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Price elasticity of demand is an economic concept that economists use to understand how demand is affected by changes in price. Formally, it explains the responsiveness to demand to a change in price. Whe...

1. GDP does not include the hidden economy. This includes illegal activities such as the drug trade, which constitutes a significant proportion of total output in some countries.
   2) Living standar...

The IS-LM model is the Investment-Savings Liquidity Preference-Money Supply model. It displays equilibrium in the macro-economy when the two curves, IS & LM, intersect.LM Curve: Displ...

Demand Shift to the Right:As we can see on the diagram this increase in demand for ice-cream will cause the demand to make a full shift to the right (reference positions X-Y). This will mean that the equi...

The Tragedy of the Commons (also known as the Tragedy of Freedom in a Commons) is an economic situation in which individual economic agents choose to maximise their individual gain when using a shared res...