Here is a good example of what happens when a market is not allowed to clear:
https://drive.google.com/a/aisbudapest.org/file/d/0B2DnmWBd6LOCWEVDNF9na1pfc00/view?usp=sharing Price ceilings: maximum prices
There will be a packet and there will be maths!
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We will address the objectives above in class and here is a further practice task to do: Firstly, we will make notes to address the following objectives:
Next, as HL students you need to be able to determine tax incidence and the effect of price elasticity of demand and supply:
You will be given some resources and tasks to do and here is an additional task: 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: http://e-conomics.weebly.com/uploads/1/9/1/7/19176587/elasticity_air_travel.pdf |