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If John’s elasticity of demand for burgers is constantly 0.9, and he buys 4 burgers when the price is £1.50 per burger, how many will he buy when the price is £1.00 per burger

We are using elasticity to find quantity, instead of the other way around. We will plug in what we know, and solve from there.

Elasticity =
And, in the case of John, %Change in Qua...

Answered by Matthew S. • Economics tutor

4763 Views

Why is the concept of the “marginal “ so important in economics?

“Marginal” in economics means “additional” and “extra”. It is the idea that firms may take decisions by considering the effect of small changes from the existing situation. Economists rely heavily on t...

Answered by Tiffany C. • Economics tutor

25272 Views

Explain the factors influencing short run and long run aggregate supply

Factors affecting the short run aggregate supply includes factor costs, temporary supply shocks, government policies with short-term effects and expectation of price level.

Answered by Tiffany C. • Economics tutor

35079 Views

Examine the desirability of a fixed exchange rate regime amongst the world's major economies.

A fixed exchange rate is one in which the currency is pegged, and the government intervenes to ensure that this value is maintained if it is threatened.Governments or central banks can do this by buying o...

Answered by Rhys M. • Economics tutor

2411 Views

What is the difference between accounting and economic profit?

Accounting profit is revenues minus explicit costs, which include wages and machine rental among other things. But there are also implicit costs, or opportunity costs. These can arise because the factors ...

Answered by Jonathan A. • Economics tutor

4271 Views