OCR F581 Markets in Action - 11 May 2015

And what about for the public good 6 marker?

I defined the two characteristics, explained how currently it would fit them but in the future - farmers buying land would legally make it theirs (excludable), and also when they use their bought land it would take away from the land that could be used for leisure, hence is was also rivalrous. So I determined that although it was a public good currently, it may not always be and could be a non-public good in the future dependent on how it is bought/used in the future.

6 marks?

Think it was more about whether open spaces currently were public goods

Posted from TSR Mobile

The 6 mark was explaining the PES figures then following 4 mark was basically determinants of PED.
The second question threw me a little, I shifted the supply curve but part of me was thinking whether or not to move both. The 18 marker was nice though, you could write a fair bit about how it depended on the cause of the market failure as evaluation, bringing in other intervention measures (eg taxation, regulation) which might be better suited to different types of market failure.

It asked whether they one in the case study would always be considered public good - or at least I though:|

4 bro

The term significantly implied that both should be shifted. Essay was indeed superb!

Posted from TSR Mobile

I shifted demand as it said in the question the demand for agricultural products has increased due to consumers wanting affordable energy. Biofuel is a product of agriculture and that can be argued. Plus it said that the supply was subsidised for agricultural crops. The 18 marker when talking about positive externalities you say that the substitute increases the production for positive consumption lowering the price so that more people will consume it and welfare gain with increase(in simple terms) as the price falls

If both shifted that's incorrect as unless supply or demand is inelastic there would be no change

If both shifted that's incorrect as unless supply or demand is inelastic there would be no change