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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 first find the sales figures for those years:
- Sales in 2011: 352.4 million
- Sales in 2015: 276.7 million
Now, we can find the difference in sales:
Next, we calculate the percentage decrease:
ext{Percentage Decrease} = rac{ ext{Difference}}{ ext{Sales in 2011}} imes 100 = rac{75.7}{352.4} imes 100 \\ ext{= } 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 or smartphones. These devices often provide similar functionalities and are more portable, making them more appealing to consumers. As technology continues to advance, people are more inclined to use these alternatives for their computing needs instead of traditional PCs.
Step 3
Calculate the five-firm concentration ratio.
Answer
The five-firm concentration ratio can be calculated by finding the total sales of the top five companies listed:
- Lenovo: 57.182 million
- HP: 53.534 million
- Dell: 39.049 million
- Apple: 20.794 million
- Acer Group: 18.81 million
Total sales of top five firms:
Now, to calculate the concentration ratio:
ext{Concentration Ratio} = rac{ ext{Total Sales of Top 5 Firms}}{ ext{Total Sales}} imes 100 = rac{189.369}{276.7} imes 100 \\ ext{= } 68.4\%Therefore, the five-firm concentration ratio is approximately 68.4%.