Top answers

What is price elasticity of demand and how does it affect equilibrium prices and quantities?

Price elasticity of demand is a measure of the relationship between the quantity demanded for a good and the price of that good. We are more concerned with the coefficient of the change and not the direction...
JM
Answered by Josh M. • Economics tutor
7214 Views

Discuss the effectiveness of fiscal policy to counter recession

Fiscal policy is the use of taxation and government spending to achieve macroeconomic objectives. Expansionary fiscal policies such as cuts in income tax will increase the disposable income of consumers, inc...
CV
Answered by Carlo V. • Economics tutor
8029 Views

What is the demand curve?

The demand curve illustrates the relationship between the price of a good or service and the quantity demanded by consumers at any given price level. The demand curve has a negative gradient (downward slopin...
RC
Answered by Robert C. • Economics tutor
3922 Views

What is supernormal profit?

When a firm is making a supernormal profit, this refers to a profit level at which new firms are willing to enter the market. This suggests that the firms currently in the market are making a profit level ab...
CB
Answered by Chris B. • Economics tutor
13044 Views

What's the difference between an elastic good and an inelastic good?

An elastic good is a good that has a price elasticity of demand that is greater than one. This means that the demand for the good will change significantly if the price changes. An example of such is coke-a-...
HK
Answered by Hana K. • Economics tutor
30692 Views