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(Apologies for the formatting. If you're interested I am happy to send you a pdf version of this plan)This is a classic A level economics question where the overall answer structure is applicable to any “...

It is defined as the value of the next best alternative forgone.

So this may seem a bit odd at first - like why is it the the more of something there is, the less it costs to buy? But it actually makes a lot of sense when we break down the law of demand. The law of dem...

Large number of firms and consumersEach firm is a price-taker and hence has no price setting powerThe price is determined in the market by supply and demandProducts are homogenous and are therefore perfec...

Deflation is the state of an economy where prices are falling, representing a rise in the real value of money over time. If inflation is falling that means that the rate at which prices increase is reduci...