amazon.co.ukMicroeconomics and Markets
A-Level Economics revision: Microeconomics and Markets. Learning objectives, key points, worked examples and practice questions across AQA, Edexcel, OCR, WJEC and CCEA.
📌 Key Points
Key Fact: Demand: P↓->Qd↑ (law); Determinants: income, tastes, related goods, expectations, #buyers
Key Fact: Supply: P↑->Qs↑; Determinants: input prices, technology, expectations, #sellers, taxes/subsidies
Key Fact: Equilibrium: Qd=Qs; Shortage: P<P* -> Qd>Qs; Surplus: P>P* -> Qs>Qd
Key Fact: PED = %DeltaQd/%DeltaP; elastic (>1), inelastic (<1), unitary (=1); factors: substitutes, necessity, time, %income
Key Fact: YED: normal (>0), inferior (<0); XED: substitutes (>0), complements (<0); PES: time, spare capacity
Key Fact: Surplus: CS = area under D above P; PS = area above S below P; Deadweight loss from intervention
Key Fact: Market structures: PC (many, homogeneous, free entry); Monopoly (one, barriers); MC (many, differentiated); Oligopoly (few, interdependence)
Key Fact: Labour: D = MRP; S = workers; Wage = MRP = MRC in PC; Monopsony: MRC > S; Unions: collective bargaining
🎯 Learning Objectives
- Analyse demand and supply: shifts vs movements, determinants
- Determine market equilibrium and disequilibrium (excess demand/supply)
- Calculate and interpret elasticities: PED, YED, XED, PES
- Understand consumer and producer surplus, allocative efficiency
- Evaluate market structures: perfect competition, monopoly, monopolistic competition, oligopoly
- Analyse labour markets: derived demand, MRP, wage determination, trade unions
- Evaluate government intervention: max/min prices, taxes, subsidies, regulation
💡 Worked Example
Exam-Style Question
Question: A monopolist faces demand P = 100 - 2Q and has MC = 20. Find profit-maximising output, price, and profit
Model Answer:
MR = 100 - 4Q. Set MR = MC: 100 - 4Q = 20 -> Q = 20. P = 100 - 2(20) = 60. Profit = (P - ATC)Q. ATC = TC/Q. If TC = 20Q + 100, ATC = 20 + 5 = 25. Profit = (60-25)x20 = 700
❓ Practice Questions
Questions:
- If PED = -0.5 and price rises 10%, %DeltaQd?
- Explain why monopolies produce less than PC
- Calculate CS at P=50, Q=100 for linear demand P=100-Q
- Evaluate minimum wage using monopsony model
- Why is PES more elastic in long run?
🎬 Video Resources
- Microeconomics and Markets - Overview -- YouTube Search
- Microeconomics and Markets - Exam Questions -- YouTube Search
📄 Past Papers & Exam Resources
🔗 Further Reading & Resources
- Physics & Maths Tutor - Microeconomics and Markets -- Free notes, worksheets, and past paper questions by topic
- Dr Frost Maths - Microeconomics and Markets -- Free resources, slides, and interactive questions
- BBC Bitesize - Microeconomics and Markets -- BBC Bitesize revision resources
📚 Lesson Plan (50 minutes)
- Starter (5 min): Recall prior knowledge of microeconomics and markets with quick questions.
- Teaching (15 min): Work through each of the learning objectives, explaining principles step by step.
- Key points review (5 min): Revisit the key points together, confirming understanding.
- Worked example (10 min): Model the example question: A monopolist faces demand P = 100 - 2Q and has MC = 20. Find profit-maximising output, price, and profit. Solution: MR = 100 - 4Q. Set MR = MC: 100 - 4Q = 20 -> Q = 20. P = 100 - 2(20) = 60. Profit = (P - ATC)Q. ATC = TC/Q. If TC = 20Q + 100, ATC = 20 + 5 = 25. Profit = (60-25)x20 = 700
- Practice (10 min): Students attempt the practice questions independently; circulate and support.
- Plenary (5 min): Review answers and address misconceptions.
🏠 Homework
- If PED = -0.5 and price rises 10%, %DeltaQd?
- Explain why monopolies produce less than PC
- Calculate CS at P=50, Q=100 for linear demand P=100-Q
- Evaluate minimum wage using monopsony model
- Why is PES more elastic in long run?
🧾 Assessment
Check practice answers against the model answer; use the built-in practice questions as formative assessment.