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    Was that option A?
    (Original post by Pussy King)
    Labour decreasing at a faster rate then output falls.
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    I think so, can't remember for sure though.
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    I did the exact same thing! I talked about the market failure then how regulation is good and bad then said how it could be left to the market. And then I did say one sentence about how indirect tax or closing the information gap could be used. But not much, I read it the same way as you.
    (Original post by Kaasi)
    Also, do you think if I analysed the market failure (thoroughly), talk about the free market + evaluation and talk about regulation (increase minimum age to be able to smoke), will I be capped at a grade boundary for not talking about tax? The question explicitly talk about whether or not the government should regulate, so in my point of view, the tax policy is only just an extra thing you can add to accumlate marks...

    Am I wrong?
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    For context 2, 25 marker, were you supposed to talk about the free market or just evaluate the different possible policies (I did regulation and tax)
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    (Original post by hbaig27)
    For context 2, 25 marker, were you supposed to talk about the free market or just evaluate the different possible policies (I did regulation and tax)
    You were meant to evaluate regulation as a policy, and then maybe include some other alternative policies
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    I messed up on the 10 marker for context two big time.
    I shifted the demand curve instead and said the tax would reduce demand for cigarettes because I'm stupid but i valid points about the elasticity of the demand curve due to addictive properties and explained the diagram also adding relevant application and definitions.
    So will I get awarded 0 marks for this error as it is annoying me
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    (Original post by KishanPatel99)
    I messed up on the 10 marker for context two big time.
    I shifted the demand curve instead and said the tax would reduce demand for cigarettes because I'm stupid but i valid points about the elasticity of the demand curve due to addictive properties and explained the diagram also adding relevant application and definitions.
    So will I get awarded 0 marks for this error as it is annoying me
    I'm pretty sure you'll still get marks
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    I just did regulation and free market. Is that right?
    (Original post by sharmonraja)
    You were meant to evaluate regulation as a policy, and then maybe include some other alternative policies
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    What did everyone put for the last multiple choice answer?


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    (Original post by DaisyLover15)
    I just did regulation and free market. Is that right?
    I f****** hope so. BTW GUYS, the MCQ about costs, did you say move the curve downwards?
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    Yeah your fine, the crux is in the detail it said 'Best Policy', so it was not ambiguous, talk for and against regulation, then an alternative

    My structure:
    What is market failure? Cigarettes? Externalities, demerit goods (link to extract where it mentions, 5000 Deaths and costs on babies) (Diagram: Demerit good)
    Why reg good? Makes it taboo, reduces demand, discourages kids. Revenue collected can be used to subsidies E-Cigs( which dont have litter externality)/Nicotine/smoking aids or give those £400 vouchers as mentioned (Diagram: Reduce Demand)

    Bad? Demand inelastic so not effective enough, How much regulation is too much or too little? Too little, no incentive to stop smoking. Too much, cigarette firms could cut back on workers adding to unemployment etc Does regulation depend on who it's provided for "under 18's' would be stopped, but what about the elder generation? Pregnant mothers?

    Offered an alternative

    Tax: Why it works, reduces supply, and demand, collects revenue which could be hypothecated elsewhere in economy, i.e smoking aid/helping to enforce regulation, reduces consumption a lot (Extract E has lots of data showing higher prices have reduced consumption) (Diagram reduce supply)

    Bad? Black market, demand inelastic, regressive, firms go abroad to cheaper destinations

    Overall: Complex problem, requires a combination of policies, there is no 'one best policy' as phrased by the question. In the short run more reg to prevent consumption in younger generations, long run more taxes and compulsory labelling which reduces elasticity, helps reach better allocative efficiency, covers the externalities and market failure.

    Tbh, if they solely wanted you to focus on reg, they would not fill up the rest of the sources with tax/Black market/Minumum prices/ also they gave you two diagrams to draw previously ie the tax and voucher, so basically it was foreshadowing your answer, they gave you what you had to do
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    It technically didn't explicitly say that thought :/ but I did mention indirect tax for like one sentence. I throughly evaluated my other points though. What mark would I be likely to get?
    (Original post by DaisyLover15)
    I just did regulation and free market. Is that right?
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    Context 2 - 10 marker

    D shift left due to indirect tax is this correct?? And it will reduce demand for cigarettes but depends on PED
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    (Original post by joebackhouse)
    Law of Demand lmao
    Wait.. for that MPC, is the answer 'all factors remain constant' or the other option?
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    (Original post by whi03)
    Context 2 - 10 marker

    D shift left due to indirect tax is this correct?? And it will reduce demand for cigarettes but depends on PED
    nah- indirect tax it said thus it would be a fall in supply but then yes you can talk about elasticity.
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    Don't get confused.

    Does not matter if demand curve goes down or up. (Law of demand/Veblen) both are drawn on the same assumption.

    Think Ceteris paribus; Only price changes, all other factors are constant.

    Answer D!
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    What was the diagram question in context 2?? Was it just a demand shift to the left?
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    (Original post by Reaver Daniels)
    I put either £6.28 pence or £6.29 pence. Doesn't matter either way really. Only 1 mark.


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    Yes I got £6.29
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    could you show the rise in indirect tax by just showing a movement along the demand curve and how demand falls as price rises?
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    Also for the LRAC graph question where you had to show what graph would gain monpoly power, what was the answer?
 
 
 
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