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Is GDP a good measure of growth in living standards

Is GDP a good measure of growth in living standards? There is no definite right or wrong answer to this question. Cons · GDP alone does not account for the distribution of income in a country – can be very u...
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Answered by Johann P. • Economics tutor
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Amazon currently sells 100 000 copies per year of an e-book at $14.99. The company estimates that customers would buy 174 000 copies of the same e-book at a price of $9.99. What is the effect on Price elasticity of Demand and Total

Price elasticity of demand (PED)= %change in Quantity Demanded/ %change in price So, from the question we can see that the PED is elastic as there is a significant increase in demand for the e-book when pric...
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Answered by Connor O. • Economics tutor
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Explain what is meant when it is said that there are inefficiencies in the production of goods and the allocation of resources.

The economy achieves optimal allocation of resources when productive and allocative efficiency are attained: · Productive efficiency occurs when products are made using the least possible amount of scarce re...
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Answered by Blanca S. • Economics tutor
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Why is the demand curve downwards sloping?

The demand curve slopes downwards due to the idea of diminishing marginal utility. This is the idea that the consumer receives less additional utility for each extra unit of the good consumed.The substitutio...
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Answered by Joanna B. • Economics tutor
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If the market price of a good is above the equilibrium price, explain the chain of events that should occur to return the price of the good to equilibrium

Assuming the goods are normal, and not inferior or a luxury good, and demand and supply is elastic, If the market price of a good is above the equilibrium price- the value set by the intersection of demand a...
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Answered by Amera D. • Economics tutor
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