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What will happen to the price level when the price of imports increases?

The price level will increase, because foreign goods will be more expensive and this will effect prices overall.
GF
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Should the government intervene in cases of market failure

The benefits of government intervention are largely dependent on the type of government intervention and the form of market failure it hopes to correct, however it is normally beneficial for the government t...
GF
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Explain why a firm in perfect competition can not experience abnormal profit in the long run.

Perfect competition is a market structure in which an infinite number of firms produces identical products for an infinite number of consumers. It is an ideal and theoretical model. Abnormal (supernormal/eco...
BV
Answered by Bianca V. • Economics tutor
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On a Production Possibility Frontier diagram, indicate a point where resources are efficiently allocated (label X) and an inefficient one (labelled Y). Explain why X is efficient, why Y is inefficient and how output could be increased from both.

Concave PPF diagram - point X anywhere on the curve, point Y strictly inside the curve. X is efficient because an increase in output of one good cannot be achieved without reducing the output of the other (f...
KT
Answered by Karl T. • Economics tutor
2198 Views

Using diagrams, explain how the incidence of an indirect tax may be affected by the price elasticity of demand.

Indirect tax - Taxes imposed by the government on goods and services aka expenditure tax. Price Elasticity of Demand - a measure of the relationship between a change in the quantity demanded of a particular ...
VO
Answered by Voke O. • Economics tutor
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