Popular Questions - Economics

Aggregate supply is the supply of the whole economy. Aggregate supply is the supply of the whole economy, different to “supply” as it used to describe individual firm not the whole...

Scarcity and choice are important in economics because there would be no economy if there was no scarcity (limitation in resources) and no choice as to how these resources would be used. Scarcity...

Indifference curve of the substitutes are sloping downward with the constant Marginal Rate of Substitution. The Indifference curve of the substitutes are downward sloping with constant Marginal Rate...

Price rigidity exists in oligopoly as their interdependence on each other stops them from changing prices without losing their competitive edge. In the diagram above, P is the current market price a...

The canonical answer is an increase in the price of oil. Oil is used as an input in so many production processes, and we use fuel to transport ourselves and various goods. So, when the price of oil...

The model reflect interdependence by showing that what is spending for one agent is income for another. The circular flow model, in which families spend money in goods and services and receive money...