Market failure as a failure to allocate resources efficiently
We will discuss what is meant by market success/allocative efficiency and the conditions for market success before we get started looking at all the ways markets may fail to allocate resources efficiently. https://docs.google.com/a/aisbudapest.org/document/d/1GE4wdZD6mcIJ8wCTiHhGQlve5uzcG5xpa8tiyzAGVVI/edit?usp=sharing
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Price elasticity of supply and its determinants
First, we will complete some tasks in the packet you were given and also address the final objective above (p60):
The last task for the elasticity topic is a case study on the market for air travel...
Income elasticity of demand; its determinants and applications
Obviously, you all did your homework (except for __________?) and have already watched the above video on XED... hand in your graphs now. We will watch the YED graph together and then discuss both concepts and do some tasks. This article Meet the credit crunch winners illustrates a good example of real life YED. And Will price discounting help restaurants survive the crunch? has example of all three concepts of demand elasticities. And for some light relief... |
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March 2021
Maree SpraggonTeacher of IB Economics at the American School of Budapest Categories |