Im getting really worried about my OCR as economics exam in Jan. Can someone help me on a few questions
1) How can regulations correct Market failure/ use of demerit goods
2) How can regulations actually encourage use of merit goods such as education e.g. make students go uni
There have been so many Price elasticity of demand and income elasticity of demand questions which they always ask " comment on the relevance of estimates to producers"... I know how to answer them but i think, this time there will be a "PRICE ELASTICITY OF SUPPLY/CROSS ELASTICITY OF USPPLY QUESTION"
3) COMMENT ON THE RELEVENCE OF ESTIMATES OF PRICE ELASTICITY OF SUPPLY TO PRODUCERS???
OOO ALSO WHAT DOES A REGULATION DIAGRAM EVEN LOOK LIKE?? DOES DEMAND SHIFT TO RIGHT/ SUPPLY LEFT?
Ocr as economics! Please help! Watch
- Thread Starter
- 28-12-2010 13:35
- 28-12-2010 13:41
ive completely forgotten everything in the first unit sorry once you get a hang of all the diagrams its fine so dont worry too much
- Thread Starter
- 28-12-2010 13:56
please... i reaaly need help
- 29-12-2010 17:42
How can regulations correct Market failure/ use of demerit goods.
- it will cause a shift to the left because you could regulate against consumption or supply of the good/service. eg its regulation that all cigarettes have to have a teddy sold with them. eg this would increase the cost to firms and reduce supply. or you could regulate that only people above 50 could buy theme reducing demand. ( the only examples i could think of)
How can regulations actually encourage use of merit goods such as education e.g. make students go uni.
- make it law that everyone has to go to university thus use of the good/service increases as demand rises.
COMMENT ON THE RELEVENCE OF ESTIMATES OF PRICE ELASTICITY OF SUPPLY TO PRODUCERS???
this will help them to decide what levels of stocks to accumulate. eg if the PES is very elastic then they may not stock up as much when anticipating a change in the price because they can respond quickly.
ALSO WHAT DOES A REGULATION DIAGRAM EVEN LOOK LIKE?? DOES DEMAND SHIFT TO RIGHT/ SUPPLY LEFT?
-And it depends on what the regulation is aiming to achieve. It could shift demand to the left or right. Generally though increases in regulation often increases costs of productions to firms and shifts supply to the left.
Dont shoot me if im wrong but i got an A last year and this is what springs to mind. read over your book again and ask your teacher. and also regulation/legislation ( i dont do politics so i assume they basically have the same effect. So i may be referring to one type but in the economics exam they dont care as long as they get the jift of what you mean regulation/legislation)
- 31-12-2010 04:33
3) also comment on the other side so how they are just estimates and not actual figures.