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Explain the concept of price elasticity of demand

Price elasticity of demand is an economic concept that economists use to understand how demand is affected by changes in price. Formally, it explains the responsiveness to demand to a change in price. Whe...

Answered by Hamza E. • Economics tutor

2193 Views

What are some disadvantages of using GDP as a measure of living standards?

GDP does not include the hidden economy. This includes illegal activities such as the drug trade, which constitutes a significant proportion of total output in some countries.
2) Living standar...

Answered by Suchir K. • Economics tutor

5761 Views

What is the IS-LM model?

The IS-LM model is the Investment-Savings Liquidity Preference-Money Supply model. It displays equilibrium in the macro-economy when the two curves, IS & LM, intersect.LM Curve: Displ...

Answered by Sean H. • Economics tutor

3374 Views

Draw and label a diagram to show the effects on the equilibrium market position to show the effects of a hot sunny day on the market for ice creams.

Demand Shift to the Right:As we can see on the diagram this increase in demand for ice-cream will cause the demand to make a full shift to the right (reference positions X-Y). This will mean that the equi...

Answered by Casarina F. • Economics tutor

2127 Views

What is the "Tragedy of the Commons" and how may it be solved?

The Tragedy of the Commons (also known as the Tragedy of Freedom in a Commons) is an economic situation in which individual economic agents choose to maximise their individual gain when using a shared res...

Answered by Rithik H. • Economics tutor

2771 Views