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3a:T41b,### The UK EV Ultra-Rapid Charging Market ### Figure 1: Market share of the six largest ultra-rapid charging network providers in the UK, by active chargers, 2024 | Provider | Market Share (%) | |---|---| | Gridserve | 28% | | InstaVolt | 22% | | Osprey Charging | 15% | | VoltStream | 12% | | bp pulse | 11% | | Ionity | 8% | ### Figure 2: Osprey Charging peak-time tariffs at highway hub locations #### Tariff before VoltStream ceased operations Peak rate session (12:00 to 19:00) - CCS Ultra-Rapid Connection (up to 150 kW) - Contactless or App payment - Fixed network access fee included - 24/7 Helpline Support Peak-time tariff: **64p** per kWh Average cost for a 50 kWh charge: **£32.00** #### Tariff 24 hours after VoltStream ceased operations Peak rate session (12:00 to 19:00) - CCS Ultra-Rapid Connection (up to 150 kW) - Contactless or App payment - Fixed network access fee included - 24/7 Helpline Support Peak-time tariff: **72p** per kWh Average cost for a 50 kWh charge: **£36.00** *Data accessed: 12th and 13th October 2024*3b:T6f7,- Explains the concepts of market supply shift and price determination under competitive conditions B1 - Identifies oligopolistic interdependence and dynamic pricing structures in utility/charging markets B1 - Demonstrates understanding of short-run price elasticity of demand (PED) for stranded consumers B1 - Explains how peak-time capacity constraints require price-rationing mechanisms B1 - Uses Figure 1 to identify VoltStream's 12% market share and Osprey's 15% position A1 - Calculates the percentage increase in the peak tariff as 12.5% (or an 8p per kWh increase) A1 - Calculates the absolute monetary increase for an average 50 kWh session as £4.00 A1 - Applies the data to show a sudden contraction in market supply of 12 percentage points due to VoltStream's exit A1 - Analytically links the market supply contraction to a rightward shift in Osprey's demand curve ($D_1$ to $D_2$) M1 - Analyses how inelastic short-run demand allows Osprey to increase total revenue ($TR = P \times Q$) M1 - Analyses the role of automated dynamic pricing in rationing limited physical charging bays to manage queues M1 - Analyses the short-run versus long-run profit-maximising incentives of the firm M1 - Evaluates the threat of brand/reputational damage or accusations of opportunistic "price gouging" C1 - Evaluates potential regulatory interventions (e.g., Competition and Markets Authority or Ofgem scrutiny) C1 - Evaluates competitive reactions from larger rivals like Gridserve (28%) or InstaVolt (22%) who might undercut Osprey to capture market share C13c:T7c3,- Labels axes correctly with Price ($P$) and Quantity ($Q$) B1 - Draws a downward-sloping Demand curve ($D$) and an upward-sloping Supply curve ($S$) B1 - Illustrates a rightward shift in the demand curve from $D_1$ to $D_2$ M1 - Illustrates a leftward shift in the supply curve from $S_1$ to $S_2$ M1 - Shows a clear increase in equilibrium price from $P_1$ to $P_2$ A1 - Identifies and explains how a rise in dual-income households increases the market demand for childcare M1 - Explains how expansions in government childcare subsidies or funded hours boost consumer demand A1 - Analyzes the relationship between rising disposable incomes and the demand for early-years education (income elasticity of demand) A1 - Identifies and explains labor cost pressures, such as increases in the national minimum wage or living wage, which shift supply to the left M1 - Explains how strict regulatory staff-to-child ratios limit supply capacity and increase operational costs A1 - Explains how other rising overheads (e.g., rent, energy bills, and food costs) increase the marginal cost of provision A1 - Evaluates whether demand-side pressures or supply-side cost increases are the dominant driver of rising fees M1 - Discusses how the price elasticity of demand (PED) for nursery places is highly inelastic for working parents, allowing nurseries to pass cost increases onto consumers A1 - Contrasts short-run capacity constraints (inelastic supply) with long-run supply adjustments as new nurseries open A1 - Concludes with a reasoned judgment on the overall significance of these factors in determining the market price of childcare C1 ### Model Diagram ![Supply and Demand Diagram](https://assets.mathsgenie.co.uk/aqa-qb/157435e6-995d-4104-b8fa-ff1e94376708.png)3d:T93b,- Defines or explains dynamic pricing or market price determination in response to supply/demand shocks B1 - Identifies features of an oligopoly present in this scenario, such as high concentration and market interdependence B1 - Explains the economic theory where a supply contraction (due to a competitor's exit) leads to excess demand, pushing up market prices B1 - Explains how short-run demand becomes relatively price-inelastic when substitute options decrease B1 - Applies Figure 1 data to show that Apex Studios' exit removes $10\%$ of market supply, causing a significant supply shock M1 - Applies Figure 1 data to show PulseFit's position as the third-largest provider with a $16\%$ market share, well-positioned to absorb displaced members M1 - Calculates the absolute price increase of $£20$ and percentage price increase of approximately $13.79\%$ (or $13.8\%$) from Figure 2 A1 - Connects the price change to the context of high-end fitness clubs, where members of the collapsed gym seek immediate alternative facilities A1 - Analyses how shifting demand to PulseFit ($D_1$ to $D_2$) under inelastic short-run conditions allows the firm to increase total revenue ($TR = P \times Q$) and operating profit margins M1 - Analyses how the price increase serves as a rationing mechanism to manage fixed capacity (e.g., class sizes and studio space) in premium boutique gyms M1 - Analyses the speed of the adjustment (48 hours) as evidence of dynamic pricing algorithms or rapid managerial decisions reacting to a surge in booking traffic A1 - Analyses how the increased revenue could be used strategically to acquire former Apex locations or expand capacity A1 - Evaluates the risk of long-term reputational damage, as consumers may view a $13.8\%$ increase right after a competitor's collapse as opportunistic "price gouging" M1 - Evaluates competitor responses, noting that larger rivals like Sweat & Co ($27\%$) or CorePower ($23\%$) might keep prices stable to gain more market share at PulseFit's expense M1 - Concludes by balancing short-run revenue/capacity benefits against long-term brand equity and competitive risks A125:["$","$L34",null,{"bundle":{"topicIds":["3d6a2c38-a238-52c5-a495-cb90acac9c60"],"paperIds":[],"stageIds":[],"stageTopicIds":[],"stageAssessmentIds":[],"topicNoteIds":["f9a604e3-bcc2-41e9-965a-d85a2179d198"]},"children":[["$","$L35",null,{"feature":"question-bank"}],"$L36",["$","$L37",null,{"subjectCode":"a_level_economics__edexcel_a","subjectName":"Economics","topicSlug":"price-determination","topicTitle":"1.2.6 Price 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tariffs.","markscheme":"$3b","marks":15,"order":0,"markingRubric":null,"tableImages":[],"explanation":null,"options":[]}],"options":[],"explanation":null,"firstAttemptFullMarks":null,"walkthroughVideo":null},{"id":"c41db1ac-96b8-4f64-8319-e8336d8553c8","revisionId":"916929ef-2040-498b-a9c7-fe658309a36a","questionNumber":null,"questionType":"LA","specification":"","difficultyBand":"hard","tier":null,"totalMarks":15,"sourceTitle":null,"calculatorUse":null,"isCalculation":false,"parts":[{"id":"ec0b9d3f-d6d8-44e7-a740-ac5a7c1d352d","label":null,"content":"Discuss likely reasons why the fees for places at private day nurseries (childcare) are increasing. Draw a supply and demand diagram to support your answer.","markscheme":"$3c","marks":15,"order":0,"markingRubric":null,"tableImages":[],"explanation":null,"options":[]}],"options":[],"explanation":null,"firstAttemptFullMarks":null,"walkthroughVideo":null},{"id":"fcbac0dd-bb81-43e7-b0c0-93c2f906ba77","revisionId":"809de867-1293-4927-8d76-c651c4ff7636","questionNumber":null,"questionType":"LA","specification":"### The London Premium Boutique Fitness Market\n\n### Figure 1: Premium boutique fitness club market share in London, by active memberships, 2023\n\n| Provider | Market Share (%) |\n|---|---|\n| Sweat & Co | 27% |\n| CorePower | 23% |\n| PulseFit | 16% |\n| Apex Studios | 10% |\n| Vibe Cycle | 9% |\n| FitZone | 7% |\n\n### Figure 2: PulseFit Elite Monthly Unlimited Membership prices\n\n#### Price before Apex Studios ceased trading\n- Unlimited access to all 12 London studios\n- Complimentary towel service and premium toiletries\n- 10-day priority booking window\n- 1 guest pass per month\n\nMonthly price: **£145**\n\n#### Price 48 hours after Apex Studios ceased trading\n- Unlimited access to all 12 London studios\n- Complimentary towel service and premium toiletries\n- 10-day priority booking window\n- 1 guest pass per month\n\nMonthly price: **£165**\n\n*Data accessed: 4th and 6th October 2023*","difficultyBand":"hard","tier":null,"totalMarks":15,"sourceTitle":null,"calculatorUse":null,"isCalculation":false,"parts":[{"id":"f90e30fb-4a1d-486c-8cd9-32294e60877b","label":null,"content":"With reference to the information provided, discuss the decision by PulseFit to increase its membership 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1.2.6 Price determination

Question 7

1.2.6 Price determination Questions

1.2.6 Price determination

Question 7

1.2.6 Price determination Questions