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First, we must begin by defining an indirect tax. An indirect tax is a tax that is levied on a particular good, making it a tax that taxes consumers based on their consumption choices. Issuing an indirect...

Price elasticity of demand is a measure of the responsiveness of the quantity of a good demanded to changes in its price. If the demand of a good is largely affected by a change in its price, demand for t...

The price mechanism is an indicator of how much consumers/society value a given product. It is the value allocated to each product & signals what to produce. This could be seen on the example of a mar...

There are three main types of unemployment: real-wage (classical), demand-deficient (cyclical), and equilibrium unemployment (which includes seasonal, frictional, and structural unemployment). Real wage u...

I would firstly begin through making a reference to the assumptions of a perfectly competitive market and explaining how these assumptions help in deriving the graph. For instance, the fact that goods are...