CourseCourseConceptConceptDocumentDocument

Edexcel A-Level Economics AS 1.3.5 2d Use of Diagrams Using Marginal Analysis to Illustrate the External Benefits From Questions

Practise drawing externality diagrams with MSB above MPB or MSC above MPC, locating the social optimum and welfare area.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • draw MSB above MPB to show underconsumption, the social optimum and the welfare area
  • draw MSC above MPC to show overproduction, the social optimum and welfare loss

Edexcel A-Level Economics AS 1.3.5 2d Use of Diagrams Using Marginal Analysis to Illustrate the External Benefits From Questions question 1

[Maximum number: 1]

The diagram shows the market for museum visits in Spain.

Costs and benefits

Costs and benefits

Which one of the following can be deduced from this diagram?

A

The market equilibrium quantity is at Q2\mathrm{Q}_{2}

B

The social optimum quantity is at Q1\mathrm{Q}_{1}

C

The welfare gain area would be equal to UVW

D

The welfare gain area would be equal to UWX

All question bank results loaded