micro examples

• Applying real-life examples in microeconomics exams is crucial for backing up points, evaluating, and writing adjustments
• What are two countries facing water scarcity issues mentioned in the study material?

  India and Cape Town
• A change in fashion towards lower or no alcoholic drinks in the UK has driven up demand
• Why has the demand for student housing in the UK shifted left?

  High cost of education
• Match the shift in demand with its cause:

  Shift right ↔️ Lower alcoholic drinks

  Shift left ↔️ Online newspapers
• What is an example of a cheaper substitute for dining in mentioned in the material?

  Delivery services
• The sugar tax in the UK has increased the cost of producing fizzy drinks.
• Subsidies for gas fuel in India reduce production costs, causing a supply shift to the right.
• What has caused the price of vanilla to increase significantly?

  High demand for vanilla
• Match the supply shift with its cause:

  Shift right ↔️ Increased competition

  Shift left ↔️ Weather issues
• What is an example of a good with price inelastic demand mentioned in the material?

  Basic commodities
• Basic commodities are necessary goods with few substitutes.
• Match the type of good with its example:

  Normal good ↔️ Foreign holidays

  Inferior good ↔️ Fast food
• The excessive consumption of red meat is linked to negative externalities due to its impact on health.
• Housing is an example of a good with price inelastic supply due to low capacity.
• What are two complementary goods mentioned in the study material?

  Nespresso machines and capsules ||| Printers and ink
• Vaccinations are an example of a good with positive externalities in consumption.
• Common access resources are non-excludable and non-rival because there is no private ownership.
• Match the policy with its example:

  Subsidies ↔️ Electric car incentives

  Regulation ↔️ Smoking bans
• What is an example of a public good mentioned in the study material?

  Roads
• What is an example of innovative regulation proposed by Theresa May in the UK?

  Deposit recycling scheme
• Minimum alcohol pricing in Scotland aims to reduce excessive alcohol consumption.
• Rent control is being proposed in London by Jeremy Corbyn.
• What is an example of a market structure that closely resembles perfect competition?

  Fruit and veg market
• Match the market structure with its example:

  Monopolistic competition ↔️ Hairdressing salons

  Non-competitive oligopoly ↔️ Bus companies

  Legal monopoly ↔️ Google search
• What is an example of a company with monopoly power in the UK?

  Merlin attractions
• UPS has a global market share of 26% in the EU.
• What percentage market share does Google have in search engines according to the example given?

  88 percent
• A market with a single seller is called a monopoly
• Condoms are considered a necessity item.
• Which company owns major theme parks such as Thorpe Park and Alton Towers?

  Merlin
• UPS has a 26% market share in the UK
• Natural monopolies often include rail infrastructure and utilities
• Which motor fuel provider in the UK is currently being investigated by the CMA for potential monopoly power?

  Tesco
• Match the type of price discrimination with an example:

  First degree ↔️ Amazon Go

  Third degree ↔️ Uber surge pricing
• What are examples of contestable markets mentioned in the study material?

  Taxis, hotels, streaming
• Loss-making companies are examples of imperfect competition.
• Markets with huge economies of scale include energy and supermarkets
• Name three loss-making companies mentioned in the study material.

  Blackberry, Monarch Airlines, Toys R Us
• Profit maximization is a primary objective for firms in the pharmaceutical industry.