In this post, I will cover how to find the equilibrium quantity and price when given an equation representing the…

## Price floor and tax on cheese market

Price floor on the cheese marketTax on the cheese market Price floor on the cheese market Suppose that the government…

## Supply schedule

In economics, the term ‘supply’ is used to describe how many goods and services people are willing to sell for…

## Equilibrium price and quantity after tax

The imposition of a tax in a simple supply and demand framework results in a decrease in the quantity of…

## Economic expansion path

The “expansion path” describes how the optimal combination of inputs increase in response to an increase in output, holding all…

## How to calculate expenditure elasticity

The expenditure elasticity is a measurement of how expenditure on a good changes in response to a price change. The…

## Cross price elasticity of demand

Cross-price elasticity formulaComplementary goodSubstitute good Cross-price elasticity formula The cross-price elasticity of demand measures the responsiveness of a good to…

## Types of price elasticity of demand

The elasticity of demand ($$E_D$$) measures the responsiveness of demand to a change in price. It is defined as the…

## MaxiMin Strategy/MiniMax strategy

In game theory, Maximin/Minimax are strategies used when playing games. The strategy in this case is to maximize the smallest possible…

## Consumer part of dead weight loss, Producer part of dead weight loss and total dead weight loss

This post will cover dead weight loss. In particular, what is the burden on consumers and producers. The following supply-and-demand…