Top answers

What is market failure?

-definition =>complete, market not supply at all=missing markets and partial=>wrong quantity or price -example with diagram -explanation
YA
Answered by Yasmin A. • Economics tutor
2156 Views

What are the two different types of circular flow of income models?

The first is in a closed economy, where there are just households and firms present and thus no exchange between the two in terms of spending and transfer of goods and services. The second is in an open econ...
RT
Answered by Rohan T. • Economics tutor
6765 Views

Describe one effect of an increase in the rate of interest on the economy?

An increase in the ROI(rate of interest) would increase the reward for saving money and hence increase consumers' incentives to save. This would reduce the levels of consumption in the economy and hence redu...
HS
Answered by Helen S. • Economics tutor
2345 Views

Analyse positive impacts of a merger between two firms.

One positive impact of a merger could be due to economies of scale. One economy of scale that could occur is bulk buyinh economies of scale. As a firm gets larger and output increases through a merger, it wi...
KS
Answered by Karan S. • Economics tutor
3944 Views

Bill's Diner is an American burger restaurant. There is an increase in import costs of products needed from America, and change in perceptions of fast food such as burgers, due to an increase in health warnings. Discuss the effects on the market. (6)

A decrease in supply (1) A decrease in demand (1) A reduction in overall market quantity (1) An indeterminable effect on price (1) Effect will depend upon relative size of the shifts (1) and the price elasti...
DC
Answered by Daanial C. • Economics tutor
2153 Views