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A maximum price is a price set below the market equilibrium by the government which firms are not allowed to exceed. This can result in creating disequilibrium in the market resulting in ...
An indirect tax (when a government places a tax on goods or services) on cigarettes is an example of the correction of a negative externality of consumption (a market fai...
In economics, elasticities are an indicator of the responsiveness of demand after a change in price or income. Income elasticity of demand is the relative change i...
A perfectly competitive market structure possess 4 defining characteristics. 1- Homegenous goods (all goods produced by different suppliers are of same quality and form, eg. Oranges) 2. No barriers to ent...
Inflation is defined as a persistent increase in the average price within a country, in other words a decrease in the purchasing power of a currency. There are two main groups that the reasons for inflati...
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