AQA A-LEVEL ECONOMICS PAPER 3 QUESTIONS AND ANSWERS PATER 2023

AQA A-LEVEL ECONOMICS PAPER 3 QUESTIONS AND ANSWERS PATER 2023 What does the determinants of demand refer to? - CORRECT ANSWER- the facotrs that influence the quantity of a good or service that consumers are willing to purchase at different prices, during different periods of time What are the determinants of demand? - CORRECT ANSWER- Income, Price of related goods, A good's own price,Tastes and preferences, Number of consumers What does the determinants of price refer to? - CORRECT ANSWER- the factors that influence the market price of goods and services. What are the determinants of price? - CORRECT ANSWER- Supply and demand, production costs, market structure, competition, elasticity of demand and supply What is the market mechanism? - CORRECT ANSWER- the means by which decisions regarding the production, distribution, and consumption of goods and services are made in a market-oriented economy. The key components of the market mechanism - CORRECT ANSWER- -Buyers and sellers -Prices -Supply and demand -Equilibrium What is elasticity? - CORRECT ANSWER- measures how responsive one variable is to changes in another variable. (percentage change in one variable in response to a one percent change in another variable) price elasticity of demand (PED) - CORRECT ANSWER- a measure of how much the quantity demanded of a good responds to a change in the price of that good price elasticity of demand formula - CORRECT ANSWER- % change in quantity demanded / % change in price income elasticity of demand (YED) - CORRECT ANSWER- a measure of how much the quantity demanded of a good responds to a change in consumers' income Income elasticity of demand formula - CORRECT ANSWER- % change in quantity demanded / % change in income cross-price elasticity of demand (XED) - CORRECT ANSWER- a measure of how much the quantity demanded of one good responds to a change in the price of another good cross-price elasticity of demand formula - CORRECT ANSWER- % change in quantity of A demanded / % change in price of B