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Explain three factors that could lead to an increase in demand for cigarettes.

Demand is the total amount of goods and services that consumers are willing and able to purchase at a given price in a given time period. The Law of Demand states that as the price of a product falls, the qu...
JT
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Explain how petrol and diesel cars may be a source of market failure?

As with many questions in economics A-level, I would start my answer with a paragraph explaining how under certain assumptions, an efficient allocation of resources can be achieved through the market mechani...
DO
Answered by Daniel O. • Economics tutor
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Using examples, explain the difference between price elastic and inelastic.

Price elastic refers to when a change in the price of a good or services creates a larger percentage change in the demand for that good, or PED > 1. An example of an elastic good is Hovis Bread, because t...
RH
Answered by Rebecca H. • Economics tutor
6497 Views

On the graph related to the firms topic, why does the marginal cost curve meet the average cost curve at its lowest point.

The marginal cost is the cost of producing an additional unit, whilst the average cost is the average cost of producing each unit. If the marginal cost is lower than the average cost then the average cost wi...
AS
Answered by Asisa S. • Economics tutor
6471 Views

What is producer surplus and when might it change?

Firstly, let’s consider the concept of producer surplus. This can be defined as the difference between the price producers are willing to supply their goods/ services at and the market price (the price they ...
OD
Answered by Olivia D. • Economics tutor
4992 Views