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Government Expenditure is an injection into the circular flow of income and can be represented in an Aggregate Demand/Aggregate Supply Diagram as an increase in aggregate demand. (Shows on diagram shift i...
Aggregate demand can be defined as the total demand to the output a country’s economy at a given time interval and given price level. It is calculated through the formula AD=Consumer Spending (C)+ Investm...
The price elasticity of demand, also known as PED for short, is a measure of how responsive consumers of a product are to a change in price. In a competitive business market, its important for producer to...
Define the terms in the question: Subsidy, and then explain that it would be a positive externality of production.Draw and illustrate a positive externality of production, ensure to label everything and n...
An increase in the cost of productions of a product would lead to several decisions being made the producer; they may either keep their market price the same, reducing their profit margins, or they may in...
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