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What is inflation and how does it come from supply or demand side?

Inflation - a situation in which the general level of prices in the economy is rising. Cause: money supply that grows too quickly. supply —> Prices and value of money are inversely related . I.e. money sh...
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Answered by Julia R. • Economics tutor
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What is diminishing marginal utility?

Diminishing marginal utility- each additional (marginal) piece of pizza brings less utility than the previous one. Therefore extra utility (marginal utility) brought by each successive slice diminishes as yo...
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Answered by Julia R. • Economics tutor
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What does it take to make a 7 in HL Economics?

Most IB students pick HL Economics thinking it is an easy seven that can boost their total score. However, IB economics is one of the most instense courses offered by the IBO. There are five main steps to ta...
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Answered by Youssef M. • Economics tutor
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If a country wishes to depreciate their own currency, how could they do so in terms of monetary policy? List three possible effects depreciating their currency will have on the economy.

This is a question relating to international economics. In order to depreciate the currency, the country would have to use an expansionary monetary policy, as this would increase the supply of their own curr...
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Answered by Silje I. • Economics tutor
3892 Views

Explain what is meant by ‘price elasticity of demand’

'Price Elasticity of Demand' essentially refers to the responsiveness of Demand with respect to price. It can be understood as the proportional change in demand after a change in price. To calculate the Pric...
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Answered by Zyad A. • Economics tutor
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