Year 12s: what will be the first way you research your future options? >>

AQA Economics AS May 2015

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Reply 120

lewissteele

Original post by Nicole_Streakyy

Thankss, really helpful :smile:

Already found it helped me a lot in multiple choice questions

I'm so scared

Anyone else excited for this? I can't wait.

Reply 123

Schmitzel

Original post by Exceptional

Anyone else excited for this? I can't wait.

So long as I get my merit/demerit/positive/negative externality question.

Reply 124

lewissteele

The question is normally something topical. I have a feeling a question about plain cigarette packaging as the best way to reduce output in that industry may be a good bet.

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Reply 125

krippleman1

Original post by lewissteele

The question is normally something topical. I have a feeling a question about plain cigarette packaging as the best way to reduce output in that industry may be a good bet.

Posted from TSR Mobile

What would you talk about

Reply 126

username1308310

Hi, Does anyone know how to deal with the excess supply that is generated by minimum pricing on demerit goods (i.e. alcohol)?
As in:

Do firms export the excess supply? or do firms distribute it via black market? or do I just say that they deserve it because they were profiting from selling demerit goods?

Thanks

(edited 8 years ago)

Reply 127

BBeyond

Original post by TommyBrecon

Hi, Does anyone know how to deal with the excess supply that is generated by minimum pricing on demerit goods (i.e. alcohol)?
As in:

Price
l
l D /S
P_min l_____\__ /______
l \ /
P0 l \/
l /\
l / \
l______________________ QdQs
Q0

Do firms export the excess supply? or do firms distribute it via black market? or do I just say that they deserve it because they were profiting from selling demerit goods?

Thanks

The government normally has to buy up the excess supply when they set a minimum price law (known as intervention buying), then they dispose of it, which is a a waste of scarce resources and inefficient.

Reply 128

username1308310

Original post by BBeyond

Ah, that makes sense, thanks :smile:

Reply 129

lewissteele

Original post by krippleman1

What would you talk about

Basically draw on cigs being a demerit good.

Intro define demerit good talk about consumers not understand the negative externalities in terms of health care in later life

P1 Argue for plain packaging draw the negative consumption diag. Evaluate by saying its not really effective anyway due to the elasticities of cigarettes

P2 Say an alternative eg increase tax and evaluate that eg opp cost and govt failure

P3 draw on another point from extract