Top answers

What is a Pigouvian Tax?

In the dynamics of a certain market, it would be externalities as a consequence of the normal operation of buying and selling of this market. An externality happens when a third-party (not involved in the op...
LP
Answered by Luis P. • Economics tutor
5694 Views

In February 2013, the proposed takeover by Barr of Britvic was referred to the Competition Commission for investigation. There were likely to have been concerns that the takeover would lead to...

(Barr and Britvic are two of the three largest soft drink firms in the UK.) A economies of scale B an increase in consumer surplus C a decrease in contestability D a reduction in external economies of scale ...
BW
Answered by Brodie W. • Economics tutor
3918 Views

How can changes in the interest rate affect aggregate demand?

A reduction in the interest rate will increase the incentive for consumers to spend money. This increases consumption which increases aggregate demand. An increase in the interest rate will increase the ince...
PP
Answered by Parth P. • Economics tutor
3771 Views

Describe the long run aggregate supply curve.

Initially the curve is perfectly elastic. This means without raising the price level, output can increase. Output then becomes increasisngly less responsive to changes in the price level until the curve is p...
PP
Answered by Parth P. • Economics tutor
3934 Views

Does a higher NMW increase the distribution of income?

This depends on a multitude of factors and is tricky to answer. One of the ways in which a higher NMW, which the latest government is implementing, would reduce inequality, is simply because it raises wages ...
TW
Answered by Thomas W. • Economics tutor
3137 Views