Economics Explained
Clear explanations of current economic events, written for A-level students studying AQA or Edexcel Economics. Each article shows how real-world examples can be used to understand economic theory, strengthen analysis and improve evaluation.
Who Gains and Who Loses from a Tariff? Consumer Surplus, Producer Surplus and Welfare
See who gains and who loses from a tariff, and how consumer surplus, producer surplus, government revenue and deadweight welfare loss are shown on the tariff diagram.
How Does a Tariff Work? The Tariff Diagram Explained
Learn how a tariff changes the standard world-price diagram by raising the domestic price, increasing domestic production, reducing consumption and cutting imports.
World Price and Imports Explained: The Economics Before a Tariff
Understand what economists mean by the world price, why imports arise, and how domestic demand and supply create the import gap before a tariff is introduced.
Who Actually Pays a Tariff? Where the Money Goes and Who Bears the Cost
Who actually pays a tariff, where does the money go, and does the price automatically rise? A simple example using imported tomatoes shows how tariffs work in practice — and why the person who pays the tariff is not necessarily the person who ultimately bears its cost.
The £2 Bus Fare Cap: Who Pays the Rest?
On 22 July 2026, Prime Minister Andy Burnham announced that eligible single bus fares on participating services across England outside London would be capped at £2 in 2027. We examine the policy through A Level Economics concepts including subsidies, price ceilings, price elasticity of demand, externalities and opportunity cost.
President Trump’s Tariffs in 2026
President Trump’s 2026 tariffs are a useful real-world example of protectionism. This article explains what tariffs are, why governments use them, and how they link to A-Level Economics topics such as inflation, trade deficits, elasticity and government intervention.
Why the Bank of Japan Raised Interest Rates in 2026
Japan’s June 2026 interest rate rise is a useful real-world example for A Level Economics. It shows how monetary policy can affect inflation, exchange rates, imports, exports, capital flows and the wider global economy.
Baby Food Pouches: Why Demand Shifted Left
Negative media coverage about sugary baby food pouches caused branded baby food sales to fall sharply. This is a clear real-world example of demand shifting left, with useful links to substitutes, information failure, elasticity and government intervention.
How Celebrities Can Shift Demand: Beckham, Ronaldo and Brand Image
Celebrity influence can shift demand by changing consumer tastes, brand image and perceptions. This A-Level Economics example looks at David Beckham, Tudor watches, Cristiano Ronaldo and Coca-Cola to show how demand can rise or fall.
How GLP-1 Weight-Loss Drugs Are Changing Demand
GLP-1 weight-loss drugs such as Wegovy, Ozempic and Mounjaro are already changing demand in food, drink, beauty and health markets. This article explains how they provide a real-world A-Level Economics example of demand shifts, complements, behaviour change and cross elasticity of demand.