Let us suppose we have two simple supply and demand equations Qd = 20 – 2P Qs = -10 + 2P To find where QS = Qd we put the two equations together 20-2P = -10 + 2P 20+10= 4P 30/4=P P = 7.5 To find Q, we just put this value of P into …
About network license
About network license
I have spent past few weeks working on the new OCR A Level in economics revision guide. (H460) First teaching from Sept 2015. First A level exam Summer 2017. On the positive side, the syllabus is very detailed. OCR are very clear on what you need to cover. After doing AQA and Edexcel revision guides, …
Readers Question: I was really hoping you might be able to inform me of the effects that zero inflation (which the UK is currently experiencing) might have on aggregate demand in the economy? Firstly, this post will help consider the impact of zero inflation on AD and economic growth – Is zero inflation a good …
Definition of Avoidable Cost: A cost that can be avoided by not producing a particular good. For example, if you are building cars, avoidable costs would be the raw materials. If you stopped producing a car, you would no longer have to pay for the raw materials such as steel and aluminium. However, other costs …
Readers Question. I came across a company recently which farms mussels of the coast of a small town in Bulgaria, and I started thinking about its structure in the economy. I know since it produces a homogeneous product along with hundreds of other mussel farmers, it must be in perfect competition, however this mussel company …
“Readers Question – A microeconomics question. In you labour market section you discuss a monopsonist.You say that “in order to employ one extra worker the firm has to increase the wages of all workers”- why? You give a coal mine as a possible example of a monopsonist, do you really think that a coal mine …