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A sugar tax would be a direct tax that would increase the price of fizzy drinks such as diet coke for consumers. This would make it more expensive for consumers to purchase fizzy drinks and would therefor...

Pollution from petrol cars is an example of a negative externality (where the actions of one person impact another without the affected person being compensated). In a competitive economy people pay the &...

Price Elasticity of Demand measures the responsiveness of quantity demanded by consumers after a change in price of the product. At A-Level this is measured via two points on the demand curve A and B. The...

The tax increases costs of production, moving the supply curve to the left by the amount of tax. There has been a fall in the equilibrium quantity and a higher price paid by consumers. The burden of tax o...

The housing market is not a perfectly competitive market as it fails to fulfil the necessary characteristics of a perfectly competitive market.
Firstly, in a perfectly competitive market, all the pr...