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Please can you help me to understand the concept of price elasticity of demand (PED)?

PED is a measure of the responsiveness of demand following a change in the price of a good or service e.g. if the price of good X rose by 20%, PED would measure the extent to which the demand for good X chan...
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Answered by Tara P. • Economics tutor
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Explain the concept of internal economies of scale and the three stages of returns that can occur when firms increase their factors of production? Graphs maybe used in your answer

Internal economies of scale are centred around the relationship of a firm increasing its factors of production ie. its inputs and how this affects the average cost of producing goods. The general concept is ...
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Answered by Colm K. • Economics tutor
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What would be the impact on the multipler effect given an increase in income tax?

The multipler effect is when an additional increase in aggregate demand can cause a greater final impact on national income (GDP) than the inital size of the injection, with the multipler being a coefficient...
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Answered by Daud B. • Economics tutor
2709 Views

What is the effect of an increase in supply on the economy?

An increase in supply, such as that caused by a fall in producer costs causes prices to fall, and the quantity consumed to increase. Diagrammatically, this is represented by an outwards shift of the supply c...
Answered by • Economics tutor
5142 Views

How does increasing interest rates affect inflation?

What are interest rates? Interest rates are the rate of return offered on any kind of loan or investment. In reference to monetary policy and manipulation, the interest rate refers to the rate set by the cen...
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Answered by Oscar B. • Economics tutor
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