Context Flashcards by A A

Scarcity

Water in India (high pop means high d)
Farmers

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Low d

Peloton bikes due to faults and returns to work
Tech goods due to low pp of y by i
Print newspapers (social media and online)
Student housing (high fees mean choose uni close to home to live with parents)

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High d

Non dairy milk
Non alcoholic drinks
Electric cars and bikes
Rented accom due to high house prices and mortgage rates
Solar panels (alternative to high p electricity)

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High s

Vat cut to 5% for hospitality in 2021 reduce costs increasing q

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Low s

Poor harvest of tomatoes and peppers in 2023 summer and winter due to bad weather
Gas electric food due to Russia sanctions

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Pid

Essential meds (Pfizer) - aids and cancer
Shell and bp
Uk parcel companies in 2021 (Covid)
Lego - home games during Covid

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Pes

Covid vaccine manufacturers

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Pis

Uk energy with low stocks and closing environmentally unfriendly power plants
Uk housing with time lags and tight planning permission

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Complements

Printers and ink
Razors and blades
Coffee machines and capsules
Cars and accessories
Games and consoles
Lamps and bulbs

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Substitutes

Fast food menu items
Coke and Pepsi
Nike and adidas trainers
Airlines

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Normal yed goods

Make up
Foreign holidays
Airline travel

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Inferior yed goods

Fast food in France
Own brand food
Bus travel

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Indirect taxes

2018 France tried to raise fuel duty on petrol and diesel to increase revenue and reduce emissions
Mass protests due to regressive nature caused policy scrapping

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Subsidies

HM vaccines for most vulnerable (pregnant >50 <12 disabled)
Uk and Germany electric cars
Eu and USA agriculture
Uk r and d

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Pmin

Eu cap
Alcohol Scotland wales Ireland

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Pmax (caps)

Energy p cap uk - didn’t increase in line with p rises so lots of small firms who couldn’t sustain losses were bankrupt - then households couldn’t afford such higher prices so gov had to subsidise
Rail fares
Heathrow landing charges
Water companies

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Car

Forests in Malaysia are not privately owned - fastest deforestation in the world

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Indirect taxes

Uk sugar tax in drinks
Caused changing recipes and less sugar
Increase consumption of low/zero sugar
Overall sugar from all sources has increased since tax introduction

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Indirect tax

Uk sugar tax in drinks
Caused changing of recipes and less sugar
Increased consumption for low/zero sugar
Overall sugar consumption from all sources increased since tax introduction

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Regulation

Banning plastic cutlery plates straws in uk

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Uk anti smoking regulation

Age limits >18
Advertising bans
Public smoking bans
Compulsory warnings on packaging
Sold behind closed counter

State provision

NHS
Dentistry uk
Education uk

Tradable pollution permits

Ets uk eu
Reduced pollution

Cigarette and alcohol duty in uk increased bm
Eu cap pays farmers to leave land aside to prevent xs s
Common fisheries policy eu - discards
NHS = wait times
Schools = large class sizes
Hs2 = high costs poor management high salaries low info (northern leg cancelled)

Law of diminishing marginal returns

Coffee shop over employing baristas (lack of workspace and machines) and waiter (lack of walking space and tables) during rush hours Pizza shops Restaurants

Eos

Airlines (purchasing - fuel and planes, financial - loans, managerial, marketing) Uk supermarkets Uk energy (bulk buying before expected p rises)

Dos

Pepsi acquiring small companies = no coordination. Instead pepsi brought marketing in house and started companies without acquisition

Profit max

Both have high r and d reqs and patents Pharmaceutical companies - new drugs give firm monopoly power Electronics companies (huawei, ms, Panasonic, intel) Both need profit max to fund as much r and d as possible

Profit satisficing

Walmart 2018 reacted to higher corporation tax by paying higher w

Revenue max

Bus companies to drive out comp

Sales max

Costa to get ahead of Starbucks Netflix Amazon spotify to get large used account base Aldi and Lidl to gain market share

Survival

Fast food (five guys Wendy’s) Uk courier, airlines and clothing)

Csr

Starbucks paying coffee bean producers fair w and sustainable coffee production by planting new trees and training farmers

Tuk Tuks in India and Thailand Fruit and veg markets in India Forex markets (identical products - the currency)

Competitive markets

Uk fast food Supermarkets Takeaway delivery Retail

Closing due to high competition (online)

Toys r us New look Poundland Debenhams Wilko

Monopoly power

Google search Amazon Apple

Natural monopoly

Water National grid Bt and virgin (internet) Network rail

1st degree p discrimination

Amazon

3rd degree p discrimination - surge pricing

Train - rush hour Airlines - holidays + short notice Uber for high demand times

Monopolistic comp

Clothing Taxis Restaurants Hairdressers Hotels Nightclubs

Oligopolies p comp

Supermarkets

Oligopolies non p comp

Soft drinks global coca cola Pepsi

Oligopoly p fixing (cartel - overt collusion)

Scania OPEC (Saudi, Iran, Venezuela)

Oligopoly p leadership (tacit collusion)

Supermarket fuel providers Uk energy providers

Contestable markets

Hotel market - Airbnb Taxis - uber Takeaway - deliveroo uber eats

Monopoly regulation

Advanz fined for p increases for thyroid drugs Pcr tests overpriced Performance targets/qc Train and airlines with delays Energy companies can’t cut service in winter or vulnerable households Mergers Asda and Sainsbury’s merger blocked Regulatory capture Boeing agreed with us gov that they are immune from legal prosecution by paying a fine of $2.5bn for their 737 max

Privatisation

Royal Mail Raised rev for Gov Efficiency More focus on parcels which have higher profits Req to deliver to any postcode within 3 working days and 6 days a week

Nmw

£11.44 No net reductions in employment despite rises to nmw (instead of cutting workers they accepted lower profits or raise p)

Y tax

Reductions in uk y tax for the top bracket has resulted in a 25% increase in tax revenue since 2010