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Explain the law of demand with the help of a diagram.

Demand can be defined as the willingness and ability of a consumer to purchase a good or service.The law of demand states that the quantity demanded of a good or service increases as its price decreases and ...
DP
Answered by Dhwani P. • Economics tutor
11811 Views

What are negative externalities of consumption? Explain with a diagram.

An externality is any effect on a third party caused by actions and transactions that don't directly involve them. Negative externality of consumption can be defined as the cost imposed on the third party du...
DP
Answered by Dhwani P. • Economics tutor
13744 Views

What is the difference between a merit good and a public good?

A merit good is a good which has positive externalites and therefore people do not consume enough of them. For example, vaccinations. A public good has two characterisitics, it is non-rival: this means that ...
ED
Answered by Ella D. • Economics tutor
8489 Views

Why is it ineffective to tax inelastic products as a means to deter their consumption?

Define terms: An inelastic good is product for which demand does not reduce significantly as a result of an increase in price. This generally means that price increase have little impact on how much of the g...
UO
Answered by Uchechi O. • Economics tutor
7845 Views

What is the opportunity cost of a good?

The quantity of other goods sacrificed to get another unit of that good.
GW
Answered by George W. • Economics tutor
6030 Views