How Markets Work and Market Failure

How Markets Work and Market Failure Description A Year 11 Economics lesson exploring how demand and supply determine prices, how markets reach equilibrium, and why market failure occurs. Students examine price elasticity of demand, externalities and the role of government intervention through explanations, activities and applied examples. Summary Students will: Understand how demand and supply interact to determine equilibrium. Explain how prices influence the choices of consumers and producers. Calculate and interpret Price Elasticity of Demand (PED). Distinguish between elastic and inelastic demand. Explain how negative externalities lead to market failure. Apply economic reasoning to real-world examples such as congestion and green taxes. What you get A complete 14-slide Year 11 Economics lesson. Engaging starter questions and discussion activities. Sequencing and multiple-choice knowledge checks. Clear explanations of equilibrium, price discovery, PED and externalities. Worked PED calculations using realistic prices and sales data. A video-based explanation of elasticity. Application tasks involving green taxes and market failure. A final knowledge check to assess understanding.