RWE - paper 1

Question 1

RWe

Demand

Answer 1

McDonald’s China (2024): Opening 1,000 stores → reflects rising demand for fast food (income change / tastes).

Question 2

PES

Answer 2

India Tomatoes (July 2023): Prices rose 300% (Rs 24.68 → Rs 108.92/kg) due to low supply (rainfall impact). Inelastic PES.

PES is inelastic = cant produce more in short time

Question 3

supply

Answer 3

Taiwan eggs: Shortage + price rise by NT$3 due to bad weather and chemical contamination.

Question 4

PED

Answer 4

Bangladesh Rice (2020): Inelastic demand → staple food, demand barely drops even with price rise.

Good for showing PED < 1 (necessity)

Question 5

RWE

Min wage/price floor

Answer 5

Taiwan (2016): Min. wage rose 4%, benefiting 600,000+ workers.

[Good for labour market intervention]

Question 6

Price ceiling/rent

Answer 6

Veneuzuala hyperinlfation = cap on food prices = non.price razioning

rent in new york= surging prices = protest = price ceiling

Question 7

Carbon Tax

Answer 7

Germany Carbon Tax: Excise on petrol/diesel + VAT → reduces car emissions.

Question 8

NEC; Indirect tax/pigouvian tax

Answer 8

cannabis tax on san diego state (2025) = rose form 8% to 10%
=> to increase govenrment revenue and decrease consumption

Question 9

PEC

Answer 9

Taiwan YouBike 2.0: 500+ stations by end of 2024 → green transport.

Question 10

subsidies

Answer 10

China Solar Panels: Production ↑ 25% with government subsidies.

Question 11

direct provision

Answer 11

Singapore: Reusable mask distribution (Apr 2020). COVID

Question 12

Leg & Reg

Answer 12

Australia: Mandated school vaccines, indoor smoking ban in 2007 → lowest smoking rates.

Question 13

Public goods

Answer 13

streetlights, military, parks, sewers.

Question 14

CPR

Answer 14

North East Atlantic Overfishing: 44% over limit → UK seafood brands threatened boycott. (ex: Tesco, aldi, Young’s Seafood - Guardian)

Question 15

RWE

GDP

Answer 15

Qatar: ~$84,500 GDP/capita, but high income inequality due to reliance on low-paid migrant workers.

China: ~$12,000 GDP/capita, rapid growth lifted 800+ million out of poverty (World Bank), industrial-led development.

Nigeria: ~$2,400 GDP/capita, oil-rich but low life expectancy (~54 yrs) and high poverty → weak infrastructure + inequality.