Positive and Normative Economics
Economist often differentiate between positive and normative economics as they prefer to focus on the area of positive economics instead…
Category: Microeconomics
Consumer surplus, producer surplus and Dead weight loss with inelastic supply curve
This is probably the question which is answered wrong most frequently by students when completing homework based on consumer and…
Why does the demand curve slope downwards
The demand curve describes the relationship between price and quantity. It states how much of a good a consumer is…
Why price floors reduce social surplus
Price floors are a mandated minimum price that firms are allowed to charge for a product. It ensures that all…