Edexcel A Level Economics Paper 1 (Micro) 2020 | Section A Walkthrough

Exam Technique Tutoring : https://forms.gle/owj1pwyGHyqTSjFZ9 Economics Group Chat : https://beacons.ai/udoecon About this video : This video is a full walkthrough of Section A from the Edexcel A Level Economics Paper 1 (Micro) 2020 exam. We go through each question step-by-step, focusing on how to answer the shorter micro questions clearly and pick up marks efficiently. Section A in this paper covers tax incidence, consumer and producer surplus, positive externalities, tradable pollution permits, costs and cost curves, and business growth. Questions in the video: 1(a) Draw a supply and demand diagram to show the incidence of a specific petrol tax on consumers and producers. 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? 2(a) Draw an externalities diagram to show the likely impact of the consumption of higher education. 2(b) On average, in the UK, a working-age graduate earns approximately £10 000 more per year than a non-graduate. This suggests a university degree provides a substantial: 3(a) Explain one likely effect of reducing the number of tradable pollution permits. 3(b) Regulation of firms that pollute is likely to be a problem because it: 4(a) Explain what happens to total cost at output levels greater than Z. 4(b) At output levels greater than Z, which one of the following correctly identifies what will happen to the cost? 4(c) For a luxury doughnut producer the average selling price is £2. The average variable cost is 40% of the selling price and its fixed cost per day is £300. Calculate total costs per day assuming it produces 400 doughnuts per day. 5(a) Explain one likely reason why this business has remained small. 5(b) Explain why the previous expansion of this business could be described as ‘organic growth’. 5(c) Assume ‘Bettys’ merges with a major tea leaf supplier. Which one of the following is most likely to be an advantage as a result of this merger? Timestamps: 00:00 Introduction & Tax Incidence 02:48 Elasticity and Surplus 07:55 Externalities in Education 12:44 Tradable Pollution Permits 17:36 Cost Curves Analysis 25:21 Business Objectives and Growth 27:53 Vertical Integration & Exam Tips Topics covered: Tax incidence, PED, Consumer surplus, Producer surplus, Positive externalities, Higher education, Tradable pollution permits, Regulation, Cost curves, Total cost, Organic growth, Vertical integration