Microeconomics

Table of Contents

1. Topic pack - Microeconomics - introduction
2. 1.1 Competitive Markets: Demand and Supply
3. 1.1 Competitive Markets: Demand and Supply - notes
4. 1.1 Competitive markets - questions
5. 1.1 Competitive markets - simulations and activities
6. 1.2 Elasticities
7. 1.2 Elasticities - notes
8. Section 1.2 Elasticities - questions
9. Section 1.2 Elasticities - simulations and activities
10. 1.3 Government intervention
11. 1.3 Government Intervention - notes
12. 1.3 Government intervention - questions
    1. Markets - essay
    2. Price controls - short answer
    3. Price controls - numerical (1)
    4. Price controls - numerical (2)
    5. Calculating impact of a tax - numerical
    6. Calculating impact of a subsidy - numerical
    7. Agricultural markets - essay
    8. Cheap petrol
    9. World's food system is broken
    10. China plans price controls to curb inflation
    11. Bolivian fuel shortages
    12. Japanese rice subsidies
    13. Coffee shortages in Venezuela
13. 1.3 Government intervention - simulations and activities
14. 1.4 Market failure
15. 1.4 Market failure - notes
16. Section 1.4 Market failure - questions
17. Section 1.4 Market failure - simulations and activities
18. 1.5 Theory of the firm
19. 1.5 Theory of the firm - notes (HL only)
20. Section 1.5 Theory of the firm - questions
21. Section 1.5 Theory of the firm - simulations and activities
22. Print View

Cheap petrol

Read the article The problem with insanely low petrol prices and then answer the questions below. You can either read the article in the window below or you can follow the previous link to read the article in a separate window.

Question 1

Using diagrams, as appropriate, show how the fuel subsidy in Venezuela affects the market for petrol.

Question 2

Analyse the impact on economic efficiency of the Venezuelan fuel subsidy.

Question 3

Discuss the environmental impact of the Venezuelan fuel subsidy.