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Why does the demand curve face downwards?

The demand curve is downward facing because in order for quantity to rise, firms need to lower prices.
VL
2896 Views

Focusing on YED, please explain the type of Goods?

Normal good: 1 or greater than 1, as YED increases, QD for a good increases too. Superior/ Luxury good: Also a normal good: it makes up a large proportion of consumption e.g. a new car. (Scarce to buy/ high ...
VL
3221 Views

Explain the term 'recession' and analyse two possible causes of a recession.

A recession is the phase of the economic cycle, after a boom, during which real GDP starts to fall and unemployment starts to rise. It is two successive quarters of negative economic growth. The UK's 'Great ...
LS
Answered by Laura S. • Economics tutor
4477 Views

Using a graph, provide reasons for the placement of a sales tax on alcohol. (5 marks)

Alcohol is seen as an example of a demerit good. This means that upon consumption of the good,whilst the consumer receives a private benefit, they push a negative impact onto a third party, in this case soci...
JR
Answered by Jacob R. • Economics tutor
2185 Views

Define economics of scale and explain them 2 examples

Economies of scale are when firms experience a fall in long run average costs due to the growth of the size of the company. Firstly an example is financial economies of scale. This is when a company can borr...
SW
Answered by Sophie W. • Economics tutor
2958 Views