The diagram shows the demand for and supply of cream. The original equilibrium is point X. Strawberries and cream are complementary goods. If the price of strawberries falls and the cost of producing cream increases which point represents the new equilibrium?

Which measure is specifically designed to reduce divergences between private and social costs?

What could prevent a market failure?

Extra fishing boats start to operate from a local harbour which depends on fishing for its main income. Which action …

Explain the factors that are likely to make the supply of a product relatively price inelastic.

Explain what is used as money in a modern economy. Consider how an increase in the money supply can cause inflation.

Which is an internal economy of scale?