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Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel
Level 3 GCE
Monday 20 May 2019
Morning (Time: 2 hours ) Paper Reference 9EC0/01
Economics A
Advanced
Paper 1: Markets and Business Behaviour
You do not need any other materials. Total Marks
Instructions
• Use black ink or ball-point pen.
• centrethe
Fill in boxes at the top of this page with your name,
number and candidate number.
• There are three sections in this question paper. Answer all questions from
Section A and Section B. Answer one question from Section C.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
• The total mark for this paper is 100.
• The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice
• Read each question carefully before you start to answer it.
• Check your answers if you have time at the end.
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
Some questions must be answered with a cross in a box . If you change your mind about an
answer, put a line through the box and then mark your new answer with a cross .
You are advised to spend 30 minutes on this section.
Use the data to support your answers where relevant. You may annotate and include
diagrams in your answers.
1 Between 2016 and 2017 the average price of new build houses in the UK rose by an
estimated 5.4%.
(a) With reference to the data provided, calculate the price elasticity of supply
for new house builds between 2016 and 2017. You are advised to show your
workings.
(2)
(b) A 2.5% increase in new build house prices in one region of the UK causes a 10%
increase in the number of houses built. Ceteris paribus, this suggests that supply
of new house builds is:
(1)
A perfectly price elastic
B perfectly price inelastic
C relatively price elastic
D relatively price inelastic
2
, (c) Explain one factor that is likely to determine the price elasticity of supply of new
house builds.
(2)
, AR=D
2 In August 2017 Hurricane Harvey caused the closure of nearly a quarter of the oil
production capacity in the United States. Quantity
(a) Draw a supply and demand diagramMR to show the likely microeconomic effects of
the hurricane on the US oil market.
(4)
4
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