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The determinants of demand are the factors that affect the quantity of a product that is demanded (by consumers) at every given price level. The main determinants of demand include: Income level, Consumer...
As the Sterling appreciates, goods and services from the UK become less internationally competitive. This is because more foreign currency is required to purchase the Sterling which means foreign consumer...
Price elasticity of demand shows the responsiveness of the demand of a product to a change in price. This indicates the level of necessity or luxury of that good. For example, a litre of milk would be rel...
Aggregate demand in the economy is made up of a number of components. Firstly, it consists of 'Consumption' expenditure, which is all spending by households on goods and services within the economy - anyt...
When answering a question of this kind I like to use te acronym NOPOWA to ensure I hit all the key points. It is always good to draw the graph showing the negative externality to help illustrate your ans...
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