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The demand curve shows how different prices of a commodity affect the quantiy demanded by consumers.Price is always show on the y-axis (vertical) and quantity on the x-axis (horizontal). These two variabl...

It is the sustained increase in the general price level. There are two types of inflation, cost push inflation and demand pull inflation. Cost push inflation is when costs increase so much that firms incr...

There are many acceptable definitions of "external costs" but if you have the basic understanding of what it is then you should be fine. Firstly you know that it is a negative effect/impact by &...

Food is price inelastic because there is no alternative or substitute good that we can consume in order to sustain life. Therefore if the price of food increases we still require it to survive, resulting ...

Monetary policy is a policy used by the central banks which involves increasing and decreasing the level of interest rates within an economy so as to control the level of inflation. Inflation is the rate ...