Elasticity and inelasticity of demand and supply is a subject matter of micro economics. If the demanded quantity changes in response to the changes in other variables like taxes or incentives regarding that product, the demand of that product is deemed to be elastic. If there is no changes observed, it becomes inelastic. Same pattern […]
Most of the time, product doesn’t carry the actual value to the consumer without affecting the well-being of bystanders. If it does so, it becomes externality. And, If the bystanders has been influenced either positively or negatively, it gets classified as “Positive and negative externalities”. In reality, it is really difficult to believe that market
How are opportunity cost and comparative advantage interlinked? What is mean by opportunity cost? How does opportunity cost influence decisions? Why are they important for free trade? If you think that these questions are worthwhile, then, let’s begin to explore.. “Scarcity–choices–opportunity cost–comparative advantage–specialisations–economies of scale–free trade system” Description and meaning of opportunity cost In our