F581/ F582 Economics June 2013

erm... the question we are on about ( the demand and supply diagram one ) had absolutely NOTHING to do with sun beds or tan accelerator products. Or negative externalities , or consumer surplus.

I only shifted demand for the D+S question, reason being is I'm pretty sure the question specified the foreign holiday market. But it did putdemand and supply, so I don't really know.

Anyone else find a use for those PED values? (so much for calculating elasticties)

question specified demand and supply im certain - i ended up shifting both anyway , although anything could be right here - some people only shifted supply , some only shifted demand , some shifted both - who knows !

nah pretty sure they were irrelevant haha - well i didn't use them anyway

Well I hope I haven't lost too many marks, losing them on a D+S diagram is the worst. It did put "and" in bold so you're probably right.

And no Jan exams so retaking is a bit of a problem.

Overall, macro was easier imo

Why did everyone move the supply and demand curve when it only mentioned demand of holidays decreasing and supply of filghts also decreasing. The question was about holidays and supply of flights is not the same as supply of holidays right?

how do you go on holiday to a foreign country without a plane ?

A ship? A train(Eurostar)?

i meant in the case study - since that question was referring to the demand and supply of the foreign holiday market - since the supply of flights had decreased , the overall supply of foreign holidays will have decreased.. there was no mention whatsoever of an alternative BUT you could have mentioned that in a comment now that i think about it

Alright thanks. Will I get any marks though?

the question was regarding sun beds and tan allc not aero planes so no. uare r all wrong btw if its negative extr then the supply ONLY shifts to the left because of over production
demand decreasing because of consumer surplus noting else there a reason why they split the case study into 2.

can;t say for definite i'm afraid - and it's probably best that i don't comment as im not really in a position to

Yh I understand

Yes?

Can someone who's confident please evaluate my essay question?

It asked about whether regulation was the best method of fixing market failure associated with information failure.

I started off with definitions of market and information failure and went on to say I was using tanning beds as an example of information failure (from case study). I then said that for regulation the government could pass a law forcing firms to provide information regarding the risks of using sunbeds to all potential customers before they use the beds. I then weighed up the good points of this before saying how it would be tricky and costly to enforce and firms might well just ignore the law depending on the severity of the pentaltly, and also how it was ineffective as most people have made up their minds as to whether they're using them before the leave for the salon. I then offered information provision as an alternative, suggesting a televised ad campaign as an option. I said positives were that it could be targeted (by airing it at certain times on certain channels), unbiased as the info was from the gov. and as the information would be provided before the potential consumer had decided to use them. Also you know it will be aired, as in unlike the salons, you know that this information will be provided. For negatives I added that it is costly and the information would only be provided for as long as the ad campaign was aired for. I then summed up that information provision was the better option, stating reasons and generally summing up.


WOULD THIS BE GOOD FOR MY ESSAY? WAS MY REGULATION OPTION GOOD?

PLEASE SOMEONE READ THIS, I'M SO WORRIED.

I analysed the regulation applied in the case study. Which was banning under 18s from using sunbeds. Will I still be okay?


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For the 18 marker question, I just applied the information failure and regulation to the case study (sun beds) which were mentioned in the last paragraph.

Used indirect taxation as an alternative as it internalises the external costs associated with the negative externality.

yeah +16% for holidays UK
and -20% for foreign holidays