Context Flashcards
Scarcity
Water in India (high pop means high d)
Farmers
Low d
Peloton bikes due to faults and returns to work
Tech goods due to low pp of y by i
Print newspapers (social media and online)
Student housing (high fees mean choose uni close to home to live with parents)
High d
Non dairy milk
Non alcoholic drinks
Electric cars and bikes
Rented accom due to high house prices and mortgage rates
Solar panels (alternative to high p electricity)
High s
Vat cut to 5% for hospitality in 2021 reduce costs increasing q
Low s
Poor harvest of tomatoes and peppers in 2023 summer and winter due to bad weather
Gas electric food due to Russia sanctions
Pid
Essential meds (Pfizer) - aids and cancer
Shell and bp
Uk parcel companies in 2021 (Covid)
Lego - home games during Covid
Pes
Covid vaccine manufacturers
Pis
Uk energy with low stocks and closing environmentally unfriendly power plants
Uk housing with time lags and tight planning permission
Complements
Printers and ink
Razors and blades
Coffee machines and capsules
Cars and accessories
Games and consoles
Lamps and bulbs
Substitutes
Fast food menu items
Coke and Pepsi
Nike and adidas trainers
Airlines
Normal yed goods
Make up
Foreign holidays
Airline travel
Inferior yed goods
Fast food in France
Own brand food
Bus travel
Indirect taxes
2018 France tried to raise fuel duty on petrol and diesel to increase revenue and reduce emissions
Mass protests due to regressive nature caused policy scrapping
Subsidies
HM vaccines for most vulnerable (pregnant >50 <12 disabled)
Uk and Germany electric cars
Eu and USA agriculture
Uk r and d
Pmin
Eu cap
Alcohol Scotland wales Ireland
Pmax (caps)
Energy p cap uk - didn’t increase in line with p rises so lots of small firms who couldn’t sustain losses were bankrupt - then households couldn’t afford such higher prices so gov had to subsidise
Rail fares
Heathrow landing charges
Water companies
Car
Forests in Malaysia are not privately owned - fastest deforestation in the world
Indirect taxes
Uk sugar tax in drinks
Caused changing recipes and less sugar
Increase consumption of low/zero sugar
Overall sugar from all sources has increased since tax introduction
Indirect tax
Uk sugar tax in drinks
Caused changing of recipes and less sugar
Increased consumption for low/zero sugar
Overall sugar consumption from all sources increased since tax introduction
Regulation
Banning plastic cutlery plates straws in uk
Uk anti smoking regulation
Age limits >18
Advertising bans
Public smoking bans
Compulsory warnings on packaging
Sold behind closed counter
State provision
NHS
Dentistry uk
Education uk
Tradable pollution permits
Ets uk eu
Reduced pollution
Gf
Cigarette and alcohol duty in uk increased bm
Eu cap pays farmers to leave land aside to prevent xs s
Common fisheries policy eu - discards
NHS = wait times
Schools = large class sizes
Hs2 = high costs poor management high salaries low info (northern leg cancelled)
Law of diminishing marginal returns
Coffee shop over employing baristas (lack of workspace and machines) and waiter (lack of walking space and tables) during rush hours
Pizza shops
Restaurants
Eos
Airlines (purchasing - fuel and planes, financial - loans, managerial, marketing)
Uk supermarkets
Uk energy (bulk buying before expected p rises)
Dos
Pepsi acquiring small companies = no coordination. Instead pepsi brought marketing in house and started companies without acquisition
Profit max
Both have high r and d reqs and patents
Pharmaceutical companies - new drugs give firm monopoly power
Electronics companies (huawei, ms, Panasonic, intel)
Both need profit max to fund as much r and d as possible
Profit satisficing
Walmart 2018 reacted to higher corporation tax by paying higher w
Revenue max
Bus companies to drive out comp
Sales max
Costa to get ahead of Starbucks
Netflix Amazon spotify to get large used account base
Aldi and Lidl to gain market share
Survival
Fast food (five guys Wendy’s)
Uk courier, airlines and clothing)
Csr
Starbucks paying coffee bean producers fair w and sustainable coffee production by planting new trees and training farmers
Pc
Tuk Tuks in India and Thailand
Fruit and veg markets in India
Forex markets (identical products - the currency)
Competitive markets
Uk fast food
Supermarkets
Takeaway delivery
Retail
Closing due to high competition (online)
Toys r us
New look
Poundland
Debenhams
Wilko
Monopoly power
Google search
Amazon
Apple
Natural monopoly
Water
National grid
Bt and virgin (internet)
Network rail
1st degree p discrimination
Amazon
3rd degree p discrimination - surge pricing
Train - rush hour
Airlines - holidays + short notice
Uber for high demand times
Monopolistic comp
Clothing
Taxis
Restaurants
Hairdressers
Hotels
Nightclubs
Oligopolies p comp
Supermarkets
Oligopolies non p comp
Soft drinks global coca cola Pepsi
Oligopoly p fixing (cartel - overt collusion)
Scania
OPEC (Saudi, Iran, Venezuela)
Oligopoly p leadership (tacit collusion)
Supermarket fuel providers
Uk energy providers
Contestable markets
Hotel market - Airbnb
Taxis - uber
Takeaway - deliveroo uber eats
Monopoly regulation
Advanz fined for p increases for thyroid drugs
Pcr tests overpriced
Performance targets/qc
Train and airlines with delays
Energy companies can’t cut service in winter or vulnerable households
Mergers
Asda and Sainsbury’s merger blocked
Regulatory capture
Boeing agreed with us gov that they are immune from legal prosecution by paying a fine of $2.5bn for their 737 max
Privatisation
Royal Mail
Raised rev for Gov
Efficiency
More focus on parcels which have higher profits
Req to deliver to any postcode within 3 working days and 6 days a week
Nmw
£11.44
No net reductions in employment despite rises to nmw (instead of cutting workers they accepted lower profits or raise p)
Y tax
Reductions in uk y tax for the top bracket has resulted in a 25% increase in tax revenue since 2010
