100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary Cambridge International AS Level and A Level Economics Coursebook with CD-ROM, ISBN: 9780521126656 Unit 3 - Government intervention in the price system £5.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. CIE
  4.  
  5. Economics
  6.  
  7. Unit 3 - Government intervention in the price system

Summary

Summary Cambridge International AS Level and A Level Economics Coursebook with CD-ROM, ISBN: 9780521126656 Unit 3 - Government intervention in the price system
 3 views  0 purchase
  • Institution
  • CIE

A thorough yet summarised review of government microintervention, where all the important information is without having to waste your time reading through the unnecessary bits. Here is everything you need to know, not a word more, not a word less.

Preview 2 out of 5  pages

Document information

  • No
  • Chapter 3
  • November 14, 2022
  • 5
  • 2021/2022
  • Summary

Subjects

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (13)

Written for

All documents for this subject (8)

Seller

avatar-seller
arthurknight

Content preview

Government microeconomic intervention


Governments intervene in markets because of market failure.

Governments intervene by:

1. Regulations
2. Taxes and subsidies
3. Government provision


Regulations

Maximum price: A price below the market equilibrium that is imposed to increase the
quantity demanded of a good.


S
Price




P1



P2




D


0 Qs Q1 Qd

As the price is now lower, quantity supplied has decreased as suppliers are less
willing to produce as much and consumers now demand more at the price.

Minimum price: A price which is placed above the equilibrium to decrease the
quantity demanded, consequently increasing the quantity supplied.

, S
Price


P2


P1




D

Qd Q1 Qs

Quantity


Buffer stock schemes: A type of commodity agreement to limit price fluctuations by
buying and selling goods.

Taxes and subsidies

Taxation: A fee charged by the government on a product, income or activity.

Direct taxes: Tax that is levied on income and cannot be avoided. eg. income tax,
corporation tax, national insurance contributions

Indirect taxes: Tax levied on goods and services. eg. VAT, council tax, local
government tax

Incidence: The extent to which an individual or organisation suffers from the
imposition of a tax. This may be by a producer or consumer or both.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller arthurknight. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £5.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

73216 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now

Start selling
£5.49
  • (0)
  Add to cart