In terms of the essay I had to rush it because I was running out of time but I basically got all my definitions in, a diagram showing supply curve shift right, quantity increase, price decrease - explained this diagram. Then linked to how an increase in output would be good for reducing positive externalities / less merit goods. Also how a decrease in price would make consumers want to spend more money so again effect on positive externalities. Then I talked about some consequences of using subsidies to reduce market failure as subsidies could be provided to insufficient firms so it would give them the incentive to keep producing inefficiently. Also talked about opportunity cost for government (2nd consequence) and third being how it depends of the size of the subsidy. After this I ran out of time so I didn't get to include my alternative +ves and -ves as well as conclusion.
Roughly how many marks do you think I'd scrape in the bag for this essay answer?
I spend too much time on 1st question lol