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A-Level Government Intervention in Markets
What the A-Level syllabus expects for Government Intervention in Markets, and how to practise it.
What the syllabus expects
- Governments can step into markets using taxes, subsidies, price controls (maximum and minimum prices) and quantity controls (quotas).
- Such intervention can move the equilibrium price and quantity, consumer expenditure and producer revenue, consumer surplus and producer surplus.
- How intervention affects a market may hinge on the price elasticities of demand and supply.
Scope: Understanding the 'incidence' of taxes and subsidies is not required.
More A-Level H2 Economics topics
Scarcity, Choice and How Resources Get Allocated · How Economic Agents Reach Decisions · The Price Mechanism and What It Does · Applying Demand and Supply Analysis · What Firms Aim For · Cost and Revenue for Firms · all of A-Level H2 Economics