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Edexcel Economics AS Unit 1: Competitive Markets ­ How they work and Why they Fail Revision notes
Along the PPF Society can move along the PPF. Consumer goods = Capital goods
For the frontier to be straight the two goods have to have a prefect trade off. They do not have to have a
1:1 ratio but an equivalent.
Shows the maximum combination of revision hours e.g. 5 hours history
0 economics
$ = Outside of the Frontier ­ requires a change e.g.…read more

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Edexcel Economics AS Unit 1: Competitive Markets ­ How they work and Why they Fail Revision notes
2. Resources unused
3. Inefficient use of resources or services
Inward shift ­ The PPF can shift inwards to indicate a decrease in productive capacity.
1. Decrease in resources =
i) fall in population e.g., migration or lower birth rate
ii) Destruction of infrastructure e.g.…read more

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Edexcel Economics AS Unit 1: Competitive Markets ­ How they work and Why they Fail Revision notes
sector is greater while in North America (U.S.A and Canada) it is lower.…read more

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Edexcel Economics AS Unit 1: Competitive Markets ­ How they work and Why they Fail Revision notes
materials or minerals used in the production of goods and services e.g. wheat, sugar, gold and oil
iii) A labour market refers to the buying and selling of labour time for the production of goods and
services e.g. plumbers, teachers and accounts.
Downward sloping demand curve
Demand = the amount of goods and services that consumers are selling and able to purchase at a
specific price.…read more

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Edexcel Economics AS Unit 1: Competitive Markets ­ How they work and Why they Fail Revision notes
Price, Income and Cross Elasticities of Demand (PED, YED and XED)
Pric
e
Elas
ticit
y of
De
man
d >
P ED =
Demand Value of Example of a What effect Change in Total Change in Total
Curve PED good does a Revenue due to a Revenue due to a
change in price price
price have?
[in words]
Perfe PED= Perfect Any change
ctly substitute in price…read more

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Edexcel Economics AS Unit 1: Competitive Markets ­ How they work and Why they Fail Revision notes
change in
price.
%Qd < %P
Perfe PED= 0 No The
ctly substitutes percentage
Inelas change in
tic quantity is
not affected
by the
change in
price.
Determinants of PED:
1. Availability of substitutes ­ More substitutes available = more elastic demand as consumers can
switch to another substitute if the Price increases
2.…read more

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Comments

Natalie

Hey these notes are really good thanks so much. But did you recently change them?


davidsalter

This is a superb set of notes covering all of the Edexcel unit specification. Students can use it to revise particular parts or all of it or use it to create their own revision resources.

Aysha Khan

very good! although it could be alittle more condensed!

هزل, يتبادل المزاح

follow @ben_ stott00 on twitter for eggy naans

Follow for an follow

Tosadiya

These are excellent revision notes for unit 1 - many thanks.

Pabodha Marambe

great help to my studies

thankz

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