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Example text
G. increased car ownership), and manufacturing. In contrast, services are more labour-intensive and less highly-capitalised. 5 The geographical distribution of the population Geographically, the population of the UK is dominated by two features: it is concentrated, and it is urban. Both are the result of moving from an agricultural to an industrial economy. (a) The concentrated nature of the population As a result of the industrial revolution industry migrated to the coalfields in the Midlands and north of England.
Here competition amongst sellers will mean that the price falls to 4p, where 25,000 eggs are both demanded and supplied. 5 Functions of price in the market economy Our analysis can be applied to practical problems, especially those relating to government policy. First, however, we use it to examine the role of price in the market economy. In a free market, price both indicates and motivates. (a) Price 'rations out' scarce goods At any one time the supply of a good is relatively fixed. It therefore has to be apportioned among the many people wanting it.
G. g. fruit, wine) that she requires. What Britain has to ask, therefore, is: can exports be increased sufficiently to pay for the extra imports required by the larger population without a severe deterioration in her terms of trade especially when North Sea oil eventually runs out? Throughout the nineteenth century Britain proved that this was possible. Indeed a balance-of-payments surplus allowed her to invest heavily abroad. But since then the problem of finding and holding foreign markets has become more difficult.