Edexcel A Level · 9EC0 · Theme 1: Introduction to markets and market failure
1.2.7 The price mechanism
Also Edexcel AS 8EC0
Everything you need for questions on the price mechanism, in the words examiners reward. An interactive seven-step lesson goes with it.
What's on this sheet
- What the price mechanism does
- The three functions
- Types of market
- Classic question: does the price mechanism allocate resources well?
- Side 2: practice tasks, where the marks go, and exam-style questions
- Separate answer key
The lesson in seven steps
- Watch the market respond
- Signal, incentive or rationing?
- Local, national or global?
- Price signals trainer
- How good is the price mechanism?
- Build the chain
- Exam practice
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