← Market equilibrium
How this connects to the other Level 3 Economics standards
This is the foundational market model both 91400 (market structures) and 91403 (macro-economic influences) build on — the same CS/PS/allocative-efficiency machinery reappears, applied to a firm or the whole economy instead of a single market.Shared ideas across the Level 3 Economics externals
- Allocative efficiency (P = MC here, price = marginal benefit = marginal cost more generally) is the identical concept 91400 applies inside a single firm's market structure.
- A government intervention shifting a curve away from equilibrium — a tax, subsidy, or price control — is the same welfare-graph machinery, whether the market is a single good here or the whole economy's aggregate demand/supply in 91403.
- The elasticity concept (PED, and the revenue/burden implications of elastic vs inelastic) recurs directly in any standard discussing tax incidence or policy effectiveness.
Why this matters for revision order
Master the welfare-graph reading skill here first — labelling CS, PS, government revenue/cost and deadweight loss on a shifted curve — since 91400 reuses the identical graph-reading discipline inside a single firm's market.Before writing anything
- Identify the intervention type (tax, tariff, subsidy, quota, price ceiling/floor) and which curve it directly shifts, before attempting any part of the question.