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What can the government do to reduce pollution (negative externality from market failure) within the community?

In order to go about a question like this, the foundations of the question must be laid out through definitions and diagrams so we can develop our analysis and evaluation.Market failure occurs because of the...
KA
Answered by Korede A. • Economics tutor
3040 Views

How can a depreciation in the home currency impact the trade balance?

The trade balance is defined by the difference in value of exports minus imports. Now a depreciation in a the home currency means it that one unit of foreign currency (lets say $) can now purchase more £'s a...
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Answered by Lewis J. • Economics tutor
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What are supernormal profits?

A firm operating in any market structure has one requirement to stay in business - breaking even. In economic terms, this is known as normal profits , wherein a firms costs and revenues are equal. Supernorma...
AM
Answered by Adhik M. • Economics tutor
4395 Views

The price of a banana has increased from £0.10 to £0.20. As a result quantity demanded of apples increased from 2.4 million units to 3.6 million units. Calculate the cross price elasticity of demand and interpret the value..

First we must use the formula to calculate cross price elasticity: XED= percentage change in quantity demanded of good A/percentage change in price of good B We are given the changes in quantity demanded for...
HM
Answered by Hugo M. • Economics tutor
2763 Views

Discuss the effect of a carbon tax on the level of carbon emissions

A carbon tax can be implemented to address the negative externality from carbon emissions at the point of production from firms. The tax forces firms to cut their emissions as it increases their costs; this ...
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Answered by Evie J. • Economics tutor
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