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1.3 Price determination in a competitive market

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Question 12

Extract A

Table 1: UK registrations of passenger vehicles by propulsion technology, 2021 and 2022

Technology20212022
Pure Diesel (ICE)150 00095 000
Pure Petrol (ICE)480 000390 000
Battery Electric Vehicles (BEVs)†85 000175 000
Plug-in Hybrid Electric Vehicles (PHEVs)†125 000195 000
Total840 000855 000

† BEVs and PHEVs use high-capacity lithium-ion cells with synthetic graphite anodes.

Figure 1: UK demand for high-purity synthetic graphite, thousand tonnes, 2018 to 2032

YearSteel electrodesLubricantsMetallurgyNuclearEV BatteriesTotal
2018901010100120
202210010101050180
2027 (estimate)110202020380550
2032 (estimate)12030303011901400

Explain how the data in Extract A (Table 1 and Figure 1) show that developments in the passenger vehicle market are the main reason for the changing demand for high-purity synthetic graphite in the UK.

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1.3 Price determination in a competitive market Questions

  1. A Level
  2. /Economics
  3. /1.3 Price determination in a competitive market