Top answers

How would you explain, in your own words, the concept of "Decreasing Returns to Scale"?

This is a phenomenon that occurs when input (labour, raw materials or capital) is added to a production process and yields a less than proportional increase in outputAs an example, we could look at a company...
LA
Answered by Laura A. • Economics tutor
2200 Views

In what way does a central bank increase the money supply in an economy?

In general, modern central banks such as the ECB or BoE tend to use interest rate targeting as a way of tightening or loosening monetary policy, however occasionally the money supply is manipulated instead. ...
ER
Answered by Edward R. • Economics tutor
2805 Views

What is the effect on price and quantity on flight tickets when the oil price has increased.

When oil price increased, the cost of production for plane company increase and supply will shift left. When supply sift left the price will increase and quantity will decrease.
ML
Answered by Max L. • Economics tutor
1940 Views

How to answer elasticity questions

Answering Elasticity questions: Using technique DEED as for all other questions D- define E- explain E- example D- diagram YED = % Change in demand divided by the % change in income 1. Identify wether the go...
AS
Answered by Amber S. • Economics tutor
2554 Views

Explain the possible negative externalities that might arise from the increased use of cars (10 marks)

Negative externalities are caused either by the consumption or the production of a good or service. The use of cars results in the creation a negative externality of consumption, which is defined as an exter...
JW
Answered by Joseph W. • Economics tutor
18170 Views