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In the short run at least one of the factors of production (Land, Labor, Capital and Enterprise) is fixed. Due to this there are short run fixed costs relating from the fixed factors of production. In Eco...

I would firstly begin through making a reference to the assumptions of a perfectly competitive market and explaining how these assumptions help in deriving the graph. For instance, the fact that goods are...

Consumer surplus can be thought of as the feeling of getting a really good deal or a bargain. It happens when you would have been willing to pay an amount for something but the price was actually lower. W...

An increase in interest rates would impact aggregate demand (AD) by impacting consumer spending, business investments and exports-imports. When interest rates rise borrowing becomes more expensive and sav...

This would be a perfect opportunity to use a diagram to demonstrate how with the imposition of a subsidy, the supply curve will shift to the right to show the fact that more firms can now sell the product...