 0 Q Quantity of diesel vehicles
9. June 2019 · Paper 1 · Q5(a) · 2 marks · AO1=1,AO3=1
(a) Explain how resources are allocated in a free market economy. (2)
10. June 2018 · AS Paper 1 · Q3(a) · 1 marks ·
(a) Using the data above, which one of the following is a function of the price mechanism in the market for private dental care? (1) A Acting as a signal to dentists when deciding whether to provide private dental treatment B Eliminating a shortage of private dentists by allowing the price of private treatment to fall C Encouraging government intervention to set dental care targets D Incentivising private dentists to offer only NHS treatment
11. June 2018 · AS Paper 1 · Q5(a) · 1 marks · AO1=1
(a) Define the term ‘consumer surplus’. (1)
12. June 2017 · AS Paper 1 · Q3(b) · 1 marks · AO1=1
(b) The most likely effect of cutting subsidies for the installation of solar panels is to: (1) A increase producer surplus B decrease the provision of public goods C decrease consumer surplus D increase government expenditure
13. June 2017 · Paper 1 · Q3(c) · 1 marks ·
(c) One effect of the subsidy is to increase: (1) A consumer surplus B market failure C public good provision D tax revenue
14. June 2017 · AS Paper 1 · Q4(a) · 3 marks · AO1=1,AO2=1,AO3=1
(a) Explain how the price mechanism responds to excess supply in a free market. (3)
15. June 2017 · AS Paper 1 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6
(f) Evaluate the possible advantages of a free market approach to cigarette consumption. (20)
16. June 2016 · AS Paper 1 · Q6(c) · 6 marks · AO1=2,AO2=2,AO3=2
(c) Explain the likely impact on producer surplus of an increase in the demand for housing. Use a diagram to illustrate your answer. (6)
17. June 2016 · AS Paper 1 · Q6(e) · 15 marks · AO1=3,AO2=3,AO3=3,AO4=6
(e) With reference to Figures 1 and 2 and your own knowledge, discuss the functions of the price mechanism in allocating housing. (15)

Mark schemes

1. June 2023 · AS Paper 1 · Q4(a)
Mark scheme June 2023 Paper 1 Q4(a)
2. June 2023 · Paper 1 · Q4(b)
Mark scheme June 2023 Paper 1 Q4(b)
3. June 2023 · Paper 1 · Q4(c)
Mark scheme June 2023 Paper 1 Q4(c)
4. October 2020 · AS Paper 1 · Q1(b)
Mark scheme October 2020 Paper 1 Q1(b)
5. October 2020 · Paper 1 · Q1(b)
Mark scheme October 2020 Paper 1 Q1(b)
6. October 2020 · AS Paper 1 · Q6(e)
Mark scheme October 2020 Paper 1 Q6(e)
7. October 2020 · AS Paper 1 · Q6(f)
Mark scheme October 2020 Paper 1 Q6(f)
8. June 2019 · AS Paper 1 · Q2(a)
Mark scheme June 2019 Paper 1 Q2(a)
9. June 2019 · Paper 1 · Q5(a)
Mark scheme June 2019 Paper 1 Q5(a)
10. June 2018 · AS Paper 1 · Q3(a)
Mark scheme June 2018 Paper 1 Q3(a)
11. June 2018 · AS Paper 1 · Q5(a)
Mark scheme June 2018 Paper 1 Q5(a)
12. June 2017 · AS Paper 1 · Q3(b)
Mark scheme June 2017 Paper 1 Q3(b)
13. June 2017 · Paper 1 · Q3(c)
Mark scheme June 2017 Paper 1 Q3(c)
14. June 2017 · AS Paper 1 · Q4(a)
Mark scheme June 2017 Paper 1 Q4(a)
15. June 2017 · AS Paper 1 · Q6(f)
Mark scheme June 2017 Paper 1 Q6(f)
16. June 2016 · AS Paper 1 · Q6(c)
Mark scheme June 2016 Paper 1 Q6(c)
17. June 2016 · AS Paper 1 · Q6(e)
Mark scheme June 2016 Paper 1 Q6(e)