amazon.co.ukMicroeconomics and Markets
A-Level Economics revision: Microeconomics and Markets. Learning objectives, key points, worked examples and practice questions across AQA, Edexcel, OCR, WJEC and CCEA.
š Key Points
Key Fact: Demand: Pā->Qdā (law); Determinants: income, tastes, related goods, expectations, #buyers
Key Fact: Supply: Pā->Qsā; Determinants: input prices, technology, expectations, #sellers, taxes/subsidies
Key Fact: Equilibrium: Qd=Qs; Shortage: P<P* -> Qd>Qs; Surplus: P>P* -> Qs>Qd
Key Fact: PED = %DeltaQd/%DeltaP; elastic (>1), inelastic (<1), unitary (=1); factors: substitutes, necessity, time, %income
Key Fact: YED: normal (>0), inferior (<0); XED: substitutes (>0), complements (<0); PES: time, spare capacity
Key Fact: Surplus: CS = area under D above P; PS = area above S below P; Deadweight loss from intervention
Key Fact: Market structures: PC (many, homogeneous, free entry); Monopoly (one, barriers); MC (many, differentiated); Oligopoly (few, interdependence)
Key Fact: Labour: D = MRP; S = workers; Wage = MRP = MRC in PC; Monopsony: MRC > S; Unions: collective bargaining
šÆ Learning Objectives
- Analyse demand and supply: shifts vs movements, determinants
- Determine market equilibrium and disequilibrium (excess demand/supply)
- Calculate and interpret elasticities: PED, YED, XED, PES
- Understand consumer and producer surplus, allocative efficiency
- Evaluate market structures: perfect competition, monopoly, monopolistic competition, oligopoly
- Analyse labour markets: derived demand, MRP, wage determination, trade unions
- Evaluate government intervention: max/min prices, taxes, subsidies, regulation
š” Worked Example
Exam-Style Question
Question: A monopolist faces demand P = 100 - 2Q and has MC = 20. Find profit-maximising output, price, and profit
Model Answer:
MR = 100 - 4Q. Set MR = MC: 100 - 4Q = 20 -> Q = 20. P = 100 - 2(20) = 60. Profit = (P - ATC)Q. ATC = TC/Q. If TC = 20Q + 100, ATC = 20 + 5 = 25. Profit = (60-25)x20 = 700
ā Practice Questions
Model answers are being added progressively - questions marked ✗ don't have one yet. Cross-check with your teacher or the official mark scheme.
Questions:
- If PED = -0.5 and price rises 10%, %DeltaQd?✗ answer coming soon
- Explain why monopolies produce less than PC✗ answer coming soon
- Calculate CS at P=50, Q=100 for linear demand P=100-Q✗ answer coming soon
- Evaluate minimum wage using monopsony model✗ answer coming soon
- Why is PES more elastic in long run?✗ answer coming soon
š¬ Video Resources
- Microeconomics and Markets - Overview -- YouTube Search
- Microeconomics and Markets - Exam Questions -- YouTube Search
š Past Papers & Exam Resources
š Further Reading & Resources
- Physics & Maths Tutor - Microeconomics and Markets -- Free notes, worksheets, and past paper questions by topic
- Dr Frost Maths - Microeconomics and Markets -- Free resources, slides, and interactive questions
- BBC Bitesize - Microeconomics and Markets -- BBC Bitesize revision resources