Ask an Economic Question

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You are welcome to ask any questions on Economics. Though you might also like to try google custom search (top right) to see if the topic has been covered before.

I am looking to explain economic principles / ideas/ recent developments in economics. I can’t promise to answer, but will try if it meets the criteria below.

  • Please don’t ask me to do your coursework / assignment e.t.c. (I can usually tell if it is a homework question!)
  • Please don’t ask any maths calculations.
  • The question and answer will be published here so that everyone can see it (including your teacher!)
  • I aim to try and simplify economics; as a rough guide, I would aim at an understanding similar to a good British A Level student.
  • I am looking to explain economic principles/ideas/ recent developments in economics.
  •  I will answer as a new post, if you leave email address, I’ll usually send quick email. Check home page of blog for new post. With question and answers

Add comment at bottom of post.

mail(at)econoimcshelp.org

2,583 thoughts on “Ask an Economic Question”

    • No, because if all firms agree to increase price, demand will be inelastic (not elastic for price rise – kinked demand curve predicts.

  2. How do i calculate equilibrium output when my tax and import is no longer autonomous?

    The economy Equilia has the following parameters (in $ millions):
    Consumption: C = 800 + 0.8(Y – T)
    Planned Investment: IP = 500
    Government purchases: G = 300
    Net tax revenue: T = 500
    Exports: X = 800
    Imports: IM = 400

    The economy Taxia has parameters identical to Equilia, except that net tax revenue is no longer autonomous. Instead, the tax function is T = 0.0625Y. The coefficient 0.0625 may be called the income tax rate.
    A. Verify that the equilibrium output is also $8 billion. Draw an expenditure-output diagram to illustrate the equilibrium. Compare this diagram to that of Question 1 Part A.

    The economy Importia has parameters identical to Equilia, except that imports are no longer autonomous. Instead, the import function is IM = 0.05Y. The coefficient 0.05 may be called the propensity to import.
    A. Verify that the equilibrium output is also $8 billion

  3. types of barriers to entry that exists in the banking industry. justify whether it is beneficial for existing banks to attempt to create such barriers.

    2. evaluate the role of the banking sector in stimulating economic growth, creation of employment opportunities and supporting price in south Africa.

    3. Price elasticity demand in petrol and how does it influence supply market equilibrium position. use diagram

  7. I realy appreciate ur effort. this is the reliable source to learn economics.
    Now I asking my question
    I learn types of market from ur site can you give me a practical example of all these market????

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