Thursday, 07 May 2015 21:56

Aggregate Demand - Video

Aggregate demand is one of the central concepts in macroeconomics. It is used to analyse changes in economic output and indicate the likely impact on other economic goals such as inflation, unemployment, budget balance and the balance of trade. Made up of consumption spending, investment spending, government spending and the balance of trade, aggregate demand measures the total value of spending within an economy over a period of time.

This video will take you through drawing the aggregate demand curve and the sorts of changes that might lead to a shift in the AD curve.

 

Published in The National Economy
Thursday, 04 July 2013 16:59

PED and Revenue

Price elasticity of demand (PED) is one of the key concepts when it comes to evaluating the impact of a demand/supply shift. The price elasticity of demand tells us no just whether price or quantity increases or decreases but how much demand for a product changes when price changes. This has an impact on revenue.

Sunday, 23 June 2013 21:25

Demand and Supply: Price Determination

Demand and supply are the foundation of AS micro and form part of unit 1 in the AQA specification. Demand is determined by the consumers' ability and willingness to pay for a good or service. Supply by producers' costs. Where these intersect determines the equilibrium or market clearing price.