Minimum Pricing

A current topic in the news leaving us with plenty of material to discuss in class regarding how to solve the problem of market failure and our society's over consumption of alcohol, by using a market based approach of minimum pricing.

This article from the BBC shows how the debate between England and Wales (charging a 40p minimum price) is not quite in line with the 50p Scottish proposal.

Great for IB pupils both SL and HL and although [min/max pricing] is not in the OCR AS Economics spec, this can make useful discussion as an extension. Some revision of this can also be found on T2U.

http://www.bbc.co.uk/news/health-20425183

http://www.bbc.co.uk/news/health-20515918

http://www.bbc.co.uk/news/uk-scotland-19760063

http://www.tutor2u.net/economics/revision-notes/as-marketfailure-minimum-prices.html

http://economics.fundamentalfinance.com/micro_price-floor.php