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The ‘Wealth Effect’ is when consumers feel wealthier (e.g. due to an increase in the value of assets such as housing) and therefore feel more confident and spend more. Often resulting in a rise in Consume...
An externality is the cost or benefit of an economic transaction to any party that was not part of the economic transaction. Examples would be the negative cost on society of smoking through second hand s...
(10 x 5) (coupon value x length of bond) = 5050/500 (previous answer/bond value) = 0.10.1 x 100 (coupon rate as percentage) = 10%
Consumer surplus is an important concept in economics. Essentially, it is the extra amount that a consumer is willing to pay for a given good or service. It is the difference between the current amount pa...
A Negative Externality. For example, in the production of Fuel, the private cost of producing the good (i.e £1) many not take into account the social cost of production (e.g pollution, climate change ect....
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