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Price elasticity of demand is a measure of the responsiveness of the quantity of a good demanded to changes in its price. If the demand of a good is largely affected by a change in its price, demand for t...
An externality is a positive or a negative effect experienced by a third-party to an economic transaction. In production for example, an externality would occur when there is a difference in the marginal ...
The labour market is a factor market, which is a market where the factors of production are traded. The supply of labour comes from the pool of economically active citizens who want to be employed. Labour...
Starting with the curves themselves, we have a downward sloping demand curve as more people are willing to buy at lower prices. Conversely, seller will be willing to offer more goods for sale as the price...
Inflation is the continuous increase in prices over time which can erode the value of money over time if left unchecked. This is the reason why the central bank has an interest in controlling inflation an...
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