Top answers

What will be the effect of an increase in VAT within the UK on GDP?

VAT is an indirect tax that is applied to goods deemed by the government as a necessity. An increase to this tax will firstly cause a decrease to real incomes of individuals within the UK, as goods will beco...
KD
Answered by Kieran D. • Economics tutor
17437 Views

Explain the statement that oligopolistic markets such as supermarkets or car manufacturers can be defined in terms of market structure or market conduct.

An oligopoly is a type of market structure in which there are few firms with large market share and degree of monopoly power. Car manufacturers and supermarkets are an example of that. Oligopolies are charac...
VC
Answered by Viviana C. • Economics tutor
14656 Views

How do you determine consumer and producer surplus in a monopoly?

Start of by plotting a demand and supply diagram, indicate the equilibrium. Add in the marginal revenue line because a monopoly produces where MC = MR.
SF
1944 Views

Evaluate the likely effects of fluctuations in sugar prices on a sweet company.

Increase in price of sugar will lead to a rise in production costs for the sweet company as it is a factor of productionResponse: reduce supply/ raising price (inward shift of supply on diagram)General point...
TH
Answered by Tom H. • Economics tutor
2258 Views

Explain two causes of a shift of a supply curve to the right.

One cause of a shift in the supply curve to the right could be a decrease in costs of production. If a firm has lower costs of production, such as labour, it will be able to supply more of a product at any g...
FW
Answered by Fred W. • Economics tutor
13923 Views