AS Microeconomics: Markets and Market Failure
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Perfect weather yields bumper cereal harvest for British farmers http://gu.com/p/4xazt/tw
Marist Economics's insight:

When supply increases, then prices fall. So although bumper harvests sounds like happy farmers...the revenue will be hit unless prices hold up. Fortunately for UK some other markets overseas have been less fortunate so prices may hold up in the long run.

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Govt Intervention: Alcohol floor price announced

Govt Intervention: Alcohol floor price announced | AS Microeconomics: Markets and Market Failure | Scoop.it

Via Matt Smith
Marist Economics's insight:

Minimum pricing on alcohol per unit to cover the externality cost

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Don’t bet the house on price rises persisting

Don’t bet the house on price rises persisting | AS Microeconomics: Markets and Market Failure | Scoop.it
Supply constraints are not the only cause of the UK’s property inflation, writes Tim Harford ‘George Osborne has admitted that UK housing supply will struggle to keep up with demand for the next de...
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Prosecco topples champagne as top sparkling tipple

Prosecco topples champagne as top sparkling tipple | AS Microeconomics: Markets and Market Failure | Scoop.it
Tesco expects to sell 250,000 bottles of the Italian white wine in the runup to New Year's Eve
Marist Economics's insight:

Demand factors- is it because it's cheaper than champagne (inferior good)  or cooler than it (fashion)?

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Dan Martin's curator insight, January 2, 2014 9:46 AM

What might the XED be for these two products? Can you show the change on Supply and Demand diagrams?

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Negative Externalities & Information Failure: Paxman shows Coca Cola boss how much sugar is in a supersize cup

Calls are growing for high sugar drinks to be taxed in the same way as cigarettes to curb rising obesity. Does the drinks industry's resistance echo that of ...

Via Saint Martin's - Economics , Matt Smith
Marist Economics's insight:

Jeremy Paxman does 'show and tell' with the boss of Coca Cola.

Profits before health? Demerit good?

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Jay Caulthar's curator insight, January 20, 2014 12:51 PM

#CocaColaSugar #InformationFailiure #NegativeExternalities

Mark Solomons's comment, February 22, 2014 2:34 AM
How uncomfortable was he?
Mark Solomons's curator insight, February 22, 2014 2:36 AM

Paxman giving Coca-Cola a grilling. Is Coke a demerit good?

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Mortgage help scheme scaled back

Mortgage help scheme scaled back | AS Microeconomics: Markets and Market Failure | Scoop.it
Marist Economics's insight:

Housing market: One key Demand shift factor is price of complementary goods; in this case morgage lending has been assissted by Govt Funding For Lending Scheme. FLS is being reduced for mortgages and increased for business lending instead- so what effect would an increase the price of mortgages have on Demand for homes?

 

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Positive Externalities

Showing Positive externalities on a diagram 

Marist Economics's insight:

Can you explain why this is market failure?

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Sugary Drinks Tax 'Could Raise Treasury £275m'

Sugary Drinks Tax 'Could Raise Treasury £275m' | AS Microeconomics: Markets and Market Failure | Scoop.it
A 20% tax could reduce demand and fight obesity and tooth decay, but some researchers claim taxing food is politically unworkable. Can you calculate PED of sugary drinks (assuming the 20% tax translates to a 20% increase in the retail price)? Will the tax be effective in reducing quantities consumed?
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Negative Externalities: Tax on sugary drinks.

Negative Externalities: Tax on sugary drinks. | AS Microeconomics: Markets and Market Failure | Scoop.it
Marist Economics's insight:
After half term we will review cases of 'market failure' and what governments can do about it. This is an example where the market over supplies a good with a cost to society-obesity. Will a tax on fizzy sugary drinks curb supply and thus reduce demand?
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Twitter / Marist_Econ: Marist sixth formers enjoyed ...

Twitter / Marist_Econ: Marist sixth formers enjoyed ... | AS Microeconomics: Markets and Market Failure | Scoop.it
Marist Economics's insight:

"Success is a journey not a destination" David Dein 14 Oct 2013

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Land Rover 'vastly underestimated' new model demand, in supply crunch

Land Rover 'vastly underestimated' new model demand, in supply crunch | AS Microeconomics: Markets and Market Failure | Scoop.it
Land Rover's string of successful product has left the company in a situation where demand is rapidly outstripping supply or production, particularly in China, where Range Rovers are selling for over $400,000.
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Hot summer helps Kingfisher results

Hot summer helps Kingfisher results | AS Microeconomics: Markets and Market Failure | Scoop.it
The hot summer helps the DIY retailer Kingfisher - owner of B&Q and Screwfix - to a stronger summer sales performance.
Marist Economics's insight:

This is a 2013 update to the story you did as summer homework!

Rather than the soggy summer of two years ago, a much better summer has benefited sales of outdoor goods at B&Q and Screwfix.

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UK house prices rise again in August - Nationwide - Telegraph

UK house prices rise again in August - Nationwide - Telegraph | AS Microeconomics: Markets and Market Failure | Scoop.it
House prices surged higher again in August as Government schemes and improved mortgage lending continued to fuel property market revival.
Marist Economics's insight:

Can you identify the demand factors that are driving house prices upwards?

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What Gangnam Style represents in opportunity cost terms

What Gangnam Style represents in opportunity cost terms | AS Microeconomics: Markets and Market Failure | Scoop.it
Here’s a light-hearted one! What could we have had instead of 2 billion views of Gangnam Style?The Economist ponders that question..
Marist Economics's insight:

Opportunity cost is such a useful concept in economics- here's a fun way to measure time spent watching YouTube video in terms of foregone alternatives...

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Econly's curator insight, September 6, 2014 2:09 PM

Superb!

 

 

 

 

 

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Sugar tax may be needed, MPs told

Sugar tax may be needed, MPs told | AS Microeconomics: Markets and Market Failure | Scoop.it
The introduction of a sugar tax may be necessary to curb obesity rates, the chief medical officer for England says.
Marist Economics's insight:

Is sugar a demerit good? Is all sugar bad? How will any intervention discriminate between natural sugar content and refined sugar? Or will fruit juice be considered as having the same negative externalities as a sweet?

Notice how tackling information failure with clearer labeling is considered alongside any tax disincentives.

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We wish you a merry(ish) Christmas

We wish you a merry(ish) Christmas | AS Microeconomics: Markets and Market Failure | Scoop.it
AMONG man’s earliest artefacts are vessels to store and carry booze. Drunk from Stone Age jugs or Etruscan amphoras, fermented sugars have brought cheer for more...
Marist Economics's insight:

Scotland and Canada have a Minimum Price Control on units of alcohol. No evidence from Scotland yet but alcohol-related deaths fell by 32% in British Columbia following a 10% rise in the average minimum price from 2002 to 2009.

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'Popplet' mind-map of Econ1

Popplet is the best app for sharing visual ideas.
Marist Economics's insight:

Mind map of main sections of Econ1 specification. Ensure you can use diagrams to explain HOW interventions work to correct market failures.

Challenge yourself to recommend which interventions are appropraite for each individual failures- use real examples too!

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Dan Martin's curator insight, January 2, 2014 9:58 AM

This looks like it might be some use in classes. Can we build our own?

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Will changing cigarette packets reduce smoking?

Will changing cigarette packets reduce smoking? | AS Microeconomics: Markets and Market Failure | Scoop.it
Marist Economics's insight:

Negative externalities of cigarette smoking. Note how despite price +351% in 20 years there has relatively little decrease in demand. Also interesting to see how banning cigarette advertising is trying to address the information failure contributing to the overconsumption of these demerit goods

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Adam Skordi's curator insight, August 28, 2014 5:18 PM

An excellent link covering the reasons why cigarette smoking is a market failure and various policies available to governments.

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Plain cigarette packaging set for 2015 after Government U-turn - Brand Republic News

Plain cigarette packaging set for 2015 after Government U-turn - Brand Republic News | AS Microeconomics: Markets and Market Failure | Scoop.it
The Government is reportedly set to launch an independent review that could introduce plain cigarette packaging by 2015, despite health secretary Jeremy Hunt previously delaying a decision indefinitely.
Marist Economics's insight:

Negative extrnalities produced on consumption of the demerit good arise partly as a result of imperfect information. The buyer (particularly teens) may be unaware of long term damage they are doing to their health and others, whilst the seller (the brand) is advertising via its packaging how cool and distinctive it is. To address this information failure regulation is being considered by government to force manufaturers to use plain packaging- or even packs that show the harmful effects- like rotten teeth

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Negative Externalities

Negative externalities on a diagram - and how tax can correct market failure
Marist Economics's insight:

Having someone other than Mr Bennett explain this may help...

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999: What's Your Emergency? - 4oD

999: What's Your Emergency? - 4oD | AS Microeconomics: Markets and Market Failure | Scoop.it
999: What's Your Emergency? on 4 on Demand. Watch 999: What's Your Emergency? online when you want on 4oD.
Marist Economics's insight:

Just as you are reaching the age at which you can legally consume alcohol, here is a sobering reminder of the realities of drink.

 

Yes this is an economics not just a moral problem: the free market is failing to allocate goods optimally for society- there is just too much booze available at too low prices. There is a cost to UK society- to the NHS alone it costs £3,500,000,000 a year, and this doesn't include alcohol-related crime and clean up costs.

Warning: Not easy watching!

 

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Cocoa price soars as chocolate sales up

Cocoa price soars as chocolate sales up | AS Microeconomics: Markets and Market Failure | Scoop.it
Marist Economics's insight:
Marist Economics's insight:

Demand (main factor) and Supply (secondary factor) combine to create an upward increase in Cocoa commodity prices.

This could be an expensive Christmas!

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Supply Factor: UK housebuilding grows at fastest pace in a decade

Supply Factor: UK housebuilding grows at fastest pace in a decade | AS Microeconomics: Markets and Market Failure | Scoop.it
British builders contructed new homes at the fastest pace in almost a decade last month boosted by the Help to Buy scheme
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Faith Withane's curator insight, September 1, 2014 7:50 PM

British builders constructed new homes at the fasted pace in almost a decade last month boosted by the Help to Buy scheme. Housing activity increased in September at a pace not seen since November 2003. The scheme pushes up house prices and drives housebuilding by creating demand. Tim Moore says, " Construction is no longer the weakest link in the Uk economy." The industry is taking on more staff at the fastest rate in almost six years. There is optimism for this industry and the scheme in the coming years. 

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The era of cheap food may be over

The era of cheap food may be over | AS Microeconomics: Markets and Market Failure | Scoop.it
A spike in prices caused by poor harvests and rising demand is an apt moment for the west to reassess the wisdom of biofuels
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Factors influencing demand: Wonga profits leap on loan demand

Factors influencing demand: Wonga profits leap on loan demand | AS Microeconomics: Markets and Market Failure | Scoop.it
Short-term loan provider Wonga reports a 35% jump in profits for 2012, as consumers continue to seek access to fast credit.
Marist Economics's insight:

Sadly demand is rising for short term cash loans despite punitive interest rates, consumers seem to like the convenient easy money, at a time when there are fewer substitutes- bank loans are harder to get since banking crisis/recession. Consumers are also wary of getting into a debt spiral so Wonga is prefered by many to credit cards as its a fixed amount you borrow.

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