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What is a negative externality and how can you address them?

An externality is a benefit or a cost borne by a third party when producing or consuming a good. Hence there can be negative and positive externalities of production and consumption. E.g. Cigarettes have ...

Answered by Sofia D. • Economics tutor

10845 Views

What is the difference between a shift and a movement in the demand (or supply) curve?

A shift in the demand curve occurs when there is a non-price determinant of demand, including a change in consumers' income, changing trends and tastes, changes in the price of complementary and substitut...

Answered by Sofia D. • Economics tutor

16648 Views

Explain why the price elasticity of demand for two products may vary.

Price elasticity depends on several other components:

Availability of substitutes

The proportion of a consumer's disposable income which the products account for

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Answered by Thomas B. • Economics tutor
2437 Views

Relate the competitive market and the monopoly setting

A competitive market is the situation where there is an infinite number of firms, they all produce equal goods and are price takers, since they cannot influence the price. In this case, the equilibrium (i...

Answered by Martina B. • Economics tutor

1829 Views

What is meant by absolute poverty and analyse how access to clean water, or another essential item, is closely linked to production, income and wealth, within countries and between countries.

Absolute poverty is characterised by acute deprivation of human needs such as: food, safe drinking water, shelter, education and information. Consequently, absolute poverty is seen mostly in low economica...

Answered by Ciaran B. • Economics tutor

2055 Views