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Hi Mark,. For question 2 and question 5, is it possible to identify the change of producer surplus (increase or decrease) without drawing the diagrams for each and every scenario?

I do agree Shihan and I would say the candidate got lucky not to be penalised more for this, I would have liked to have seen examples from say the UK or Mexico which adopted a sugar tax. The examples used here were very generic.

Hi, for the (b) response, I think the student has done a good job on evaluation, but I don't see any real world examples... or am I missing something?

Prabhjot, if you go to the teachers section at the top of the page, you will see the same exercise with answers included. Use the following link to go there directly. Fiscal...

Kindly let me know Are answers to above question will be available?

Hi Jackson, Thank you so much for your comment. You could certainly answer this questions with an Engel curve(Income and demand) but I chose to use a demand and supply diagram. Both diagrams show how rising income lead to a decrease in the demand...

Hello, why in question b in the launderette case study has the Y axis changed from Household income to Price of Launderette. The question discusses the relationship between household income and launderettes which led me to believe the diagram should...

How is your description different Kristina, I cannot see?

Hi, just typo here: in key terms above:    The amount over and and above market price that a consumer is willing and able to purchase a good or service for. The amount over the market price should be.... Kristina

Hi Rohana, Thank you so much for your point. Yes you could show the supply curve as perfectly inelastic once the number of shows and tickets is set - so you could draw the supply curve that way. However, if you take a more long term view the number...