Since the 1980s, UK train travel has increased sharply. Despite above-inflation price increases, demand for travel by train continues to grow. This is due to several factors including – economic growth, congestion on roads, higher rents in city centres, causing more demand for commuting. Three interesting graphs from Social Trends vol 40. Source: Office of …
Readers Question Can you tell me: Is speculation on a hot real estate market a counterexample to the law of demand or indirect evidence of it? The Law of Demand One of the first things you learn in economics is the basic law of demand – When prices rise, people buy less. When prices fall, …
The Madness of Spending Money to Deal with CutsWatch this video on YouTube In the past two years, I’ve spent £450 fixing broken suspension on my car. I’m not the only one, Kwik Fit estimated the costs to motorists from pothole damage to be £1.7bn. Yet fixing roads has suffered from government cut backs, especially …
Since 2020, Spain has been one of Europe’s best-performing economies. Despite Covid, it has grown by 8%, outperforming the likes of the UK, Germany and France. In 2024, Spanish growth was an impressive 3.1%, (and according to the boast of a Spanish minister), accounting for 50% of all the EU’s economic growth. How the Spanish …
Since 1950, health care spending in the UK has increased dramatically in real terms (adjusted for inflation). In the post-war period, we have also seen a sharp rise in public health care spending as a % of GDP (from 3% in 1960 to 8% in 2019). Covid has led to another sharp rise in health …
Definition: Arc elasticity of demand measures elasticity between two points on a curve – using a mid-point between the two curves. On most curves, the elasticity of a curve varies depending on where you are. Therefore elasticity needs to measure a certain sector of the curve. Calculating Arc Elasticity of Demand To calculate arc elasticity …
A definition of the law of demand and explanation of why higher price leads to lower demand.
The demand for a good depends on several factors, such as price of the good, perceived quality, advertising, income, confidence of consumers and changes in taste and fashion. We can look at either an individual demand curve or the total demand in the economy. The individual demand curve illustrates the price people are willing to …