AQA AS Economics May 14th [Exam Discussion]Watch
I argued that food is an inelastic good that is necessary, so people will pay for it anyway. I also said intervention bares the risk of government failure with high financial costs which could affect other markets (opportunity cost). For my however, I said there is an equity issue, as the good helps people and improves economic welfare.
the rest of it i waffled i was talked about the negative externalities associated with the production, but then i said it would lead to government failure because taxing the firms negative externalities would mean a reduction in the produce of agricultural goods, depends on a value judgement made by the government
i talked about how organic food is a merit good???? idek why i talked about that i did so badly i think i literally got 10
Sounds like you know your stuff. What was the question asking u to do? And do u know what the other 25 marker was about?
I did the free market paragraph that if it’s let in their hands we would have a missing market and stuff but I didn’t conclude anything.