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Edexcel IAL Economics · WEC11
Unit 1WEC11

Markets in Action
microeconomics done right

Complete revision notes for Unit 1. Demand, supply, price determination, market failure and government intervention — structured around the Edexcel spec, with flashcards, quizzes and AI tutor for every topic.

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6 topicsfully spec-aligned
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1.3.5 — Market Failure
🔑 Key idea
Markets fail when prices give the wrong signals — causing too much or too little to be produced relative to the social optimum.
Negative externality — cost imposed on third parties; causes overproduction.
Private cost < social cost → price too low → output above MSC = MSB.
Deadweight welfare loss — market produces beyond social optimum.
Firm ignores social cost
P too low
Overproduction
Welfare loss
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Spec-aligned notes
Every WEC11 point covered
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All six topics

Everything in Unit 1, spec point by spec point

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Unit overview

What you need to know for WEC11

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The core trade-off
Every concept in Unit 1 links back to scarcity — resources are finite, wants are not. The price mechanism coordinates decisions without central direction.
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Diagrams are non-negotiable
Examiners expect supply-demand diagrams for price determination and market failure questions. Every shift must be labelled.
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Chain of analysis
8-mark questions reward full chains: cause → mechanism → outcome. E.g. tax → supply left → P rises → Qd falls.
Elasticity runs through everything
PED and PES determine who bears a tax, how much DWL results, and whether a policy achieves its intended effect.
Exam paper info

WEC11 at a glance

Assessment details
Exam paperWEC11
Duration1 hour 30 minutes
Total marks80 marks
% of A-Level20%
Question types4820
Data responseYes — Section A
Essay questionsSection B — choose 1 of 2
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