Hey Genies, 👋

Ever wonder what separates average A-level Economics students from the ones who smash their grades consistently?

Here's exactly what they do differently:

✅ 1) They Get Going (Early!)
Top students don't wait around.They don't say "I'll start next month" or "I'll catch up later."

If you're entering Year 12 or starting Year 13 soon, now is exactly when you set the tone.

Don't delay.

Start now - be proactive from day one.

✅ 2) They Get Good (By Getting the Right Help)

Listen, nobody gets an A* entirely on their own.

Great students seek support from the right places early on.

They ask for guidance and are not afraid to admit they don’t know something.

You have to choose your mentors, your teachers, your resources wisely

(Hint: EdGenie exists precisely for this!).

Don't wait until mocks to find out you're doing it wrong.

✅ 3) They Get Smart (Quality, Consistency, Variety)

Great students don't just revise more; they revise smarter.

They improve their quality by mastering exam technique and knowing exactly what examiners look for.

They consistently practice question after question.

They deliberately test themselves with a variety of question types and scenarios, so they never get caught out.

This is real revision—not just copying notes from textbooks or watching YouTube passively.

So, what's your next move?

At EdGenie, we've built an entire system around these three principles—Early action, smart guidance, and efficient revision techniques.

We guide students like you daily, turning Bs and Cs into A/A* results every single year.

Join EdGenie now to start your path to becoming a top-tier A-level Economics student.

You’ve got this—let’s get to work!💪

Emre

🌸 A Fragrant World of Ingredients: The perfume world thrives on both natural ingredients like centifolia rose 🌹 and synthetic molecules 🧪, which improve scent longevity, reduce animal harm, and are crucial to mass production.

🌦️ Weather Woes and Regulatory Rainclouds: Suppliers face challenges like crop failures (e.g. Indian ginger) due to climate change 🌍 and stricter safety and traceability rules 📜, increasing production pressures and costs.

🏢 The Big Four Rule the Market: Four multinational firms—IFF 🇺🇸, Symrise 🇩🇪, dsm-firmenich 🇨🇭, and Givaudan 🇨🇭—control around two-thirds of the global fragrance and flavour industry 💼, supplying giants like YSL, P&G, and Coca-Cola.

🤫 A Culture of Secrecy: These firms fiercely guard their scent formulas 🔒 and compete intensely for business briefs 🧾, maintaining a cloak-and-dagger atmosphere within the luxury and consumer goods supply chains.

👮 Trustbusters on the Trail: Regulators in the EU, Switzerland, and UK have launched investigations into possible price-fixing and market-sharing practices 🚨. Antitrust lawsuits and class actions are also underway in the US ⚖️.

💸 Lawsuits and Legal Perfume Wars: Unilever is suing three of the firms and has pledged €100m to build its own fragrance capacity 🧴, while the US Justice Department may be preparing its own case 🧑‍⚖️.

📉 Shares Slip Despite Booming Sales: Despite average sales growth of nearly 6% in early 2025 📈, the firms' share prices have fallen by 9% on average 📉—likely due to legal risks and reputational damage.

👃 Gen Z Keeps It Fresh: Perfume is booming thanks to Gen Z’s enthusiasm 💃, with over 80% using it multiple times a week. But the rise of “dupes” (copycat fragrances) is squeezing market leaders 🧴 vs 💸.

Q. Explain how the fragrance industry illustrates characteristics of an oligopoly.
A. An oligopoly is a market dominated by a few large firms, exhibiting interdependence, high barriers to entry, and often non-price competition. In the fragrance industry, four major firms—IFF, Symrise, Givaudan, and dsm-firmenich—control around two-thirds of global market share, indicating high concentration. These firms invest heavily in R&D, produce in-house synthetic ingredients, and guard proprietary formulas, making entry difficult. They also serve both luxury and functional markets (e.g., YSL perfumes and P&G detergents), competing for brand contracts. The secrecy and limited price transparency further support oligopolistic features. Their market behaviour suggests mutual awareness and strategic decision-making.

Q. Evaluate the impact of potential collusion among major fragrance firms on consumers and smaller suppliers.
A. If fragrance firms collude to fix prices or divide markets, allocative inefficiency may arise—prices exceed marginal cost, harming consumer welfare. Consumers might face higher prices for perfumes and consumer goods with embedded fragrances. Smaller suppliers may be excluded from key contracts or squeezed on pricing terms, reducing competition. However, collusion can bring stability and allow firms to reinvest in innovation, such as synthetic ingredients. If collusion is proven, fines and regulation may restore competition. The antitrust probes and lawsuits suggest harm was significant enough to merit scrutiny, though oligopolistic stability can sometimes yield dynamic efficiency.

Q. Discuss whether the behaviour of firms like Givaudan and IFF supports or contradicts the kinked demand curve theory.
A. The kinked demand curve suggests price rigidity in oligopolies due to asymmetric response expectations: rivals will match price cuts but not increases. The fragrance firms appear to avoid overt price wars and compete through product secrecy, R&D, and long-term contracts—implying non-price competition is dominant. Allegations of price-fixing suggest they may have artificially stabilised prices, reinforcing the kinked curve's prediction of price stickiness. However, if they had pricing power through secrecy rather than strategic fear of retaliation, the kink model might be insufficient. Overall, the evidence supports price rigidity but perhaps due to collusion, not interdependent pricing expectations alone.

Q. Explain how high barriers to entry help maintain market power in the global fragrance industry.
A. Barriers to entry restrict new firms from competing, allowing incumbents to maintain abnormal profits. In the fragrance industry, barriers include capital-intensive R&D, chemical synthesis capabilities, and regulatory compliance (e.g., traceability). Firms also rely on trade secrets to protect formulas and in-house ingredient production to ensure exclusivity. This deters new entrants and reduces market contestability. Additionally, economies of scale and relationships with global brands (e.g., Coca-Cola, Hugo Boss) make it harder for new firms to gain traction. These structural barriers preserve the oligopoly and allow firms to set prices above marginal cost.

Infographic of the Week

As of December 2023, Venezuela leads the world with 303 billion barrels of proven oil reserves, followed closely by Saudi Arabia (267bn) and Iran (209bn), all key OPEC members. While Saudi Arabia maintains high output due to low production costs, Venezuela struggles with sanctions and economic collapse despite its vast reserves. Canada, a non-OPEC country, ranks fourth, while the U.S. and Russia also feature among the top 10. The Middle East dominates oil reserves, with the Gulf region holding a third of the global total. Despite geopolitical tensions—especially involving Iran—major disruptions to oil flows have been avoided. However, potential threats like the closure of the Strait of Hormuz could still shake global markets. Overall, the top 10 oil-rich nations collectively hold 1.5 trillion barrels of oil, underscoring their central role in global energy dynamics.

Chart of the Week

In 2024, China led global green energy investment by a wide margin, funnelling $290.4 billion into renewables—almost three times that of the U.S. ($96.7 billion) and far ahead of the EU & UK ($114.2 billion). While EU investments surged in 2023, they dropped sharply in 2024, highlighting volatility. In contrast, regions like Asia Pacific (excluding China), Africa, and the Middle East showed steady investment growth. Globally, renewable energy investment reached $728 billion, heavily concentrated in solar and EV sectors. Despite this progress, REN21 reports that the world remains well short—only at 48%—of the annual investment needed to stay on track for net zero emissions by 2050.

Macroeconomic Data

Emre Aksahin

Chief Learning Officer at Edgenie

Hey Genies, 👋

I got this exact question from one of you recently:

"This sounds silly, but how am I meant to perfect exam technique if there are gaps in my knowledge?"

Brilliant question.

Here's the truth:

Knowing your Economics content inside out isn’t enough. 🙅‍♂️

Why?

Because the examiner isn’t looking for everything you know.

They're looking for your ability to apply it precisely to the question at hand.

Take this typical exam question as an example:

"Evaluate supply-side policies the UK government can use to boost productivity."

Simply knowing market-based or interventionist supply-side policies won’t get you full marks here.

You have to link them explicitly to productivity.

And not just productivity in general—specifically the UK's lagging productivity growth.

So, what's the solution?

✅ When learning content, always link it immediately to potential exam questions.

✅ Practise structuring and writing answers as soon as you cover a topic—don’t wait for perfect knowledge.

✅ Identify gaps by doing questions FIRST, then revise to fill those gaps.

At EdGenie, we teach you how to master this exact approach:

👉 Precisely how to interpret questions.

👉 How to structure your answers around application and context.

👉 How to turn partial knowledge into full marks.

So if you’re stuck trying to perfect your exam technique because of knowledge gaps, we’ve got your back.

Don't just memorise content—master applying it!

Ready to get rid of those gaps and master your exam technique?

Join EdGenie and let’s make that happen.

Cheers,

Emre

💸 Big Investment Incoming: Asda is planning to invest a “pretty significant war chest” to lower prices and add more staff on shop floors. 🛒

📉 Sales & Market Share Slide: The chain is fighting declining sales and market share, despite food price inflation of over 3% last year. 📊

💰 Profit Will Dip – But On Purpose: Chairman Allan Leighton says it’s an “investment warning, not a profit warning” – profits will drop in the short term to fund long-term growth. 💼

🛍️ Focus on Growing Sales: The goal is to boost profits by increasing sales, not cutting costs alone. 📈

🏪 Store Footprint Still Large: Asda operates over 580 supermarkets, nearly 500 convenience stores, and 769 petrol forecourts across the UK. 🏬

📉 Sales Slightly Down, Profits Up: Sales dropped by about 1% to £21.7bn, but underlying profits (excluding debt) rose 6% to £1.1bn. 💷

🥊 Tough Competition: Asda is under pressure from Tesco, Sainsbury’s, and fast-growing Aldi and Lidl. ⚔️

🧺 Tackling Price & Shelf Issues: Leighton highlights the need to fix pricing, stock gaps, and product range – balancing budget and premium lines. 🧃

🏷️ Everyday Low Prices Return: Asda will bring back its “Asda Price” branding next year, dropping complex promotions. 🛍️

👥 More Staff, More Hours: £43m is being spent to add 5.9 million more working hours to improve customer service in stores. 👨‍👩‍👧‍👦

💻 IT Transition Woes: The switch from Walmart’s systems is delayed, costing over £800m and causing shelf stock issues. 🖥️

🧑‍💼 Job Cuts in Tech: Around 200 roles tied to IT changes are being cut, with more tech job reductions expected later in the year. 🧾

🕰️ Long Road to Recovery: Leighton says it could take up to five years to fully turn Asda around after its £6.8bn buyout in 2021. ⏳

🧑‍🔍 Still No New CEO: The search for a chief executive continues, but Leighton says they’re taking their time to find the right fit. 🧐

💼 Strong Assets, Big Debts: Asda has £800m in cash and £9bn in assets, with £3.8bn in debt (excluding leases). Some car parks and land are being sold as routine business. 💳

📉 Debt Burden Hurts Competitiveness: Interest rates are easing, which helps, but £470m in debt repayments last year affected Asda’s ability to compete. 📉

Q. Evaluate whether Asda’s pricing strategy could lead to predatory pricing or limit pricing outcomes in the market.
A. Asda’s everyday low pricing strategy may resemble limit pricing, deterring new entrants like smaller convenience chains by maintaining prices just above marginal cost. However, unless prices fall below average variable cost, it is unlikely to be predatory pricing, which is illegal and unsustainable. Given Asda’s need to protect market share from Aldi and Lidl, the pricing strategy likely aims to signal low-cost efficiency, rather than drive rivals out. Nonetheless, competition authorities may scrutinise intent and outcomes if rivals are significantly weakened.

Q. To what extent does Asda’s strategy help address allocative and productive inefficiency in the supermarket industry?
A. By lowering prices and improving in-store service, Asda may enhance allocative efficiency, bringing prices closer to marginal cost and better matching consumer preferences. Productive efficiency could improve if economies of scale are achieved through increased sales volumes. However, if increased staffing costs outweigh gains, cost structures may rise, reducing overall efficiency. The success of the strategy thus depends on whether productivity gains offset investment costs in the long term.

Q. Assess whether underinvestment in IT infrastructure could be seen as a form of market failure.
A. Underinvestment in IT systems can be seen as a form of productive inefficiency, leading to stock shortages and poor consumer experience. If this results from information failure or misaligned incentives post-ownership change, it could represent a market failure. Moreover, if consumer welfare is significantly reduced due to persistent stock gaps, there’s a potential negative externality affecting broader retail standards. However, since this is a firm-specific issue, it may not constitute a widespread market failure unless industry-wide.

Q. Analyse how Asda’s shift to “everyday low pricing” could affect the price elasticity of demand for its products.
A. Everyday low pricing may reduce perceived price variation, potentially making demand more price inelastic, as consumers become less responsive to individual price changes. However, by promoting price consistency, it could attract more budget-conscious shoppers, increasing elasticity for particular product categories. The overall impact depends on substitutability and brand loyalty—if rivals offer similar value, elasticity could rise despite the pricing shift.

Q. Using a cost and revenue diagram, illustrate and explain the possible impact of price cuts on Asda’s total revenue and profits.
A. A cost and revenue diagram would show a movement down the demand curve, potentially increasing total revenue if demand is elastic. However, average revenue may fall faster than average cost, squeezing profit margins. In the short term, profits may decline, but if sales volume grows significantly and fixed costs are spread more efficiently, long-run profits could improve. The outcome hinges on cost elasticity and how well additional sales offset the lower price per unit.

Q. Using the kinked demand curve theory, analyse why Asda may be reluctant to increase prices, even during periods of high inflation.
A. Under kinked demand curve theory, firms in oligopolies expect rivals to ignore price increases but quickly match price cuts, creating a kink in the demand curve and price rigidity. Asda may fear loss of market share if it raises prices while Tesco or Aldi do not follow suit. Hence, it prefers holding prices steady despite inflation, absorbing cost pressures instead of risking consumer defection, which explains reluctance to pass costs on to shoppers.

Q. Evaluate how increased investment in staff and lower prices can be seen as forms of non-price competition in an oligopolistic market.
A. Improved staffing enhances customer service quality, differentiating Asda’s offering beyond price and building brand loyalty—a key form of non-price competition in oligopolies. Everyday low pricing, though price-based, can also signal value reliability, fostering consumer trust without constant promotions. These strategies help avoid destructive price wars and instead compete on experience and perception. However, rivals may imitate these efforts, reducing their impact unless Asda can maintain a sustainable service advantage.

Infographic of the Week

In 2023, China led the world with the largest trade surplus, reaching $593.9 billion—more than the combined surpluses of the next three countries—driven by its booming export sector amidst sluggish domestic demand. Germany followed in second place, with a $249.9 billion surplus largely attributed to its automotive exports, particularly to the United States. Ireland, Singapore, and Saudi Arabia also featured prominently in the top rankings, with the latter bolstered by its crude oil exports. Notably, five of the top ten surplus nations were European, highlighting the continent’s strong export presence. The data, sourced from the World Bank, reflects shifting global trade patterns amid rising geopolitical tensions and potential trade barriers, particularly between the U.S., China, and the EU.

Chart of the Week

Over the last five decades, global education levels have seen remarkable progress, particularly for girls. However, gender disparities in lower secondary school completion still persist across regions. According to World Bank data from 2018 to 2023, some countries still exhibit stark inequalities. In Afghanistan, for instance, girls were significantly underrepresented, with a -30.4 percentage point gap. Other countries such as Iceland, Albania, Mauritius, and the Democratic Republic of Congo also showed fewer girls completing eighth grade. Conversely, several countries reveal a reverse gender gap, where boys are underrepresented—most notably in the Cayman Islands (34.5 p.p. gap), Tuvalu, Sierra Leone, Palau, and Suriname. Encouragingly, 22 economies, including Turkey and Peru, reported near parity. Yet, lagging data and political shifts, like the Taliban's impact on girls’ education in Afghanistan, underscore the ongoing need for focused policy efforts to ensure equal educational access for all children, regardless of gender.

Macroeconomic Data

Emre Aksahin

Chief Learning Officer at Edgenie

Hey Genies, 👋

I got this exact question from one of you recently:

"This sounds silly, but how am I meant to perfect exam technique if there are gaps in my knowledge?"

Brilliant question.

Here's the truth:

Knowing your Economics content inside out isn’t enough. 🙅‍♂️

Why?

Because the examiner isn’t looking for everything you know.

They're looking for your ability to apply it precisely to the question at hand.

Take this typical exam question as an example:

"Evaluate supply-side policies the UK government can use to boost productivity."

Simply knowing market-based or interventionist supply-side policies won’t get you full marks here.

You have to link them explicitly to productivity.

And not just productivity in general—specifically the UK's lagging productivity growth.

So, what's the solution?

✅ When learning content, always link it immediately to potential exam questions.

✅ Practise structuring and writing answers as soon as you cover a topic—don’t wait for perfect knowledge.

✅ Identify gaps by doing questions FIRST, then revise to fill those gaps.

At EdGenie, we teach you how to master this exact approach:

👉 Precisely how to interpret questions.

👉 How to structure your answers around application and context.

👉 How to turn partial knowledge into full marks.

So if you’re stuck trying to perfect your exam technique because of knowledge gaps, we’ve got your back.

Don't just memorise content—master applying it!

Ready to get rid of those gaps and master your exam technique?

Join EdGenie and let’s make that happen.

Cheers,

Emre

💸 Big Investment Incoming: Asda is planning to invest a “pretty significant war chest” to lower prices and add more staff on shop floors. 🛒

📉 Sales & Market Share Slide: The chain is fighting declining sales and market share, despite food price inflation of over 3% last year. 📊

💰 Profit Will Dip – But On Purpose: Chairman Allan Leighton says it’s an “investment warning, not a profit warning” – profits will drop in the short term to fund long-term growth. 💼

🛍️ Focus on Growing Sales: The goal is to boost profits by increasing sales, not cutting costs alone. 📈

🏪 Store Footprint Still Large: Asda operates over 580 supermarkets, nearly 500 convenience stores, and 769 petrol forecourts across the UK. 🏬

📉 Sales Slightly Down, Profits Up: Sales dropped by about 1% to £21.7bn, but underlying profits (excluding debt) rose 6% to £1.1bn. 💷

🥊 Tough Competition: Asda is under pressure from Tesco, Sainsbury’s, and fast-growing Aldi and Lidl. ⚔️

🧺 Tackling Price & Shelf Issues: Leighton highlights the need to fix pricing, stock gaps, and product range – balancing budget and premium lines. 🧃

🏷️ Everyday Low Prices Return: Asda will bring back its “Asda Price” branding next year, dropping complex promotions. 🛍️

👥 More Staff, More Hours: £43m is being spent to add 5.9 million more working hours to improve customer service in stores. 👨‍👩‍👧‍👦

💻 IT Transition Woes: The switch from Walmart’s systems is delayed, costing over £800m and causing shelf stock issues. 🖥️

🧑‍💼 Job Cuts in Tech: Around 200 roles tied to IT changes are being cut, with more tech job reductions expected later in the year. 🧾

🕰️ Long Road to Recovery: Leighton says it could take up to five years to fully turn Asda around after its £6.8bn buyout in 2021. ⏳

🧑‍🔍 Still No New CEO: The search for a chief executive continues, but Leighton says they’re taking their time to find the right fit. 🧐

💼 Strong Assets, Big Debts: Asda has £800m in cash and £9bn in assets, with £3.8bn in debt (excluding leases). Some car parks and land are being sold as routine business. 💳

📉 Debt Burden Hurts Competitiveness: Interest rates are easing, which helps, but £470m in debt repayments last year affected Asda’s ability to compete. 📉

Q. Evaluate whether Asda’s pricing strategy could lead to predatory pricing or limit pricing outcomes in the market.
A. Asda’s everyday low pricing strategy may resemble limit pricing, deterring new entrants like smaller convenience chains by maintaining prices just above marginal cost. However, unless prices fall below average variable cost, it is unlikely to be predatory pricing, which is illegal and unsustainable. Given Asda’s need to protect market share from Aldi and Lidl, the pricing strategy likely aims to signal low-cost efficiency, rather than drive rivals out. Nonetheless, competition authorities may scrutinise intent and outcomes if rivals are significantly weakened.

Q. To what extent does Asda’s strategy help address allocative and productive inefficiency in the supermarket industry?
A. By lowering prices and improving in-store service, Asda may enhance allocative efficiency, bringing prices closer to marginal cost and better matching consumer preferences. Productive efficiency could improve if economies of scale are achieved through increased sales volumes. However, if increased staffing costs outweigh gains, cost structures may rise, reducing overall efficiency. The success of the strategy thus depends on whether productivity gains offset investment costs in the long term.

Q. Assess whether underinvestment in IT infrastructure could be seen as a form of market failure.
A. Underinvestment in IT systems can be seen as a form of productive inefficiency, leading to stock shortages and poor consumer experience. If this results from information failure or misaligned incentives post-ownership change, it could represent a market failure. Moreover, if consumer welfare is significantly reduced due to persistent stock gaps, there’s a potential negative externality affecting broader retail standards. However, since this is a firm-specific issue, it may not constitute a widespread market failure unless industry-wide.

Q. Analyse how Asda’s shift to “everyday low pricing” could affect the price elasticity of demand for its products.
A. Everyday low pricing may reduce perceived price variation, potentially making demand more price inelastic, as consumers become less responsive to individual price changes. However, by promoting price consistency, it could attract more budget-conscious shoppers, increasing elasticity for particular product categories. The overall impact depends on substitutability and brand loyalty—if rivals offer similar value, elasticity could rise despite the pricing shift.

Q. Using a cost and revenue diagram, illustrate and explain the possible impact of price cuts on Asda’s total revenue and profits.
A. A cost and revenue diagram would show a movement down the demand curve, potentially increasing total revenue if demand is elastic. However, average revenue may fall faster than average cost, squeezing profit margins. In the short term, profits may decline, but if sales volume grows significantly and fixed costs are spread more efficiently, long-run profits could improve. The outcome hinges on cost elasticity and how well additional sales offset the lower price per unit.

Q. Using the kinked demand curve theory, analyse why Asda may be reluctant to increase prices, even during periods of high inflation.
A. Under kinked demand curve theory, firms in oligopolies expect rivals to ignore price increases but quickly match price cuts, creating a kink in the demand curve and price rigidity. Asda may fear loss of market share if it raises prices while Tesco or Aldi do not follow suit. Hence, it prefers holding prices steady despite inflation, absorbing cost pressures instead of risking consumer defection, which explains reluctance to pass costs on to shoppers.

Q. Evaluate how increased investment in staff and lower prices can be seen as forms of non-price competition in an oligopolistic market.
A. Improved staffing enhances customer service quality, differentiating Asda’s offering beyond price and building brand loyalty—a key form of non-price competition in oligopolies. Everyday low pricing, though price-based, can also signal value reliability, fostering consumer trust without constant promotions. These strategies help avoid destructive price wars and instead compete on experience and perception. However, rivals may imitate these efforts, reducing their impact unless Asda can maintain a sustainable service advantage.

Infographic of the Week

In 2023, China led the world with the largest trade surplus, reaching $593.9 billion—more than the combined surpluses of the next three countries—driven by its booming export sector amidst sluggish domestic demand. Germany followed in second place, with a $249.9 billion surplus largely attributed to its automotive exports, particularly to the United States. Ireland, Singapore, and Saudi Arabia also featured prominently in the top rankings, with the latter bolstered by its crude oil exports. Notably, five of the top ten surplus nations were European, highlighting the continent’s strong export presence. The data, sourced from the World Bank, reflects shifting global trade patterns amid rising geopolitical tensions and potential trade barriers, particularly between the U.S., China, and the EU.

Chart of the Week

Over the last five decades, global education levels have seen remarkable progress, particularly for girls. However, gender disparities in lower secondary school completion still persist across regions. According to World Bank data from 2018 to 2023, some countries still exhibit stark inequalities. In Afghanistan, for instance, girls were significantly underrepresented, with a -30.4 percentage point gap. Other countries such as Iceland, Albania, Mauritius, and the Democratic Republic of Congo also showed fewer girls completing eighth grade. Conversely, several countries reveal a reverse gender gap, where boys are underrepresented—most notably in the Cayman Islands (34.5 p.p. gap), Tuvalu, Sierra Leone, Palau, and Suriname. Encouragingly, 22 economies, including Turkey and Peru, reported near parity. Yet, lagging data and political shifts, like the Taliban's impact on girls’ education in Afghanistan, underscore the ongoing need for focused policy efforts to ensure equal educational access for all children, regardless of gender.

Macroeconomic Data

Emre Aksahin

Chief Learning Officer at Edgenie

Hey Genies, 👋

I got this exact question from one of you recently:

"This sounds silly, but how am I meant to perfect exam technique if there are gaps in my knowledge?"

Brilliant question.

Here's the truth:

Knowing your Economics content inside out isn’t enough. 🙅‍♂️

Why?

Because the examiner isn’t looking for everything you know.

They're looking for your ability to apply it precisely to the question at hand.

Take this typical exam question as an example:

"Evaluate supply-side policies the UK government can use to boost productivity."

Simply knowing market-based or interventionist supply-side policies won’t get you full marks here.

You have to link them explicitly to productivity.

And not just productivity in general—specifically the UK's lagging productivity growth.

So, what's the solution?

✅ When learning content, always link it immediately to potential exam questions.

✅ Practise structuring and writing answers as soon as you cover a topic—don’t wait for perfect knowledge.

✅ Identify gaps by doing questions FIRST, then revise to fill those gaps.

At EdGenie, we teach you how to master this exact approach:

👉 Precisely how to interpret questions.

👉 How to structure your answers around application and context.

👉 How to turn partial knowledge into full marks.

So if you’re stuck trying to perfect your exam technique because of knowledge gaps, we’ve got your back.

Don't just memorise content—master applying it!

Ready to get rid of those gaps and master your exam technique?

Join EdGenie and let’s make that happen.

Cheers,

Emre

💸 Big Investment Incoming: Asda is planning to invest a “pretty significant war chest” to lower prices and add more staff on shop floors. 🛒

📉 Sales & Market Share Slide: The chain is fighting declining sales and market share, despite food price inflation of over 3% last year. 📊

💰 Profit Will Dip – But On Purpose: Chairman Allan Leighton says it’s an “investment warning, not a profit warning” – profits will drop in the short term to fund long-term growth. 💼

🛍️ Focus on Growing Sales: The goal is to boost profits by increasing sales, not cutting costs alone. 📈

🏪 Store Footprint Still Large: Asda operates over 580 supermarkets, nearly 500 convenience stores, and 769 petrol forecourts across the UK. 🏬

📉 Sales Slightly Down, Profits Up: Sales dropped by about 1% to £21.7bn, but underlying profits (excluding debt) rose 6% to £1.1bn. 💷

🥊 Tough Competition: Asda is under pressure from Tesco, Sainsbury’s, and fast-growing Aldi and Lidl. ⚔️

🧺 Tackling Price & Shelf Issues: Leighton highlights the need to fix pricing, stock gaps, and product range – balancing budget and premium lines. 🧃

🏷️ Everyday Low Prices Return: Asda will bring back its “Asda Price” branding next year, dropping complex promotions. 🛍️

👥 More Staff, More Hours: £43m is being spent to add 5.9 million more working hours to improve customer service in stores. 👨‍👩‍👧‍👦

💻 IT Transition Woes: The switch from Walmart’s systems is delayed, costing over £800m and causing shelf stock issues. 🖥️

🧑‍💼 Job Cuts in Tech: Around 200 roles tied to IT changes are being cut, with more tech job reductions expected later in the year. 🧾

🕰️ Long Road to Recovery: Leighton says it could take up to five years to fully turn Asda around after its £6.8bn buyout in 2021. ⏳

🧑‍🔍 Still No New CEO: The search for a chief executive continues, but Leighton says they’re taking their time to find the right fit. 🧐

💼 Strong Assets, Big Debts: Asda has £800m in cash and £9bn in assets, with £3.8bn in debt (excluding leases). Some car parks and land are being sold as routine business. 💳

📉 Debt Burden Hurts Competitiveness: Interest rates are easing, which helps, but £470m in debt repayments last year affected Asda’s ability to compete. 📉

Q. Evaluate whether Asda’s pricing strategy could lead to predatory pricing or limit pricing outcomes in the market.
A. Asda’s everyday low pricing strategy may resemble limit pricing, deterring new entrants like smaller convenience chains by maintaining prices just above marginal cost. However, unless prices fall below average variable cost, it is unlikely to be predatory pricing, which is illegal and unsustainable. Given Asda’s need to protect market share from Aldi and Lidl, the pricing strategy likely aims to signal low-cost efficiency, rather than drive rivals out. Nonetheless, competition authorities may scrutinise intent and outcomes if rivals are significantly weakened.

Q. To what extent does Asda’s strategy help address allocative and productive inefficiency in the supermarket industry?
A. By lowering prices and improving in-store service, Asda may enhance allocative efficiency, bringing prices closer to marginal cost and better matching consumer preferences. Productive efficiency could improve if economies of scale are achieved through increased sales volumes. However, if increased staffing costs outweigh gains, cost structures may rise, reducing overall efficiency. The success of the strategy thus depends on whether productivity gains offset investment costs in the long term.

Q. Assess whether underinvestment in IT infrastructure could be seen as a form of market failure.
A. Underinvestment in IT systems can be seen as a form of productive inefficiency, leading to stock shortages and poor consumer experience. If this results from information failure or misaligned incentives post-ownership change, it could represent a market failure. Moreover, if consumer welfare is significantly reduced due to persistent stock gaps, there’s a potential negative externality affecting broader retail standards. However, since this is a firm-specific issue, it may not constitute a widespread market failure unless industry-wide.

Q. Analyse how Asda’s shift to “everyday low pricing” could affect the price elasticity of demand for its products.
A. Everyday low pricing may reduce perceived price variation, potentially making demand more price inelastic, as consumers become less responsive to individual price changes. However, by promoting price consistency, it could attract more budget-conscious shoppers, increasing elasticity for particular product categories. The overall impact depends on substitutability and brand loyalty—if rivals offer similar value, elasticity could rise despite the pricing shift.

Q. Using a cost and revenue diagram, illustrate and explain the possible impact of price cuts on Asda’s total revenue and profits.
A. A cost and revenue diagram would show a movement down the demand curve, potentially increasing total revenue if demand is elastic. However, average revenue may fall faster than average cost, squeezing profit margins. In the short term, profits may decline, but if sales volume grows significantly and fixed costs are spread more efficiently, long-run profits could improve. The outcome hinges on cost elasticity and how well additional sales offset the lower price per unit.

Q. Using the kinked demand curve theory, analyse why Asda may be reluctant to increase prices, even during periods of high inflation.
A. Under kinked demand curve theory, firms in oligopolies expect rivals to ignore price increases but quickly match price cuts, creating a kink in the demand curve and price rigidity. Asda may fear loss of market share if it raises prices while Tesco or Aldi do not follow suit. Hence, it prefers holding prices steady despite inflation, absorbing cost pressures instead of risking consumer defection, which explains reluctance to pass costs on to shoppers.

Q. Evaluate how increased investment in staff and lower prices can be seen as forms of non-price competition in an oligopolistic market.
A. Improved staffing enhances customer service quality, differentiating Asda’s offering beyond price and building brand loyalty—a key form of non-price competition in oligopolies. Everyday low pricing, though price-based, can also signal value reliability, fostering consumer trust without constant promotions. These strategies help avoid destructive price wars and instead compete on experience and perception. However, rivals may imitate these efforts, reducing their impact unless Asda can maintain a sustainable service advantage.

Infographic of the Week

In 2023, China led the world with the largest trade surplus, reaching $593.9 billion—more than the combined surpluses of the next three countries—driven by its booming export sector amidst sluggish domestic demand. Germany followed in second place, with a $249.9 billion surplus largely attributed to its automotive exports, particularly to the United States. Ireland, Singapore, and Saudi Arabia also featured prominently in the top rankings, with the latter bolstered by its crude oil exports. Notably, five of the top ten surplus nations were European, highlighting the continent’s strong export presence. The data, sourced from the World Bank, reflects shifting global trade patterns amid rising geopolitical tensions and potential trade barriers, particularly between the U.S., China, and the EU.

Chart of the Week

Over the last five decades, global education levels have seen remarkable progress, particularly for girls. However, gender disparities in lower secondary school completion still persist across regions. According to World Bank data from 2018 to 2023, some countries still exhibit stark inequalities. In Afghanistan, for instance, girls were significantly underrepresented, with a -30.4 percentage point gap. Other countries such as Iceland, Albania, Mauritius, and the Democratic Republic of Congo also showed fewer girls completing eighth grade. Conversely, several countries reveal a reverse gender gap, where boys are underrepresented—most notably in the Cayman Islands (34.5 p.p. gap), Tuvalu, Sierra Leone, Palau, and Suriname. Encouragingly, 22 economies, including Turkey and Peru, reported near parity. Yet, lagging data and political shifts, like the Taliban's impact on girls’ education in Afghanistan, underscore the ongoing need for focused policy efforts to ensure equal educational access for all children, regardless of gender.

Macroeconomic Data

Emre Aksahin

Chief Learning Officer at Edgenie

Hey Genies, 👋

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Brilliant question.

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Knowing your Economics content inside out isn’t enough. 🙅‍♂️

Why?

Because the examiner isn’t looking for everything you know.

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Take this typical exam question as an example:

"Evaluate supply-side policies the UK government can use to boost productivity."

Simply knowing market-based or interventionist supply-side policies won’t get you full marks here.

You have to link them explicitly to productivity.

And not just productivity in general—specifically the UK's lagging productivity growth.

So, what's the solution?

✅ When learning content, always link it immediately to potential exam questions.

✅ Practise structuring and writing answers as soon as you cover a topic—don’t wait for perfect knowledge.

✅ Identify gaps by doing questions FIRST, then revise to fill those gaps.

At EdGenie, we teach you how to master this exact approach:

👉 Precisely how to interpret questions.

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💸 Big Investment Incoming: Asda is planning to invest a “pretty significant war chest” to lower prices and add more staff on shop floors. 🛒

📉 Sales & Market Share Slide: The chain is fighting declining sales and market share, despite food price inflation of over 3% last year. 📊

💰 Profit Will Dip – But On Purpose: Chairman Allan Leighton says it’s an “investment warning, not a profit warning” – profits will drop in the short term to fund long-term growth. 💼

🛍️ Focus on Growing Sales: The goal is to boost profits by increasing sales, not cutting costs alone. 📈

🏪 Store Footprint Still Large: Asda operates over 580 supermarkets, nearly 500 convenience stores, and 769 petrol forecourts across the UK. 🏬

📉 Sales Slightly Down, Profits Up: Sales dropped by about 1% to £21.7bn, but underlying profits (excluding debt) rose 6% to £1.1bn. 💷

🥊 Tough Competition: Asda is under pressure from Tesco, Sainsbury’s, and fast-growing Aldi and Lidl. ⚔️

🧺 Tackling Price & Shelf Issues: Leighton highlights the need to fix pricing, stock gaps, and product range – balancing budget and premium lines. 🧃

🏷️ Everyday Low Prices Return: Asda will bring back its “Asda Price” branding next year, dropping complex promotions. 🛍️

👥 More Staff, More Hours: £43m is being spent to add 5.9 million more working hours to improve customer service in stores. 👨‍👩‍👧‍👦

💻 IT Transition Woes: The switch from Walmart’s systems is delayed, costing over £800m and causing shelf stock issues. 🖥️

🧑‍💼 Job Cuts in Tech: Around 200 roles tied to IT changes are being cut, with more tech job reductions expected later in the year. 🧾

🕰️ Long Road to Recovery: Leighton says it could take up to five years to fully turn Asda around after its £6.8bn buyout in 2021. ⏳

🧑‍🔍 Still No New CEO: The search for a chief executive continues, but Leighton says they’re taking their time to find the right fit. 🧐

💼 Strong Assets, Big Debts: Asda has £800m in cash and £9bn in assets, with £3.8bn in debt (excluding leases). Some car parks and land are being sold as routine business. 💳

📉 Debt Burden Hurts Competitiveness: Interest rates are easing, which helps, but £470m in debt repayments last year affected Asda’s ability to compete. 📉

Q. Evaluate whether Asda’s pricing strategy could lead to predatory pricing or limit pricing outcomes in the market.
A. Asda’s everyday low pricing strategy may resemble limit pricing, deterring new entrants like smaller convenience chains by maintaining prices just above marginal cost. However, unless prices fall below average variable cost, it is unlikely to be predatory pricing, which is illegal and unsustainable. Given Asda’s need to protect market share from Aldi and Lidl, the pricing strategy likely aims to signal low-cost efficiency, rather than drive rivals out. Nonetheless, competition authorities may scrutinise intent and outcomes if rivals are significantly weakened.

Q. To what extent does Asda’s strategy help address allocative and productive inefficiency in the supermarket industry?
A. By lowering prices and improving in-store service, Asda may enhance allocative efficiency, bringing prices closer to marginal cost and better matching consumer preferences. Productive efficiency could improve if economies of scale are achieved through increased sales volumes. However, if increased staffing costs outweigh gains, cost structures may rise, reducing overall efficiency. The success of the strategy thus depends on whether productivity gains offset investment costs in the long term.

Q. Assess whether underinvestment in IT infrastructure could be seen as a form of market failure.
A. Underinvestment in IT systems can be seen as a form of productive inefficiency, leading to stock shortages and poor consumer experience. If this results from information failure or misaligned incentives post-ownership change, it could represent a market failure. Moreover, if consumer welfare is significantly reduced due to persistent stock gaps, there’s a potential negative externality affecting broader retail standards. However, since this is a firm-specific issue, it may not constitute a widespread market failure unless industry-wide.

Q. Analyse how Asda’s shift to “everyday low pricing” could affect the price elasticity of demand for its products.
A. Everyday low pricing may reduce perceived price variation, potentially making demand more price inelastic, as consumers become less responsive to individual price changes. However, by promoting price consistency, it could attract more budget-conscious shoppers, increasing elasticity for particular product categories. The overall impact depends on substitutability and brand loyalty—if rivals offer similar value, elasticity could rise despite the pricing shift.

Q. Using a cost and revenue diagram, illustrate and explain the possible impact of price cuts on Asda’s total revenue and profits.
A. A cost and revenue diagram would show a movement down the demand curve, potentially increasing total revenue if demand is elastic. However, average revenue may fall faster than average cost, squeezing profit margins. In the short term, profits may decline, but if sales volume grows significantly and fixed costs are spread more efficiently, long-run profits could improve. The outcome hinges on cost elasticity and how well additional sales offset the lower price per unit.

Q. Using the kinked demand curve theory, analyse why Asda may be reluctant to increase prices, even during periods of high inflation.
A. Under kinked demand curve theory, firms in oligopolies expect rivals to ignore price increases but quickly match price cuts, creating a kink in the demand curve and price rigidity. Asda may fear loss of market share if it raises prices while Tesco or Aldi do not follow suit. Hence, it prefers holding prices steady despite inflation, absorbing cost pressures instead of risking consumer defection, which explains reluctance to pass costs on to shoppers.

Q. Evaluate how increased investment in staff and lower prices can be seen as forms of non-price competition in an oligopolistic market.
A. Improved staffing enhances customer service quality, differentiating Asda’s offering beyond price and building brand loyalty—a key form of non-price competition in oligopolies. Everyday low pricing, though price-based, can also signal value reliability, fostering consumer trust without constant promotions. These strategies help avoid destructive price wars and instead compete on experience and perception. However, rivals may imitate these efforts, reducing their impact unless Asda can maintain a sustainable service advantage.

Infographic of the Week

In 2023, China led the world with the largest trade surplus, reaching $593.9 billion—more than the combined surpluses of the next three countries—driven by its booming export sector amidst sluggish domestic demand. Germany followed in second place, with a $249.9 billion surplus largely attributed to its automotive exports, particularly to the United States. Ireland, Singapore, and Saudi Arabia also featured prominently in the top rankings, with the latter bolstered by its crude oil exports. Notably, five of the top ten surplus nations were European, highlighting the continent’s strong export presence. The data, sourced from the World Bank, reflects shifting global trade patterns amid rising geopolitical tensions and potential trade barriers, particularly between the U.S., China, and the EU.

Chart of the Week

Over the last five decades, global education levels have seen remarkable progress, particularly for girls. However, gender disparities in lower secondary school completion still persist across regions. According to World Bank data from 2018 to 2023, some countries still exhibit stark inequalities. In Afghanistan, for instance, girls were significantly underrepresented, with a -30.4 percentage point gap. Other countries such as Iceland, Albania, Mauritius, and the Democratic Republic of Congo also showed fewer girls completing eighth grade. Conversely, several countries reveal a reverse gender gap, where boys are underrepresented—most notably in the Cayman Islands (34.5 p.p. gap), Tuvalu, Sierra Leone, Palau, and Suriname. Encouragingly, 22 economies, including Turkey and Peru, reported near parity. Yet, lagging data and political shifts, like the Taliban's impact on girls’ education in Afghanistan, underscore the ongoing need for focused policy efforts to ensure equal educational access for all children, regardless of gender.

Macroeconomic Data

Emre Aksahin

Chief Learning Officer at Edgenie

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Home > Edgenie Sunday Schroll: Newsletter > "How to become a top A-level student 🚀 (simple formula)?🤔"

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How to become a top A-level student 🚀 (simple formula)

​Behind the world’s fragrances sits a shadowy oligopoly​

Summary

A Level Economics Questions:

Possible A Level Economics 25 Marker Question

Infographic of the Week

Oil Reserves Giants: Who Holds the World’s Crude Power?

Chart of the Week

China’s Green Energy Surge Leaves the World Behind

Macroeconomic Data

Whenever you're ready there is one way I can help you.

Home > Edgenie Sunday Schroll: Newsletter > "But how can I perfect exam technique if I have gaps in my knowledge?🤔"

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"But how can I perfect exam technique if I have gaps in my knowledge?🤔"

​Asda to invest in price cuts to battle drop in sales and market share

Summary

A Level Economics Questions:

Possible A Level Economics 25 Marker Question

Infographic of the Week

Global Trade Leaders: Countries with the Largest Trade Surpluses

Chart of the Week

Gender Gaps in Lower Secondary School Completion: A Global Snapshot

Macroeconomic Data

Whenever you're ready there is one way I can help you.

Home > Edgenie Sunday Schroll: Newsletter > "But how can I perfect exam technique if I have gaps in my knowledge?🤔"

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"But how can I perfect exam technique if I have gaps in my knowledge?🤔"

​Asda to invest in price cuts to battle drop in sales and market share

Summary

A Level Economics Questions:

Possible A Level Economics 25 Marker Question

Infographic of the Week

Global Trade Leaders: Countries with the Largest Trade Surpluses

Chart of the Week

Gender Gaps in Lower Secondary School Completion: A Global Snapshot

Macroeconomic Data

Whenever you're ready there is one way I can help you.

Home > Edgenie Sunday Schroll: Newsletter > "But how can I perfect exam technique if I have gaps in my knowledge?🤔"

Jump to Section:

"But how can I perfect exam technique if I have gaps in my knowledge?🤔"

​Asda to invest in price cuts to battle drop in sales and market share

Summary

A Level Economics Questions:

Possible A Level Economics 25 Marker Question

Infographic of the Week

Global Trade Leaders: Countries with the Largest Trade Surpluses

Chart of the Week

Gender Gaps in Lower Secondary School Completion: A Global Snapshot

Macroeconomic Data

Whenever you're ready there is one way I can help you.

Home > Edgenie Sunday Schroll: Newsletter > "But how can I perfect exam technique if I have gaps in my knowledge?🤔"

Jump to Section:

"But how can I perfect exam technique if I have gaps in my knowledge?🤔"

​Asda to invest in price cuts to battle drop in sales and market share

Summary

A Level Economics Questions:

Possible A Level Economics 25 Marker Question

Infographic of the Week

Global Trade Leaders: Countries with the Largest Trade Surpluses

Chart of the Week

Gender Gaps in Lower Secondary School Completion: A Global Snapshot

Macroeconomic Data

Whenever you're ready there is one way I can help you.

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Behind the world’s fragrances sits a shadowy oligopoly

Asda to invest in price cuts to battle drop in sales and market share

Asda to invest in price cuts to battle drop in sales and market share

Asda to invest in price cuts to battle drop in sales and market share

Asda to invest in price cuts to battle drop in sales and market share