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Consumer surplus can be thought of as the feeling of getting a really good deal or a bargain. It happens when you would have been willing to pay an amount for something but the price was actually lower. W...
An increase in interest rates would impact aggregate demand (AD) by impacting consumer spending, business investments and exports-imports. When interest rates rise borrowing becomes more expensive and sav...
Interest rates have been relatively low in the UK since the financial crisis in 2008 but have lately been on the rise as the Bank of England recently increased the base rate from 0.5% to 0.75%. One impact...
Highest valued option forgone.
To answer this question, we need to think about the "factors of demand", which are the variables that determine an individual's demand for a good or service. The four main factors to remember ar...
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