Full transcript
0:02Okay, so today I wanted to walk through
0:04how to deal with the 25 marker in paper
0:063. Um, a few things about a paper 3
0:08before I kind of go into the
0:09nitty-gritty. Um, first and foremost, I
0:11actually think in terms of the content
0:13for the 25 marker, it's probably the
0:15easiest of the three papers in my
0:16opinion. However, it is also the most
0:19timeressured exam by mile. You've got to
0:21be really good at your exam technique,
0:23particularly for the 5, 8, and 12. Um,
0:26but anyways, this video is specifically
0:27about the 25 marker. But firstly, I just
0:29want to dispel a couple of myths. So, in
0:30the 25 marker and only the 25 marker,
0:33are you expected to bring in both micro
0:35and macro? But it's important to
0:37separate and I want you to recognize
0:39that I want one detailed analysis just
0:41on micro. Of course, you can incorporate
0:43macro into it. That's okay. As long as
0:45your overarching point is micro and the
0:47same with macro. There's a lot of macro
0:49that is built on microeconomic
0:50principles. That's okay. As long as the
0:52overarching point is macro and the focus
0:54is predominantly macro. Now the common
0:57misconception is is that you must
0:58evaluate micro with micro and you must
1:00evaluate macro with macro. That is not
1:02true. In 90% of cases if not more it
1:05makes sense to evaluate micro with micro
1:07but you don't have to. The most
1:09important thing that you have to do is
1:10that you've got to dedicate a detailed
1:12paragraph on micro and detailed analysis
1:15on macro. All right. As always as you
1:18guys know I think the best way to
1:19understand this is through an example.
1:21Now the example that we're going to do
1:23is June 2018 paper 3. So I'm going to
1:27really show my screen and show you guys.
1:29H one more thing actually very important
1:31about the 25 marker and paper 3. The 25
1:33marker and paper 3 unlike papers one and
1:35two the data is relevant to the 25
1:37marker. You are therefore expected to
1:39incorporate the data into your answer
1:41for the 25. Whereas in paper one and two
1:43is your own real world knowledge. Paper
1:453 the data is relevant to you. So here
1:47we go. June 2018 has had Excel's
1:50favorite thing, coffee. They love
1:52coffee. They ask about it all the time.
1:53Lock specimen paper, this paper, June
1:552022, paper one. Anyways, right. So,
1:58let's have a look at the 25 marker. And
2:00I also think there's a correct and
2:02incorrect choice when it comes to the 25
2:04marker. So, our options are as
2:06follows. Evaluate the microeconomic and
2:09macroeconomic factors that may influence
2:12Starbucks's decision whether to expand
2:14in a particular country. That's the
2:15first option. or with reference to the
2:17information provided and your own
2:19knowledge, evaluate the microeconomic
2:21and macroeconomic effects of increased
2:23UK demand for coffee at branded coffee
2:27shops. Okay. Right. First things first,
2:30normally you get either a factor
2:32question or an effect or impact
2:34question. I honestly think that impacts
2:36and fact and and effects, sorry, is
2:38significantly easier to navigate than
2:40factors. So, if I had that choice, I
2:42would almost always choose effects
2:44rather than factors. Now, you might be
2:46unlucky enough that it's two factor
2:47questions. I'll do a separate video on
2:49factors another time, but for now, let's
2:51just deal with this question. So, the
2:52question we're doing is E. With
2:53reference the information provided in
2:55your own knowledge, evaluate the
2:56microeconomic and macroeconomic effects
2:58of increased UK demand for coffee at
3:00branded coffee shops. Okay. Right. I
3:01know obviously we need to use the data.
3:03I've read the data. You guys can read
3:04the data as well later and kind of
3:05incorporate it into it. But let's just
3:06go through the technique. So I need you
3:09guys to understand that the most
3:11important thing to smash the 25 marker
3:14on the micro side is I want you to be
3:16drawing a cost and revenue diagram
3:18because if you can draw a cost and
3:20revenue diagram and things are shifting
3:21it will give you so much depth in terms
3:24of what you can say. Now this is a
3:26fairly straightforward question because
3:27it tells us demand is increasing. So
3:29what is demand on a cost and revenue
3:30diagram? Well it is obviously AR and MR
3:32shifting outwards. Yeah. So let's draw
3:34that to start off with and I want to
3:35show you how many points we can draw out
3:37just from that one diagram. So let's do
3:40our systematic approach as
3:42always. I've got quantity over here,
3:44cost/ revenue over here. Right? Step
3:46one, as you should know, is marginal
3:48cost MC. And now because I know I'm
3:50going to shift out AR and MR, I'm not
3:52going to start too high up on the Y ais.
3:54I'm going to start somewhere over here.
3:57And that's going to be AR1 = D1. And
4:01this is going to be
4:04MR1. That's MR1. Right? Profit
4:06maximization occurs when MC equals MR.
4:08We're here. The price therefore is up
4:11here E1. All right. And let's draw them
4:14making supernormal
4:16profit. So we got from the quantity Q1
4:19till we hit the AC curve. As you should
4:20know, D1. And remember, especially when
4:23there's shifts in the diagram, label the
4:25corners of the areas with letters. So
4:27we're going to do that as A and that as
4:29B. Okay, so the initial super profit
4:31being made by let's say this is Costa is
4:33P1 ABC1. Okay, the the demand is
4:36increasing. It's as simple as that.
4:37There's more demand for coffee. So we're
4:39going to start at a higher point on the
4:40Y axis and just shift it parallel. So
4:43we're going to do this is
4:46AR2=
4:48D2 and this is going to be MR2 something
4:51like
4:53that. Okay, profit maximization occurs
4:55when MC equals MR. So we're back here
4:57now. This is Q2. So the output has
4:59clearly gone up. We go all the way up to
5:01the new demand curve to get the new
5:02price. So the price of course goes up
5:05P2. And finally got from the quantity Q2
5:07to hit the AC
5:09curve. Now I drew my AC curve in a very
5:12particular way to ensure that my cost
5:14went down. Yeah. And I'll explain why I
5:16did that in a second. Lastly, the
5:17corners of the areas. So I'm going to
5:19label that as D and that as E. So in
5:21other words, the profits have gone up
5:22from P1 ABC1 to P2DE C2. All right,
5:25cool. Let's chat. What is really
5:27important for you guys to understand is
5:29the cost and revenue diagram gives you
5:31significantly more depth than a standard
5:33supply and demand diagram. I have
5:34multiple things that I can now
5:35incorporate into my answer. My
5:37overarching point by the way would be
5:38something like this. So the topic
5:39sentence would be one microeconomic
5:41effect of an increase in demand for
5:42coffee is higher profits for brands such
5:44as Costa. Cool. That is my overarching
5:47topic sentence. Yeah. Now what I now
5:50want to do is as quickly as possible use
5:53the data to show the number of people
5:54that are buying coffee has gone up. And
5:56now say okay AR and ML will shift out.
5:58Draw this and summarize the key things
6:00in the diagram. The price of coffee is
6:02likely to rise from P1 to P2. Sales are
6:04likely to increase from Q1 to Q2. Now
6:07before I talk about profitability costs
6:09have gone down from C1 to C2. Why do
6:12they go down? Well, they went down. And
6:14if you got this right, well done. They
6:16go down because this firm Costa are
6:18better placed now to tap into larger
6:20economies of scale. And that opens up a
6:23whole extra chain of reasoning just for
6:25you. So what you would say is that
6:27because they're a bigger firm, they can
6:28now tap into purchasing economies of
6:30scale. For example, they can bulk buy
6:32their coffee beans in even larger
6:33quantity than they currently are. They
6:35can bulk buy the disposable cups that
6:37they use for their coffee, the milk, the
6:39sugar, anything like that. Right? These
6:40are clear examples of purchasing
6:42economies of scale that I want you to
6:44now throw in to get some application of
6:46your own knowledge as well. You can
6:47bring in your own knowledge as well. And
6:48obviously there's data as well. But the
6:50point is is that we can now say stuff
6:51like that and we're not done yet. We can
6:53continue to show off by saying oh and by
6:55tapping into these economies of scale
6:57they will be operating closer to what's
6:59that point called? Well, the bottom of
7:00the AC curve is called the mees. So
7:02we're going to say oh they're more
7:04they're operating closer to the
7:05mees. If they're operating closer to the
7:08mees they become more what? Well
7:10hopefully you're telling me that they
7:11become more productively efficient.
7:14Right? So I can now show off that I know
7:17that productive efficiency is at the
7:20bottom of the AC curve. Right? That all
7:21stemmed from this very basic diagram
7:23where AR and M are shifted outwards. And
7:25then and only then do we now bring in
7:27profitability. Well, what happens
7:28profitability wise? Obviously it goes
7:29up. But even then you're not done
7:31because whenever you talk about profits
7:32rising, I want you to now tell me what
7:34they could do with the extra profits. So
7:35for example, they could invest it into
7:37producing a wider range of coffee. Maybe
7:39improving the quality of their coffee,
7:41maybe seasonal menus like you know
7:42Christmas and things like that.
7:44Whatever. Give me an example. there's
7:45data to support it. Even better, even if
7:47there isn't, no problem. Make up
7:48examples of what they could do. And now
7:50wrap it up by saying, "And therefore,
7:52dynamic efficiency is likely to rise."
7:54Now, bear in mind, by the way, this is a
7:56very basic concept. It's just demand
7:58shifting outwards. And from that very
7:59basic thing, we have taken it and easily
8:02gone and done about 9 10 chains of
8:03reason comfortably. Yeah. And that is
8:05the level of depth I need in a 25
8:06marker. And it all stemmed from this
8:08diagram. This is why I need you guys to
8:10be really comfortable with these
8:12diagrams and be able to incorporate them
8:13into your answer for a 25 marker on
8:15paper. Right? That's our analysis. Let's
8:17evaluate. Now, there are two really good
8:19evaluations. Obviously, only do one of
8:20them, but one of them is a clue. And I
8:22want you to get in the habit of
8:23recognizing that there are clues and
8:25questions that they've already asked.
8:27I'm going to quickly show you the
8:28extract or the the
8:30questions. It's not too obvious, but it
8:34is there. If we look at the eight
8:36marker, it says, "Examine the advantages
8:39of using an indirect tax as a means of
8:41reducing the use of disposable coffee
8:43cups." Any ideas what I'm getting at?
8:46Well, if you read the data, by the way,
8:47there's a reason why they tax things.
8:49They tax demerit goods. They tax things
8:50that are basically overproduced by the
8:52market or over consumed by the market.
8:54And and so what's the problem? Well, the
8:57problem is this is it basically says 2
8:59and a half billion disposable cups are
9:01thrown away every year in the UK. That
9:03is 7 million every day. What topic is
9:07this? Well, hopefully you recognize that
9:09this is externalities and therefore that
9:11is a great eval to basically say that
9:13whilst profitability for these firms
9:15increases and that's great for them,
9:16it's really bad for the environment.
9:18They gave you the clue in the extract
9:20and often they do this where other
9:22questions that you've already answered
9:23up to that point will be hints as to
9:26what points you can now make. Yeah. So,
9:28let's quickly deal with that. What we
9:30basically would say is okay however a
9:32significant problem with an increase in
9:33the consumption of coffee is it may lead
9:35to market failure or an increase in
9:36market failure I guess yeah you now
9:38basically draw so a lot of you I I
9:40understand why your teachers may have
9:41taught you negative consumption as well
9:43as production externality is positive
9:45and XL only require you to know two
9:46diagrams when it comes to externalities
9:48as silly as that might be negative is
9:50always going to be production and
9:52positive is always consumption I know
9:53that may not makes a lot of sense but
9:55just accept it as it is and draw that so
9:57we're going to draw negative externality
9:59from an Excel perspective and it will
10:00look like this. So, we're going to go
10:03okay, I've got quantity over here,
10:07cost/benefits on the y-axis. All right,
10:10the way I do it is I kind of go through
10:12a systematic approach where I step one
10:13go to myself, okay, is a negative or
10:15positive externality, clearly negative.
10:17Is that to do with cost or benefits?
10:19Well, negative, the word is to do with
10:21cost. So, we're going to do two cost
10:22curves which are upward sloping and
10:24they're going to be slightly
10:26pivoted. Not a massive deal if you don't
10:28draw them pivoted, by the way. It can
10:29also be parallel. No problem. And then
10:30finally, if there's two upward sloping
10:32lines that follow, there must be one
10:33downward sloping line. Yeah. And that
10:35downward slipping line, I can label that
10:36immediately. It's going to be marginal
10:38private benefit is equal to marginal
10:41social benefit. Okay. There are two
10:43points of intersection. So, can you see
10:44it intersects over here and it
10:47intersects over here. All right. A
10:50negative externality is that where we're
10:52doing too little of something or too
10:53much of something. Well, negative is
10:55always where you're doing too much of a
10:57bad thing. Whereas positive is where you
10:59do too little of a good thing. Still bad
11:00then by the way. Yeah. So obviously of
11:02the two options we've got one over here
11:04and two over there. Which one represents
11:06doing too much? Logically obviously the
11:08second one. So this must be equilibrium
11:10is QE. I label that social optimum so
11:15ESO and that is P. Yeah. Okay. If I put
11:19my pen on the equilibrium because I know
11:20that is 100% the equilibrium.
11:22Equilibrium always occurs where private
11:23cost equals private benefit in any
11:25externality. Private cost is supply.
11:27Private benefit is demand. So if that
11:29line going through it has not been
11:30labeled yet, it must be private. It's
11:32MPC. This therefore is MSC. The very
11:36final thing I do is I get the welfare
11:37loss triangle by putting my pen on the
11:38equilibrium and drawing straight line up
11:41like that. Okay. Right. All we have to
11:44do and bear in mind the evaluation does
11:46not need the same level of depth as the
11:47analysis. So we're basically explaining
11:49the diagram and saying oh if more people
11:51consume um coffee there's likely to be a
11:53bigger welfare loss. I could, by the
11:55way, technically shift out the demand
11:57curve here. Don't really want you to, to
11:58be honest with you. Like, just leave
11:59this as as it is. There's no need to
12:01make it more complex than it is and
12:03explain kind of the welfare loss that
12:04arises from people throwing away their
12:06cups. Um, you know, the environmental
12:08impact. Of course, the extract will be
12:10very helpful, but more strain on the
12:11NHS. Um, it's going to result in like,
12:13you know, toxic waste. It might be bad
12:15for like fishermanmen. It might result
12:16in like, you know, the oceans getting
12:18depleted and destroyed. Blah blah blah.
12:20You get the point. Yeah. The point is
12:21you just simply explain why there's a
12:23market failure. Don't go overboard cuz
12:24you will run out of time, but be aware
12:26that that's a very solid evaluation. All
12:28right. Can I tell you the alternative
12:30evaluation? Even though obviously you
12:31just need one. Yeah. The alternative
12:33evaluation was in the examiner report
12:35and I think it's a really clever eval.
12:36What they said in the examiner report or
12:38the kid that wrote the answer in the
12:39examiner report was think about it. The
12:41UK coffee shop market and coffee shops
12:43generally that market is fairly
12:45contestable. The barriers to entry are
12:47pretty low. It's not that hard to set up
12:49a cafe. The evidence of that is that
12:51there are thousands of independent
12:52coffee jobs, right? Therefore, when
12:54there's an increase in demand for
12:56coffee, maybe the demand is actually met
12:59by an increase in supply. In other
13:01words, you might suddenly see loads of
13:03new entrance into the market and
13:04therefore the profits might be
13:06distributed between multiple different
13:07firms in which case you don't get that
13:09much more profit if at all. So, we
13:11talked about profitability rising and
13:12how they're going to be a lot better
13:13off. Well, maybe not because the
13:15barriers to entry are fairly low. You
13:17can even give the example of like Blank
13:18Street for example coming into the UK
13:19coffee shop market in the last couple of
13:20years and how they've started to sell
13:22more coffee. Gregs has started to sell
13:23way more coffee in areas like London
13:25etc. The point simply though is that
13:27because the market's contestable when
13:29there's an increase in demand there may
13:31actually also be an increase in supply
13:33in which case actually profitability may
13:34not go up that much. Is that clear? That
13:37was the alternative. I don't mind that.
13:38That works really well. I feel like this
13:39one's pretty straightforward though and
13:40it's got data to support it as well.
13:42Yeah. All right. We've done the micro
13:44side of things. Let's now deal with
13:45macro. So, how can I make a micro
13:48concept and turn it uh micro concept and
13:50turn it macro? Now, on the examiner
13:52report, the answer basically talks about
13:54consumption rising. I think that is a
13:55bit farfetched. They credited it and
13:56they're like, "Yeah, that's valid, but
13:58coffee is like a teeny tiny percentage
14:00of total consumption in the UK." Like,
14:01it's a bit ridiculous to be like, "Oh,
14:03yeah, consumption is going up." But I
14:05think a very logical one to kind of
14:06explore. And again, by the way, you know
14:08how micro I want you to basically do
14:09cost and revenue. Macro, most of the
14:12time you're going to be doing ADAS.
14:13Yeah. Right. Let's remind ourselves the
14:15components of AD. So AD as we know C
14:17plus I plus G plus open brackets X - M.
14:21Oh, okay. Right. Which of those
14:23components could be rising as a result
14:25of an increase in demand for coffee?
14:26Well, I personally think that you're
14:28going to get more TNC's like coffee
14:31shops who are based abroad like a
14:33Starbucks, like a Cafe Euro. Um I don't
14:35know if you guys know Tim Hortons for
14:36example. They're very famous and popular
14:37in Canada etc. If more people in the UK
14:40start consuming coffee, that is their
14:43signal to come and set up in the UK. And
14:45therefore, if they come and set up in
14:47the UK and they open up their franchise,
14:48they open up their coffee shop, several
14:50things happen. The first thing is is
14:51that FDI, foreign direct investment,
14:52investment is a component of AD. And so
14:54AD is likely to shift outwards. But
14:57investment is also an injection into the
14:59circular flow of income. And so there is
15:02likely to be a positive multiplier
15:03effect. Now, I would define it in words,
15:05but it's a 25 mark. I want to give you
15:07an example to add to it so that you've
15:09got more depth and you can easily take
15:11these chains of reasoning and develop
15:12them. So the definition will be positive
15:14multip this is the number of times the
15:16rise in national incomes exceeds the
15:18initial injection that caused it. But
15:21let's do that with an example. If a
15:23company like Starbucks or or Blank
15:25Street or or Tim Hortons whoever you
15:27know that's a foreign company that's in
15:29the coffee market set up in the UK what
15:32do you guys agree they're going to hire
15:33more baristas? They're going to hire
15:35more staff generally. Those individuals
15:37that are hired now have an income. And
15:38so what do they do with their income?
15:39Well, they spend it. Therefore,
15:40consumption in the economy goes
15:43uph more demand for goods and services.
15:45There is more demand for labor because
15:48labor is derived demand. I know that's a
15:49micro concept. No problem. It's okay.
15:52And you can now show off by saying that
15:53if there's more demand for labor and
15:55basically more people are employed, that
15:57reduces a particular type of
15:59unemployment. That is cyclical.
16:02Unemployment will go down. The other
16:04name by the way for cyclical in case
16:05that makes it easier to understand a
16:07process is demand deficient. What does
16:09that mean? If demand is deficient, it
16:11means a lack of demand for goods leads
16:14to a lack of demand for labor. Well, the
16:16opposite is happening now. There's more
16:17demand for goods. Therefore, there is
16:19more demand for labor. Once I've gone
16:21through and basically fleshed that out
16:23and gone through all the, you know, what
16:24the multiplier is, I can now draw it.
16:25And even in my diagram, we can show off.
16:27Why? Because we're going to shift the AD
16:29curve, but not once, twice.
16:32So I'm going to have real GDP over
16:34here and price level otherwise known as
16:37inflation over
16:39here. You should really by the way be
16:41drawing the LRS curve as a Keynesian LS
16:43curve unless you're explicitly told to
16:45draw an SRS curve like for example like
16:47an eight marker or something like that.
16:48Anyways, so we're going to have AD
16:51somewhere over here to begin with.
16:5481
16:57initial
16:5981. Here's
17:0282. But we're not done there. So that
17:04first outward shift of AD is because of
17:06the rise in foreign direct
17:08investment. But now we shift it a second
17:11time because that is the positive
17:13multiplier in action.
17:17Y3 P3. All right. Now we summarize the
17:20diagram. The key things to summarize are
17:21economic growth is rising from Y1 to Y3
17:23which may lead to higher living
17:25standards in the UK. Um there is also
17:27some demand for inflation. I have to
17:29mention you can but economic growth is
17:31the main thing I want to kind of focus
17:32on. That would be my overarching point.
17:34Now at that point normally that's enough
17:35debt that is actually sufficient. We've
17:37developed it in decent number of chains
17:38of reasoning. However, on purpose, I'm
17:41going to add one more layer because this
17:43is why you plan in advance before you
17:45jump into these essays cuz you would
17:47have read the data for the 5, 8, and 12.
17:49And one of the data sets I will show you
17:51guys to kind of give you a
17:53clue. One of the data sets all about
17:56Starbucks and yeah, whether they're
17:58actually a loss-making business. Yeah.
18:01Um, so it
18:04basically explains in the data that
18:06Starbucks have paid practically no tax.
18:09Yeah, there's a process called transfer
18:11pricing where they move their profits to
18:13a country where taxes are much lower. So
18:15it looks like they're lossmaking in the
18:17UK. Yeah, it explains this by the way in
18:20very like decent detail here. Yeah.
18:22um that this is where it says the main
18:24reason why Starbucks has reported
18:25persistent losses in the UK is not due
18:27to a lack of demand for its coffee but
18:29to minimize its tax bill.
18:31I'm going to deal with that as
18:32evaluation by the way and therefore in
18:34order for me to talk about it as a
18:34valuation it makes more sense then after
18:36I said economic growth has gone up then
18:38also say the government are going to
18:39collect more tax revenue because there's
18:40going to be more income tax but most
18:42importantly more corporation tax these
18:44TNC's that set up like Starbucks are
18:46going to pay tax and the government now
18:48can use that tax revenue to invest into
18:50education and training and increase the
18:51productive capacity of the economy no
18:53need to draw the diagram you've already
18:54shifted out AD twice that's enough
18:55that's enough depth yeah I added that
18:58extra layer just so I can evaluate it so
19:00So then now I can be be like hm
19:02according to extract a though may not be
19:04making that much more profit because
19:06this is the thing is that however the
19:08increased uh increased foreign direct
19:10investment may may not lead to extra
19:12revenue for the government as extract a
19:14states and then you talk about how
19:16basically there's there's a few quotes
19:17in here by the way that you could use
19:19about how they take advantage of things
19:20called transfer pricing where they move
19:22their profits to another part of the
19:24world normally it's Ireland but I think
19:25in this case it's the the Netherlands.
19:27Yeah. in order for them to avoid paying
19:29taxes in the UK. The government might
19:30not make that much more revenue. Yeah.
19:32Now, that is already very good. Can I
19:34add one more kind of cherry on top? The
19:36last cherry on top to just add a bit
19:38more depth to that evaluation is to say
19:39that actually even if there's an
19:41increase in demand for coffee in the UK
19:43because the UK decided to leave the EU
19:45and because of the fact that we no
19:47longer have free trade with the EU as of
19:49as of today anyway um that might deter
19:51them from setting up they might be like
19:52reluctant to actually set up in the UK
19:55even with the increased demand for
19:56coffee. They may not find it worthwhile
19:58setting up because importing the coffee
20:00beans might be expensive now. It might
20:02be that you know they wanted to
20:04basically set up and sell their products
20:05and services across the EU like as in
20:08obviously not not hot coffee but like
20:10the example instant coffee and stuff
20:11like that that Starbucks also sell
20:13anyways the point is is that Brexit may
20:15deter TNC's from setting up they may not
20:17want to set up in the UK easy that is it
20:20and all you need to do now and the
20:21judgment is basically something I mean
20:23the judgment by the way as long as
20:24you're making some concerted effort
20:25actually like having some sort of
20:26balanced opinion about the whole thing
20:28don't say I will by the way they don't
20:29like that so it'll be something like on
20:30the balance of evidence And the
20:32microeconomic impact of an increase in
20:33demand for coffee is likely to be more
20:35prevalent than the macroeconomic effect.
20:37Yeah. Like if you think about it on a
20:39micro level, yeah, like big time
20:40profitability could be rising. On a
20:42macro level, like this is not a massive
20:44market in the grand scheme of things.
20:45Like the coffee shop market is not going
20:47to account for like, you know, it'll be
20:49less than half a percent of the UK's
20:50GDP. Probably even less than that, but
20:52significantly less than that. Yeah. So
20:54anyways, you basically say that on a
20:56macro basis, the coffee shop market is
20:58not large enough to have a significant
20:59impact on aggregate demand. Um however
21:01on a micro basis it may result in new
21:03entrance entering the market. Um but it
21:06also could lead to bigger you know
21:07market failure. So the government should
21:09monitor this and incentivize individuals
21:12to turn to recycling schemes um to limit
21:14the extent of the market failure
21:15something like that which is basically
21:17your policy advice to the government to
21:18be like okay people are buying more
21:20coffee that's going to be bad for the
21:21environment watch out basically deal
21:23with it. Yeah. Right. The main thing I
21:25wanted to get across in this video
21:26though was to ensure that you understood
21:27the technique in terms of what I need
21:29you guys to do for the 25 mark for paper
21:30three. And yeah, hopefully that was
21:33help.