100% de satisfacción garantizada Inmediatamente disponible después del pago Tanto en línea como en PDF No estas atado a nada
Buscado previamente por ti
Summary Cambridge International AS & A Level Eco, ISBN: 9781107679511 Unit 3 - Government intervention in the price system (9708)$15.41
Añadir al carrito
Unit 3 - Government intervention in the price system (9708)
Resumen
Summary Cambridge International AS & A Level Eco, ISBN: 9781107679511 Unit 3 - Government intervention in the price system (9708)
26 vistas 0 veces vendidas
Grado
Unit 3 - Government intervention in the price system (9708)
Institución
CIE
Book
Cambridge International AS and A Level Economics Coursebook with CD-ROM
These documents include the whole summary for Topic 3:Government microeconomic intervention of Economics (CIE). The summary includes the most important key terms and concepts needed for sitting the exam. Also, there is a big range of brief, detailed information that will help you understand the top...
Class Notes Price Mechanism (Supply and Demand) Microeconomics A Levels
Market Structure Notes for all A-Level Economics Courses
The Basics to Economics AS
Todos para este libro de texto (18)
Escuela, estudio y materia
A/AS Level
CIE
Economics
Unit 3 - Government intervention in the price system (9708)
Todos documentos para esta materia (8)
Vendedor
Seguir
maradelrosariopadillasnchez
Vista previa del contenido
Economics notes
Topic 3
Government microeconomic intervention
How do the governments intervene?
Governments intervene in markets and the justification is the market failure.
➔ Regulations
◆ Max price
◆ Min price
➔ Taxes
◆ Direct
◆ Indirect
● Ad valorem
● Specific taxes
➔ Subsidies
➔ Government provision
◆ Transfer payments
◆ Direct provision of goods + services
◆ Nationalisation + Privatisation
Regulations
➢ Maximum price : set by govt so that a good doesn't become too expensive to
produce/consume.
○ Below the free
market price
■ Prevent being
ineffective
1
, ○ As price is lower, supply decreases
■ Suppliers - less willing to produce as much
■ Consumers now demand more at the price level
■ Producers receive less profit
➢ Minimum price: set by the govt so that a good never falls
below a certain price.
○ Also called Price floors
○ Price increases
■ Causes oversupply
● Govt will have to buy surplus
○ Causes: deadweight welfare loss
■ Occurs when there is difference
between the price the marginal
demander is willing to pay + the
equilibrium price
■ The loss of consumer + producer
surplus
Taxes
➔ Direct :
◆ Paid directly to the govt (cannot be
avoided)
➔ Indirect :
◆ Imposed by the govt to increase
production costs for producers
◆ Producers supply less
● Increases market price
● Demand contracts
◆ Specific taxes: tax per unit
● Demand is perfectly inelastic
● Supply perfectly elastic
● Shaded area : size of the tax paid by the consumer
2
Los beneficios de comprar resúmenes en Stuvia estan en línea:
Garantiza la calidad de los comentarios
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Compra fácil y rápido
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Enfócate en lo más importante
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable.
Así llegas a la conclusión rapidamente!
Preguntas frecuentes
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.
100% de satisfacción garantizada: ¿Cómo funciona?
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller maradelrosariopadillasnchez. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for $15.41. You're not tied to anything after your purchase.
