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What is the law of demand?

The law of demand is a law which compares the price and quantity of a good. There is a negative correlation and therefore as price incases the quantity demanded of a good decrease. The reason for this is the...
JR
Answered by Joao R. • Economics tutor
2022 Views

What is the law of demand?

Very crucial concept to economics but an easy one to understand.The law of demand states that quantity purchased is inversely related with price. Basically, the higher the price, the lower the quantity deman...
TD
2096 Views

Evaluate the usefulness a knowledge of perfect competition theory in analysing the behaviour of firms. [15]

Perfect competition is the most competitive market structure with many firms holding a small market share and no barriers to entry. There are no pure real-world examples of this market structure but some com...
Answered by • Economics tutor
6306 Views

Why is a certain level of inflation desired?

Inflation is a sustained increase in the price level. That is, the percentage increase in the price level over a period of time. Normally, we use the Consumer Price Index (CPI) as the indicator of inflation....
Answered by • Economics tutor
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A product with perfectly elastic supply has sales of 100 units per week at a price of £2 per unit. Price elasticity of demand is(-)1 .5 over the relevant range. The government imposes a tax 20%. What will be the government’s weekly tax revenue?

£28
JI
Answered by Jamie I. • Economics tutor
2624 Views