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First, think of 'elasticity' as a general word.it means "ability stretch". Therefore elasticity of demand could be understood to be how demand of a certain commodity strecthes or reacts in re...

When the interest rate is low enough, monetary policy will fail to work, because:

1. interest rate cannot be lower than zero. Given the circumstances that the interest rate is low enough,...

The key to answering a question like this is to know a basic policy that HM Government has implemented recently. You can have a few policies that you remember so that when a question like this comes up...

A country is likely to benefit from higher rates of GDP growth. This is because access to a greater market size means greater export potential for countries like Malawi to exploit their comparative adv...

Price elasticity of demand is the responsiveness of demand to a change in price. (Definitions are key in economics!)1. The number and closeness of substitutes, if a good has many close (similar) substitut...