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Allocative efficiency refers to when the bundle of goods being produced is an efficient bundle. Hence, if allocative efficiency is not being achieved then resources can be reallocated to produce a differe...

A public good is a good that is non excludable and non rivalrous. Non excludable means that anyone can use it; the benefits are not limited to just those who paid for it. Non-Rivalrous means that consumpt...

The price elasticity of demand (PED) measures the responsiveness of demand to a change in price. It is calculated by dividing the percentage change in quantity demand by the percentage change in price. Pr...

The Gini coefficient is a measure of inequality. It is equal to 0 when there is no inequality (the economy's income is shared perfectly equally between all individuals) and up to 1 which is perfect inequa...

Consumer and producer surplus are shown by the basic demand and supply curve diagram. Drawing a dotted line from the equilibrium point to each of the axis allows us to show them. The consumer surplus is t...