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.

Monday, 24 June 2013 13:19

Causes of Government Failure

Government failure happens when the government intervenes to correct for a particular market failure but for various reasons ends up making the situation worse. It is an important concept when it comes to evaluating the effectiveness of government intervention.

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.