Market Failure

Market Failure I
- Positive externalities
- Negative externalities

http://beta.economicspro.eu/vid.php?user=EconomicsPro&video_id=25

Market Failure II
- Public goods
- Under provision of merit and over provision of demerit goods
- Abuse of monopoly power
- Government response to market failure

http://beta.economicspro.eu/vid.php?user=EconomicsPro&video_id=26

Market Failure - Positive Externalities

http://www.youtube.com/user/pajholden#p/u/6/j4M-90nlReY

U1 - Lincoln - free parking reduces welfare of town! Shock!

In this article, we see that Lincoln has offered FREE Parking to shoppers in the run up to Christamas.  The town lost it's annual Christmas market and seeks to encourage shoppers into the town.

Read the article above then answer the qusestion:

Using the article and your economic knowledge, evaluate the statrement that "measures to boost economic activitity are doomed to fail when they ignore market conditions".

AS More Fish...

http://news.bbc.co.uk/1/hi/business/8408895.stm


a) Who supplies fish to the maket
b) Who buys fish in the market?
c) How is the market price determined for any fish?
d) Does this fish market meet the economic definition of a market?

An exercise from Brin's AS Blog