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There are two types of inflation. The first, cost-push inflation, is where the RPI rises due to increased costs for firms across the macroeconomy. This could be down to a rise in the cost of imported raw mat...

Consumer surplus is the difference between the price a consumer is willing to pay for a good, and the actual price of that good. Producer surplus is the difference between the price a producer is willing to ...

Price discrimination is when the same product is sold in different markets at a different price.It is a way for the firm to maximise its profits from more efficient pricing by charging each producer the maxi...

The economic problem – sometimes called basic or central economic problem – asserts that an economy's finite resources are insufficient to satisfy all human wants and needs.

Firstly, a rise in interest rate could negatively impact investment within an economy. This is because the interest rate would increase the cost of borrowing and thus deter firms from taking out loans to fin...