Unit 1: Elasticity in the tablet computer market

An interesting clip from the BBC on competition in the tablet computer market

http://www.bbc.co.uk/news/technology-11665362

a) Explain why all of these products would not have the same PED value
b) Which would have the most inelasic demand? Why?
c) Would the income elasticity of demand for these products be positive or negative? Why?
d) How could you use the concept of cross ED in this market?

Unit 1: Increasing airport tax

Look at the table in this Ch4 article

http://www.channel4.com/news/ba-boss-airport-tax-will-damage-uk-economy

a) Suggest 2 reasons why the government has increased these taxes
b) Using the concept of PED, explain why there is such a difference in the increases

Shrews need to think more flexibly!

http://news.bbc.co.uk/sport1/hi/football/teams/s/shrewsbury/9139736.stm

Assuming the role of the FA adviser, alay the fears of Shrewsbury that they will automatically worse of with cheaper prices for these tickets.

Developing Evaluation Skills

• When the question requests causes, consequences or remedies, candidates should attempt to identify the most important ones and justify the reasons for the choice.
• Add evaluation points to revision notes
• Read comment articles to see how professions create and maintain arguments
• Watch how issues and topics can fit together.
• Use the conditional and definite form appropriately.
• Consider the impact of the issue on welfare and how this is distributed

Phrases you might use:

However; hence; nevertheless; although; with the benefit of hindsight; in the short run/long run; it depends on the PED/YED/XED

Information failure in 3 markets

3 stories from the BBC that may indicate information failure for consumers

http://www.bbc.co.uk/news/health-10986625 chocolate
http://www.bbc.co.uk/news/health-10986617 beer for women
http://www.bbc.co.uk/news/health-10987937 sunbed use

a) What is the market failure that results from information failure?
b) How would an economically rational consumer change their behaviour if theyrecived this information?
c) What problem would a consumer face when deciding how to behave with this additional information?

Tradable permits and EU CO2 emissions

This BBC clip outlines opposition to the EU carbon trading scheme

http://news.bbc.co.uk/1/hi/world/europe/7772603.stm

a) Outline how the EU tradable permit scheme works
b) What is the main reason German heavy industry opposes the scheme?

Market failure:Tradable permits or taxation?

This tutor2u presentation looks at the arguments for tradable permits or carbon taxes. A really good revision aid

http://www.tutor2u.net/economics/presentations/Europe-Carbon-Emissions-Trading.ppt#256,1,Carbon