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Price elasticity of demand is defined as the proportional change in demand to a change in price. If the response in demand is more than proportional to the price change, demand is elastic. A less than pro...

The difference between Micro and Macroeconomics is simple to understand and the hint is in the name!

Microeconomics is the study of economics on a 'small' level: at an individual, firm and market l...

There are many possible answers, including: the price, the quality, advertising, branding, promotions, and the price and closeness of substitutes or compliments. There are also macroeconomic factors such ...

Evaluating fiscal policy:

1. Opportunity cost - relevant for spending decisions e.g. high spending on welfare benefits reduces budget available for other government services e.g. healthcare,...

Inflation is the persistent increase in price of goods and services in the economy from one time period to the next. 

So take a chocolate bar which cost you £1 last year, now costs you £1.10. The i...