Memorsing content can only take you so far, so use exam questions effectively to prepare yourself for the actual exam. This document will help you do so, it contains a mix of exam style questions with extract/sources just like the real exam. The marks are for AS level but you can just as easily use...
3.4 Market Structures and
Contestability
(Edition 1)
Time: 60 minutes
Maximum marks: 50
Name
Centre Name
, Edexcel A Level Economics (A)
Unit Assessment – 3.4 Market Structures and
Contestability
Section A
ANSWER ALL THE QUESTIONS
1a In January 2018, Easyjet was offering the following prices for a one-way flight from London Gatwick
Airport to Faro in Portugal at around midday:
Date of flight Price
Tuesday 15 May £92.79
Saturday 4 August £298.82
The most likely explanation of this pricing strategy is:
A there is a difference in price elasticity of demand in May and August. o
B more spare capacity on flights in August than in May. o
C an expectation of better economic conditions in August. o
D different costs of flying planes in May and August. o
(1 mark)
1b British Sugar buys almost the entire sugar beet crop produced in the UK. This is an example of:
A monopoly power o
B producer surplus o
C price elasticity of supply o
D monopsony power o
(1 mark)
1c Yumm and Grillers are two restaurant chains operating in a duopoly, and their revenues (when they
sell set menus) are shown in the matrix below. Explain one reason why a collusive agreement
between them to price at £10 may break down.
Yumm set menu £7.50 Yumm set menu £10.00
Grillers set menu £7.50 Grillers earns £850,000
Both earn £500,000
Yumm earns £300,000
Grillers set menu £10.00 Grillers earns £300,000
Both earn £750,000
Yumm earns £850,000
(3 marks)
Page 2 Edexcel A Level Economics (A) Unit Assessment www.tutor2u.net/economics
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller EconomicsNoteAndExamQuestions. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.90. You're not tied to anything after your purchase.
