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Why does the Price Mechanism exist and what are the functions of it?

In Economics we study the idea of 'scarcity' (also known as the Economic Problem). Scarcity means that there is a finite amount of resources and an infinite amount of wishes. The Price Mechanism exists to al...
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Answered by Becky A. • Economics tutor
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Explain the assumptions behind perfect competition and how firms behave under this market structure.

Perfect competition assumes that everyone has perfect information (no asymmetries). In addition, under perfect competition, there are many firms selling a homogeneous product. No one firm can have an effect ...
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Answered by Tierney R. • Economics tutor
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Evaluate the case that economic growth is always beneficial to a country

Introduction to economic growth Benefits - Living standards increase (more jobs, higher income, better life) - but not always, sometimes growth occurs in the minority so only some benefit. Sometimes growth d...
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Answered by Jake B. • Economics tutor
6347 Views

With reference to the extract, how price elastic would supply of nuclear energy be?

The Price Elasticity of Supply for energy generated from nuclear power plants is likely to be quite low, likely below 1 – PES is calculated by %change in quantity supplied / %change in price, indicating that...
JK
Answered by Jack K. • Economics tutor
11893 Views

What affect does increasing demand have on price levels and consumer surplus?

By increasing demand levels, which often happens through a growing market and more buyer interest, you would experience a shift in the demand curve the right. This shift, whether in micro or macro economics,...
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Answered by Daisy E. • Economics tutor
2433 Views