Ready to test your microeconomics muscles? Welcome to our Diagram Challenge! In this video, we walk through five essential micro diagrams that could make all the difference in your 2025 exam answers. The focus here is the four-mark diagram questions in Section A.

Each scenario is ripped straight from the real world – covering current economic trends, policy shifts, and environmental issues – and turned into exam-ready supply and demand or cost/benefit diagrams. Get ready to tackle:

✅ Subsidies for electric vehicle manufacturers

✅ Negative externalities from water pollution

✅ The labour market impact of work visas

✅ The effects of rising fixed costs on firm behaviour

✅ How wage increases (like the 2025 National Living Wage hike) affect employment