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What is the different between an increase in demand and an extension in demand?

First of all this is something that people very frequently struggle with and it can be difficult to get your head around at first. But if we were to look at the demand curve it is easier to visualise the dif...
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Answered by Adam M. • Economics tutor
35703 Views

What are some main solutions for consumption negative externalities, such as smoking?

Negative consumption externalities derive from the marginal personal benefit being higher than the marginal social benefit. This creates a welfare loss triangle, which the government tries to avoid. Demerit ...
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Answered by Nicole K. • Economics tutor
4955 Views

Evaluate the impact of a tax on sugar drinks. (This is probably more A-level than GCSE)

Analysis: First define tax and explain that this could be ad valorem (percentage of price) or per unit (set tax per unit). Explain why the government would want to do this - overconsumption can cause obesity...
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Answered by Bronwen L. • Economics tutor
2672 Views

Explain the effect of a subsidy on equilibrium price and quantity in a demand and supply model.

If the government offer a subsidy to firms, this will reduce their per unit cost of production. This will shift supply downwards, as for a given market price, the firm is willing to produce more. This will r...
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Answered by Anna R. • Economics tutor
21505 Views

Explain the impact on a firm due to an increase in the minimum wage.

The firm’s costs will increase as they will have to pay each worker more per hour due to the new minimum wage. This means that they will have less profits for their shareholders, and less money to invest. Ho...
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Answered by Megan K. • Economics tutor
2094 Views