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Explain one possible effect on the equilibrium market price of an increase in production costs for firms

An increase in production costs will result in an increase in the equilibrium price. This is because the increase in production cost means that firms will be less willing to supply and therefore there will b...
LR
Answered by Leonie R. • Economics tutor
10759 Views

Using Figure 5, assess whether the decision to install the machine (used in production in an independent fast food shop) will be beneficial for the business and the workers.

It is stated that the production of burgers can be split into different stages following the installation of the machine. This allows for the division of labour and the subsequent specialisation of workers w...
SD
Answered by Stefan D. • Economics tutor
3020 Views

The National Living Wage (NLW) government policy target is to increase the NLW to £9 per hour by 2020. Explain two possible impacts of this policy on the UK supermarket industry.

Increased labour costs, many staff on minimum wage. This could impact on competitiveness against other supermarkets, as prices may have to be increased to match the increase in costs, so customers may switch...
AB
Answered by Alex B. • Economics tutor
2446 Views

Explain the concept of price elasticity

Price elasticity of demand (PED) is how demand of a good/service changes as the price of the good/service changes.As a formula: % change in quantity demanded / % change in pricePED < 1 means the quantity ...
VG
Answered by Vivek G. • Economics tutor
2316 Views

Evaluate the impact of a fall in the price of oil on the market for diesel cars

3 sections: Analysis: what happens to supply/demand as a result?Application: in detail, what drives these changes in supply/demandEvaluation: how likely are these effects? are there any time lags? what facto...
HB
Answered by Hugh B. • Economics tutor
2164 Views