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Food is a necessity, people need it to survive, therefore the demand for food is likely to be unresponsive to a change in price because people still have to buy food reguardless of the cost or they will d...

Definition:

Firstly, one must define supply side policies: requires the aggregate supply curve to move to the right - measuring an increase in the factors of production (eg, land, ...

Income elasticity of demand (YED) is the relationship between a change in quantity demanded for a good and the change in real income. some goods are normal and some inferior. Normal means a rise in income...

J-Curve Effect: In the short run, the fall in the value of the pound will increase the cost of importing goods and it will take time for demand to shift to domestic sources. In addition some goods cannot ...

The key to answering this question is understanding that interest rates determine the cost of borrowing. If you borrow £1000 to buy a car at 10% annualised interest rate, your cost of borrowing would be l...