Hi was just wondering if these were okay points or if I ventured to far off or if the points were irrelevant.
15 marker intervention
1. Max price - price too high for consumers - govt intervene to lower prices - excess demand
eval - magnitude of max price imposed - larger decrease = higher value of excess demand
2. Subsidies - increase subsidies to lower costs/push supply curve out - demand and supply diagram - fall in price increase in output/revenue
eval - firms willingness to use subsidies to reduce costs of production or to innovate by R&D for long-run benefits
25 marker wage rates
1. Government intervention - min/max price - min price for low paid workers to and max price for high paid workers (e.g. cashiers and managers) to reduce income inequality
eval - magnitude of min price imposed - value of excess supply/increase in unemployment levels
2. Elasticity of demand - more skilled workers = inelastic, vice versa
eval - can't really remember
3. Discrimination - age, gender, race, religion
eval - discrimination is illegal but hard to determine whether one has been rejected due to lack of skills/qualifications or due to discrimination