This series of clips is heartbreaking...but needs to be watched to understand what poverty is really like in the UK. Part one below...the rest to follow.
Thursday, 29 November 2012
Unit 1: Supply, Demand and Mitt Romney (Who?)
Here is a quick piece about market equilibrium as well as elasticity of supply and demand. Mitt Romney merchandise is now in the clearance section of stores with a 75% discount on the original price. Click here to see the original article.
Show how the loss of the election is likely to affect the market for Mitt Romney merchandise. You need to consider the following:
- the direction of the shift of demand (easy)
- the likely elasticity of supply
- the change in the elasticity of demand
Answer the above and draw a diagram shoing the new likely equilibrium.
I will post the answers after the break......
Show how the loss of the election is likely to affect the market for Mitt Romney merchandise. You need to consider the following:
- the direction of the shift of demand (easy)
- the likely elasticity of supply
- the change in the elasticity of demand
Answer the above and draw a diagram shoing the new likely equilibrium.
I will post the answers after the break......
Wednesday, 28 November 2012
Unit 1: Minimum Pricing on Alcohol
Ministers are proposing a minimum price of 45p a unit for the sale of alcohol in England and Wales as part of a drive to tackle problem drinking.
Click here to access the BBC article which poses many questions as to its effectiveness on problem drinking and the poor in society.
Questions to discuss:
Assess the effectiveness of this strategy on reducing the negative externality which is binge drinking.
Why might this be regarded as a from of 'Regressive taxation'?
What other methods could the government use to combat binge drinking?
Click here to access the BBC article which poses many questions as to its effectiveness on problem drinking and the poor in society.
Questions to discuss:
Assess the effectiveness of this strategy on reducing the negative externality which is binge drinking.
Why might this be regarded as a from of 'Regressive taxation'?
What other methods could the government use to combat binge drinking?
Monday, 26 November 2012
Unit 1: Market Failure
Click here to access several articles on all possible types of market failure with ideas on how to solve them. essential for Unit 1 questions.
Sunday, 18 November 2012
Unit 3: Price discrimination and unfair business practice!
This is a great video on how some businesses are using cookies on our computers to price discriminate. The technology allows them to reduce our consumer surplus and maximise their producer surplus.
For example the cookies allow a business to know whether the user is using a PC or an Apple Mac. If they are using the latter then they assume the user has more income and so increase the price slightly. There is no official proof yet, but the OFT are investigating.
No more shopping with the Ipad for me!
For example the cookies allow a business to know whether the user is using a PC or an Apple Mac. If they are using the latter then they assume the user has more income and so increase the price slightly. There is no official proof yet, but the OFT are investigating.
No more shopping with the Ipad for me!
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