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An increase in supply, such as that caused by a fall in producer costs causes prices to fall, and the quantity consumed to increase. Diagrammatically, this is represented by an outwards shift of the...
In this case, I would draw out two diagrams of a good with elastic demand and another good with inelastic demand.Price elasticity of demand is a measure to show the responsiveness of the quantity demand i...
A negative externality is a cost that is suffered by a third party as a consequence of an economic transaction. In a transaction, the producer and consumer are the first and second parties, and third part...
What are interest rates? Interest rates are the rate of return offered on any kind of loan or investment. In reference to monetary policy and manipulation, the interest rate refers to the rate set by the ...
International competitiveness refers to how attractive a products in country are in international markets in terms of quality and price. One way in which Britain could increase its international competiti...
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