Economics class: Boris Johnson warns of UK energy price shock
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Specification:
Demand and supply, market failure, price ceilings, government regulation, environment
Click to read the article below and then answer the questions:
Boris Johnson warns of UK energy price shock
‘His comments came against a backdrop of steep rises in energy prices in recent months, in part because of Russia limiting gas exports to western Europe.’ Using a diagram, analyse the cause of rising energy prices
‘Ofgem, the regulator, earlier this month raised the price cap.’ With reference to wholesale energy prices and retail energy prices, explain the purpose of the price cap
‘Britain is tied to international markets, so it has to pay more when there is strong demand or concerns over tightening supply.’ Using a diagram, analyse the effects of these demand and supply-side concerns.
Evaluate the UK’s options for reducing its exposure to global gas markets
Gavin Clarke, Emmanuel College
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