OCR Economics Synoptic 2888 June 09 - YOUR GAME PLAN?!

so the demand curve (where mpb=msb) would shift in?

in a normal negative externality diagram with the deadweight loss, you draw another supply curve between s1 (mpc) and s2 (msc). and then this will cut through and reduce the deadweight welfare loss.

in a normal negative externality diagram with the deadweight loss, you draw another supply curve between s1 (mpc) and s2 (msc). and then this will cut through and reduce the deadweight welfare loss.

nope sorry. i think it is in the tutor2u tool kit otherwise ill send it you tomorrow if scanner works.

Do you mean like in transport (2885) when the government impose a road user charge (pricing) so as to make the user pay for the negative externalities they are causing.

yeah, exactly that

I hate OCR.

Confident?

If I manage to sort biofuels I reckon the exam will be nice and easy.

What about if the first 6 marks, were one markers, e.g. "which treaty was signed in 1957?"

Sweet. I keep telling myself: "the whole point of them giving us a case-study is that they'll ask us questions about it"...let's just bloody hope they do.

What's the issue with biofuels at the moment??

What about if the first 6 marks, were one markers, e.g. "which treaty was signed in 1957?"

Are you talking about this diagram, and then shifting in PMC:
http://www.thestudentroom.co.uk/showthread.php?t=918908

I wish I did Transport now

shift in mpc to the left, not to the right

where does the subsidy come into this? im confused about it now ill have to ask someone else.

With question 2 on the tutor2u mock, do you just draw a normal supply and demand diagram with supply shifting in? and how many/what explanations do you give?

Thanks, but why does PMC shift to the right? Is it because biofuels means less emitting of CO2 in the atmosphere so MPC lowers because of the subsidy?