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What are the economic assumptions for a perfectly competitive market?

There are four fundamental assumptions which must all be satisfied: There must be many buyers and sellers in the market and they all have to be price takers. That is to say, none of them are large enough to ...
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Answered by Peter W. • Economics tutor
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Explain what is meant by PED (Price elasticity of demand)

Price elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price when nothing but the price changes....
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Answered by Joao R. • Economics tutor
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What factors influence the shift of a demand curve?

Well, the demand curve can either shift left or rightA shift of the curve would be infleunced by a non price factor which would lead to a increase or decrease in demand.Non price factors include :(Change in)...
TD
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Explain price elasticity of demand and how firms can exploit this.

Price elasticity of demand (PED) is defined as % change in quantity demanded / % change in price. This is also the slope of the demand curve. If PED is less than 1, we say that the demand for the good is ine...
TD
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A small, independent fast-food shop is considering whether or not to introduce a new machine to speed up production. The machine would be able to produce burgers to order and enable the production of burgers to be split into different stages so that each

The primary issue facing the business right now is the customer complaints about service time, which is likely contributing to the decline of sales revenue. By installing the new machine, the business hopes ...
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Answered by Henry P. • Economics tutor
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