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The following graph shows the global sales of personal computers (PCs) between 2011 and 2015 - Edexcel - A-Level Economics A - Question 5 - 2018 - Paper 1
Question 5
The following graph shows the global sales of personal computers (PCs) between 2011 and 2015. (a) The percentage decrease in sales of PCs between 2011 and 2015 is: ... show full transcript
Worked Solution & Example Answer:The following graph shows the global sales of personal computers (PCs) between 2011 and 2015 - Edexcel - A-Level Economics A - Question 5 - 2018 - Paper 1
Step 1
The percentage decrease in sales of PCs between 2011 and 2015 is:
Answer
To calculate the percentage decrease in sales of PCs from 2011 to 2015, we use the formula:
ext{Percentage Decrease} = rac{ ext{Initial Value} - ext{Final Value}}{ ext{Initial Value}} imes 100Where the initial value for 2011 is 352.4 million and the final value for 2015 is 276.7 million.
ext{Percentage Decrease} = rac{352.4 - 276.7}{352.4} imes 100 = 21.5\%Thus, the correct answer is A) 21.5%.
Step 2
Explain one likely reason for the decrease in sales of PCs.
Answer
One likely reason for the decrease in sales of PCs is the development of substitutes such as tablets and smartphones. These devices often serve similar functions to PCs but are more portable and user-friendly. The convenience and advanced technology offered by these substitutes can lead consumers to prefer them over traditional PCs.
Step 3
Calculate the five-firm concentration ratio.
Answer
To calculate the five-firm concentration ratio, we sum the sales of the top five companies:
- Lenovo: 57.182 million
- HP: 53.534 million
- Dell: 39.049 million
- Apple: 20.794 million
- Acer Group: 16.308 million
Total sales of top five companies:
Next, the concentration ratio is calculated as:
ext{Concentration Ratio} = rac{ ext{Sales of Top 5 Firms}}{ ext{Total Sales}} imes 100Substituting the values in:
ext{Concentration Ratio} = rac{186.867}{276} imes 100 \\ ext{ } = 67.6\%The five-firm concentration ratio is therefore 68.0% when rounded to one decimal place.