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Economics

A Level

What are Economies of Scale?

Economies of scale are essentially the cost advantages that a firm can gain by expanding its output. Economies of scale reduce the long run average cost per unit when output expands. It is important to no...

Answered by Itohan G. • Economics tutor

3822 Views

What is price elasticity of demand?

Price elasticity of demand (PED) measures the responsiveness of demand in relation to a change in price. The formula for PED is %change in quantity demand / %change in price.

If a good has an elast...

Answered by Alexandra L. • Economics tutor

2440 Views

Explain why the price elasticity of demand for two products may vary.

Price elasticity depends on several other components:

Availability of substitutes

The proportion of a consumer's disposable income which the products account for

Answered by Thomas B. • Economics tutor
1990 Views

Relate the competitive market and the monopoly setting

A competitive market is the situation where there is an infinite number of firms, they all produce equal goods and are price takers, since they cannot influence the price. In this case, the equilibrium (i...

Answered by Martina B. • Economics tutor

1540 Views

What is meant by absolute poverty and analyse how access to clean water, or another essential item, is closely linked to production, income and wealth, within countries and between countries.

Absolute poverty is characterised by acute deprivation of human needs such as: food, safe drinking water, shelter, education and information. Consequently, absolute poverty is seen mostly in low economica...

Answered by Ciaran B. • Economics tutor

1725 Views