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What is oligopoly?

An oligopoly is a type of market structure. A good example to think about would be the supermarket industry, where we can see our main suppliers of this industry are the likes of Tesco, Asda, Aldi etc. In an...
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Answered by Siya P. • Economics tutor
8842 Views

What is the deadweight loss of a tax and how do I calculate it?

We have inverse aggregate supply and demand curve and our product is sold at the market equilibrium price. We know that a demand curve is downward sloping, that means there will be less goods demanded at a h...
JA
Answered by Jona A. • Economics tutor
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What is the effect of reducing interest rates on a currency’s exchange rate?

‘Interest rates’ refer to the return on savings and cost of borrowing in a country. If interest rates were to fall in a country, such as the UK, it would become less profitable to save money there. This mean...
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Answered by Owen M. • Economics tutor
2494 Views

Record numbers of visitors to the Olympic Games want accomodation in the host city. Explain the effects that this will have on the market for rental properties.

Before starting, it is important to note that the property market is different to other markets as building new houses/flats takes time, so the supply of accomodation cannot be increased quickly. Therefore, ...
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Answered by Nisa H. • Economics tutor
2123 Views

How does an increase in investment affect the economy?

Define what investment is: spending by firms on capital goods (eg. machinery). Then analyse the effect of the change in the question: Investment is component of the equation Y=C+I+G+NXIncreasing investment t...
EC
Answered by Ellie C. • Economics tutor
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