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What will be the effect of an increase in VAT within the UK on GDP?

VAT is an indirect tax that is applied to goods deemed by the government as a necessity. An increase to this tax will firstly cause a decrease to real incomes of individuals within the UK, as goods will beco...
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Answered by Kieran D. • Economics tutor
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Explain the statement that oligopolistic markets such as supermarkets or car manufacturers can be defined in terms of market structure or market conduct.

An oligopoly is a type of market structure in which there are few firms with large market share and degree of monopoly power. Car manufacturers and supermarkets are an example of that. Oligopolies are charac...
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Answered by Viviana C. • Economics tutor
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Evaluate the likely effects of fluctuations in sugar prices on a sweet company.

Increase in price of sugar will lead to a rise in production costs for the sweet company as it is a factor of productionResponse: reduce supply/ raising price (inward shift of supply on diagram)General point...
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Answered by Tom H. • Economics tutor
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Evaluate the use of barriers to entry in order for firms to make economic profit.

Economic profit is also known as super-normal which is the level of profit made above the normal profit mark. Normal profit is the level of profit made that is essential for a firm to survive in the market. ...
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Answered by Sneha R. • Economics tutor
2949 Views

Evaluate whether a tax on petrol in the UK would reduce the demand for cars.

A specific tax is a fixed amount levied on purchases of a commodity. These are often used by the Government to reduce the quantity demanded of goods that produce a negative externality, which means that the ...
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Answered by Jodie G. • Economics tutor
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