Why Externalities make markets inefficient?
For markets to work efficiently there are two conditions that should be met; first is that the demand curve must
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Sameen Tariq
How the price elasticity of demand affects the total revenue?
Total revenue is the sum of all products and services sold. It is computed by multiplying the total number of
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Price Elasticity Of Demand
According to the law of demand, there is an inverse relationship between price and quantity as the price goes up
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How a producer surplus helps the suppliers to decide the right level output to produce?
In this world full of competition and evolving entrepreneurs every now and then someone comes up with the new idea
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How does consumer surplus explain why markets are efficient?
In a market system, things get settled after combining the individual’s preferences of both sides that is demand and supply
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How price ceiling and price floors work and why they cause a shortage or surplus in the market?
These are buyers and sellers whose interactions in the market decides at what price the demand and supply would meet
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How does the market equilibrium change as the supply and demand shifts?
For understanding how the thing works in the market system first, we have to have a general understanding of demand
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Why does the supply curve show an upward sloping trend?
Supply is a pattern of seller behavior that shows the amount of product he or she is willing and able
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What role does demand play in the Market system?
In the Market system, its a buyer .i.e Demanders and sellers .i.e Suppliers whose interaction sets the price and quantity
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Out of the 3 economic systems, what kind of economic systems now prevailing worldwide?
The living standards of the people of any country determined by how the economy of the country is doing. For
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