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If a competitor firm lowered the price of their good, assuming the cross price elasticity of demand (XED) for the two goods is positive, then demand will fall as consumers switch to the competitor's goods...

Decrease in IR --> decrease in savings by households due to high opportunity cost of saving --> increase in consumption (C)--> AD (right shift)--> economic growth & potentially inflation (...

Good structure is essential for good economics essay marks.Following the BLT route is a good way to show clear understanding. BLT = Because Leads to, therefore and can show how you have gone from knowledg...

Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than another country. Opportunity cost is the 'next best alternative forgone'. So for ...

Inflation can be described as the constant tendency for price levels to rise in an economy. There are many factors involved which determine the overall effect of inflation on a business. Firstly, an incre...