Thursday, June 30, 2011

Unit 1: The demand for Tennents lager

Nice story from the BBC

a) Why has the demand risen?
b) Given the statement " revenue from sales of Tennent's grew faster than the volume of sales a result of price rises, would you expect the demand for Tennents to be elastic or inelastic? Explain your answer
c) Given your answers to a) and b), draw a S&D diagram to show the effect of the increase in demand on the market for Tennents

Wednesday, June 22, 2011

Unit 1: New images on US cigarette packets

Thanks to tutor2u for this post; click on the link to the Washington Post to see the images that the US govt will force cigarette firms to put on packets

a) What sort of action is this by the US govt?
b) Why has it taken this action; ie what is the market failure in the cigarette market?
c) To what extent do yoy believe this action will reduce nthe market failure?

Friday, June 17, 2011

Unit 1: Drought hits the wheat crop

The BBC reports that the drought in parts of the UK will hit the wheat harvest

a) Using a S&D diagram, explain the likely effect on the price of wheat

Sunday, June 05, 2011

Unit 2: Australian economy goes in to reverse

....according to the BBC video article

a) Give 2 reasons why Australia's growth has stalled
b) Why is it expected growth will resume in the next quater?