Please check the examination details below before entering your candidate
information
Candidate surname Other names
Centre Candidate
Number Number
Pearson Edexcel Level 3
GCE
Monday 15 May 2023
Morning (Time: 1 hour 30
minutes)
referenc
e
8EC0/01
Economics A
Advanced Subsidiary
PAPER 1: Introduction to Markets and Market
Failure
You do not need any other Total
materials. Marks
Instructions
•• Use black ink or ball-point pen.
Fill in the boxes at the top of this page with your
centre number and candidate number.
• There are two sections in this question paper.
•• Answer
name,
all questions in Section
In Section B, answer all of questions 6(a) to 6(e) and one question from 6(f)
• Answer
or 6(g). –the
A.
there may beinmore
questions space than you need.
the spaces
Information
provided
•• The total mark for this paper is 80.
The marks for each question are shown in
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
brackets
Advice
•• Read each question carefully before you start to answer it.
Check your answers if you have time at the
end.
Turn over
1
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
AREA
DO NOT WRITE IN THIS
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 25 minutes on this section.
Use the data to support your answers where relevant. You may annotate and
include diagrams in your answers.
1 In 2021, energy regulator Ofgem announced that the maximum price of energy
will rise from £ 1 277 to £ 1 971 a year, for the average household bill.
(Source: adapted from https://www.moneysavingexpert.com/
utilities/what-is-the-energy-price-cap/)
(a) Which one of the following is the percentage increase in the maximum
price to the average household bill?
(1)
A 35 %
AREA
DO NOT WRITE IN THIS
B 45 %
C 54 %
D 694 %
(b) Annotate the diagram below to show the original and new maximum
price in this market.
(2)
Average annual household bill (£)
S
AREA
DO NOT WRITE IN THIS
P1
D
0
Q1 Quantity of energy per household
2
, (c) Define the term ‘equilibrium
price’. (1)
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
DO NOT WRITE IN THIS
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
AREA
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. . . .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
(Total for Question 1 = 4 marks)
DO NOT WRITE IN THIS
AREA
DO NOT WRITE IN THIS
AREA
3
Turn
over
, 2 The world’s largest producer of natural gas is the USA. In 2021 production fell
even though the price increased.
AREA
DO NOT WRITE IN THIS
(a) Using the data provided, explain one likely factor that may influence the
price elasticity of supply of gas.
(3)
. .. .. .. .. .. .. .. .. .. ... . . .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ..................... .
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. . . .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. . . .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. . . ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
AREA
DO NOT WRITE IN THIS
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... . . .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
AREA
DO NOT WRITE IN THIS
4
information
Candidate surname Other names
Centre Candidate
Number Number
Pearson Edexcel Level 3
GCE
Monday 15 May 2023
Morning (Time: 1 hour 30
minutes)
referenc
e
8EC0/01
Economics A
Advanced Subsidiary
PAPER 1: Introduction to Markets and Market
Failure
You do not need any other Total
materials. Marks
Instructions
•• Use black ink or ball-point pen.
Fill in the boxes at the top of this page with your
centre number and candidate number.
• There are two sections in this question paper.
•• Answer
name,
all questions in Section
In Section B, answer all of questions 6(a) to 6(e) and one question from 6(f)
• Answer
or 6(g). –the
A.
there may beinmore
questions space than you need.
the spaces
Information
provided
•• The total mark for this paper is 80.
The marks for each question are shown in
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
brackets
Advice
•• Read each question carefully before you start to answer it.
Check your answers if you have time at the
end.
Turn over
1
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
AREA
DO NOT WRITE IN THIS
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 25 minutes on this section.
Use the data to support your answers where relevant. You may annotate and
include diagrams in your answers.
1 In 2021, energy regulator Ofgem announced that the maximum price of energy
will rise from £ 1 277 to £ 1 971 a year, for the average household bill.
(Source: adapted from https://www.moneysavingexpert.com/
utilities/what-is-the-energy-price-cap/)
(a) Which one of the following is the percentage increase in the maximum
price to the average household bill?
(1)
A 35 %
AREA
DO NOT WRITE IN THIS
B 45 %
C 54 %
D 694 %
(b) Annotate the diagram below to show the original and new maximum
price in this market.
(2)
Average annual household bill (£)
S
AREA
DO NOT WRITE IN THIS
P1
D
0
Q1 Quantity of energy per household
2
, (c) Define the term ‘equilibrium
price’. (1)
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
DO NOT WRITE IN THIS
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
AREA
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. . . .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
(Total for Question 1 = 4 marks)
DO NOT WRITE IN THIS
AREA
DO NOT WRITE IN THIS
AREA
3
Turn
over
, 2 The world’s largest producer of natural gas is the USA. In 2021 production fell
even though the price increased.
AREA
DO NOT WRITE IN THIS
(a) Using the data provided, explain one likely factor that may influence the
price elasticity of supply of gas.
(3)
. .. .. .. .. .. .. .. .. .. ... . . .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ..................... .
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. . . .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. . . .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. . . ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
AREA
DO NOT WRITE IN THIS
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... . . .. .. .. ... .. .. .. .. .. .. .. ..
. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. ... .. .. .. .. .. .. .. .. ......................
AREA
DO NOT WRITE IN THIS
4
