Paper 1: Markets and how they work · 9EB0/01

Edexcel B A-level Paper 1, June 2017

All 10 written questions from Edexcel B A-level Paper 1 (June 2017), Markets and how they work. Case studies: Bright future for coffee shops, Trends and Fluctuations in fuel prices and Banking Regulations and fines. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme Examiner report

Section A

Case study

Bright future for coffee shops

Extracts: A: Bright future for coffee shops · B: Leading 10 coffee shop chains ranked by number of outlets in the UK in 2014 · C: Tea, Coffee, Work and Play. Reimagined · D: Wholesale Coffee prices, US cents per pound of coffee, October 2014

In the extracts: Coffee, Timberyard, London, Costa, Caff, Nero, Starbucks Coffee Company, Promedia Publishing Ltd, Best Independent Coffee, European Coffee Awards

Q1(a)Calculate4 marks

Using Extract A, calculate to 2 decimal places the operating profit margin for Costa for 2014. You are advised to show your working.

Mark splitKnowledge 1Application 3

TopicRevenue, costs, profits and cash

Question paper p.5 Mark scheme p.4 Examiner report p.4 Open in the tool

Q1(b)Calculate4 marks

Using Extract D, calculate to 2 decimal places the percentage change in the coffee price from October 2014 to September 2015. You are advised to show your working.

Mark splitKnowledge 1Application 3

Question paper p.6 Mark scheme p.4 Examiner report p.5 Open in the tool

Q1(c)Illustrate4 marks

Using a supply and demand diagram, illustrate the impact on the coffee shop market of the change in taste and fashion. (Extracts A and C)

Mark splitKnowledge 2Application 1Analysis 1

TopicIntroducing the market

Question paper p.7 Mark scheme p.5 Examiner report p.6 Open in the tool Draw it: supply and demand diagram

Q1(d)Analyse6 marks

Costa Coffee, Starbucks Coffee Company and Caffè Nero are the UK’s leading coffee shop chains. (Extract B) Analyse one possible impact of the market structure on the pricing strategy of these firms.

Mark splitKnowledge 2Application 2Analysis 2

TopicCompetition and market power

Question paper p.8 Mark scheme p.6 Examiner report p.7 Open in the tool

Q1(e)Discuss8 marks

Discuss whether market share is the most important business objective to a coffee shop chain, such as Timberyard.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicEnterprise, business and the economyIntroducing the market

Question paper p.9 Mark scheme p.7 Examiner report p.9 Open in the tool

Q1(f)Assess10 marks

Extract D shows a fall in the wholesale price of coffee during 2015. Assess the impact this might have on prices charged in coffee shops.

Mark splitKnowledge 2Application 2Analysis 3Evaluation 3

TopicIntroducing the market

Question paper p.10 Mark scheme p.9 Examiner report p.11 Open in the tool

Q1(g)Assess12 marks

Assess the importance of non-price competition in the UK coffee market.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicCompetition and market power

Question paper p.12 Mark scheme p.11 Examiner report p.13 Open in the tool

Q1(h)Assess12 marks

Assess whether the UK coffee shop market could be considered contestable.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicCompetition and market power

Question paper p.14 Mark scheme p.13 Examiner report p.15 Open in the tool

Section B

Case study

Trends and Fluctuations in fuel prices

Extracts: E: Trends and Fluctuations in fuel prices

In the extracts: Sept, US Dollars, Crude, Trends and Fluctuations, Telegraph Media Group, Premium Unleaded Sept, Industry The UK, BP and Shell, Middle East, Diesel Jan

Q2Evaluate20 marks

Using Extract E, evaluate the likely impact of falling crude oil prices on the UK economy.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicIntroducing the marketCompetition and market power

Question paper p.18 Mark scheme p.15 Examiner report p.17 Open in the tool

Section C

Case study

Banking Regulations and fines

Extracts: F: Banking Regulations and fines · G: Too big to fail

In the extracts: FCA, National Westminster Bank, Compliancy Services Ltd, Royal Bank of Scotland, Banking Regulations, Financial Conduct, Ulster Bank Ltd, Lehman Brothers, Authority, Europe

Q3Evaluate20 marks

Evaluate the likely impact on the UK of increased regulation of the UK banking industry.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicMarket power and market failure

Question paper p.22 Mark scheme p.17 Examiner report p.20 Open in the tool

Question text is quoted from the question papers, © Pearson Edexcel, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.

Section A

Bright future for coffee shops

Section B

Trends and Fluctuations in fuel prices

Section C

Banking Regulations and fines

Other years of Edexcel B A-level Paper 1

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