Search over 10,000 free study notes

It slopes downwards because a lower price means more buyers will be willing and able to purchase the good (as it becomes more affordable to more people), so the quantity demanded increases. This is an inv...

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...

Interest rates are the cost of borrowing money expressed as a percentage of the amount borrowed. A reduction in the bank rate by the MPC (Monetary Policy Committee) would result in banks offering lower in...

Firstly, a depreciation of a currency; such as the 'pound sterling' in the United Kingdom, can be defined as a fall in the external value of the currency in relation to another currency of another country...

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...