Summary IB Economics SL Student Notes: Your Path to Exam Success
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Course
Economics BSc Year 1 Notes
Institution
The University Of Birmingham (UBir)
Prepare to ace your IB Economics Standard Level (SL) exams with our meticulously crafted IB Economics SL Student Notes. These notes are essential for any SL student aiming to excel in their economics studies. We've taken the complexity out of economic concepts, offering crystal-clear explanations t...
stored : more elastic ( longer life + more Qs stored -
less scarce d)
perishable : more inelastic
capacity : half
capacity can still provide
The elastic your side)
more supply ,
the more
money ( producers
↳ better for producers
change in $ → oooiosrlñioocu
=
deadweight loss
1. Ban beer
Deadweight (welfare) consumption
'
loss sttax 2. Reduce consumer surplus
-
s
ex $10 es
=
rev
.
es
, gov .
P,
q
- - - -
p
✗
{
I
$2 GR
-0€ f surplus
=
Deadweight
-
A
producer
-
Pe loss
Rev -9
,
- - - - -
f f o lost of economical efficiency when the
socially
'
'
is not
$8 PS Ps
I 1
optimal quantity of gls produced
I 1 D
Q QE
;
2.7 Government in Markets
Reasons for gov . intervention
raise revenue to public service
-
pay
support producers
-
-
support for households on low income
influence the level
of production in markets ( reduce neg impact } subsidize good)
-
.
influence level of consumption
-
Indirect tax
i.
Ad valorem tax VAT (sales tax) fixed % you pay added to a price of a
good
,
↳
regressive =
spend more , pay more tax
of price given
i.
specific tax or
duty a set amount to good
, Market
Analysis of an indirect tax
Price ( thousand )
" cigarettes
$10 -
- -
- - - -
- - - -
y
l
l
l
l
l
l
l
l
l
l
$3 1
! D
50
( thousand)
Quantity
consumer d Consumer surplus
CS =
tbh =
500,000
CS =
f- bh
=
1-21201150,000 )
> consumer expenditure ( how much consumer spend)
( f =P ✗ Q = 500,000
10×50,000
=
Producer 2 Producer surplus
PS =
tbh =
175,000
=
f- (7) 150,000)
producer revenue ( how much
producer spend )
PE =P ✗ Q =
500,000
=
10×50,000
Government twin / losing
welfare d
Allocatively efficient
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