Opportunity cost – Overview and Explanation
What is opportunity cost? Opportunity cost is a fundamental concept in economics that…
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Microeconomics
Microeconomics studies how individuals and businesses make choices in a market economy. It examines resource usage, production, and pricing. The concept of supply and demand is vital as it determines pricing and production based on buyers and sellers.
Basic Microeconomics Principles
What is specialization and trade? Explanation and Overview.
In this article, we’re gonna talk about specialization and trade. Specialization and trade…
How to Expand the Production Possibilities Frontier (PPF)?
In this article, we’re gonna discuss how the production possibilities frontier can be…
What causes production inefficiency? China’s inefficiency problem.
Inefficient production is a production where all the resources are not used efficiently.…
How Do You Achieve Production Efficiency?
In this article, we’re going to talk about production efficiency in economics. So…
What is Meant by Allocative Efficiency? Overview & Explanations.
In this article, we’re going to discuss the concept of Allocative Efficiency. When…
Supply & Demand
The Effects of a Simultaneous Change in Demand and Supply.
We’re gonna see that what happens when there’s a simultaneous change in both…
How Substitutes and Complements Goods Affect Demand Curve
In this article, we’re going to discuss substitutes and complements in economics. The…
Normal vs Inferior Goods. Definition Example and Overview
We know that a change in people’s income is going to affect demand,…
Change in Supply vs Change in Quantity Supplied. Overview and Explanation
In this article, we’re going to discuss the difference between a change in…
Change in Supply, Supply Schedule and its Relation to Price.
Let’s talk about how to graph a change in supply. So a change…
Change in Demand vs Change in Quantity Demanded. Overview and Explanation
In this article, we’re going to talk about the difference between a change…
Elasticity
How to Measure the Elasticity of Supply. Overview and Explanation.
The elasticity of supply is a measure of how responsive the quantity supplied…
How to Calculate the Cross Elasticity of Demand. Overview and Explanation
The cross elasticity demand tells you what happens to the demand of one…
How to calculate the Income Elasticity of Demand. Overview and Explanation
How to calculate the income elasticity of demand? So income elasticity of demand…
Difference between elastic and inelastic demand. Explanation and Overview
In this article, we’re going to discuss the difference between elastic and inelastic…
How to Calculate Price Elasticity of Demand. Overview and Explanation
The price elasticity of demand is basically just a fraction, it’s just a…
Efficiency Equity & Resource Allocation
The Effect of a Price Support in Economics. Overview and Calculations
Table of Content 1. Understanding the Market 2. Market Floor & Price Support…
The Effects of Price Floor in the Economics. Overview and Explanation
Understanding Market Let’s take the market for wheat for example and so I’ve…
The Effects of Price Ceiling in Economics. Overview and Explanation
Price Ceiling Let’s think about the market for a college education in the…
Consumer and Producer Surplus. Overview and Explanation
Table of Content 1. Consumer surplus 2. Producer Surplus 3. Market Surplus 4.…
6 Types of Market Failures in Economics
A market failure is a case when the free market just left to…
3 Types of Efficiency in Economics. Overview and Explanation
Assuming there’s not a market failure such as a monopoly or an externality,…
Global Markets
The Effect of an Import Tariff in Economics
In this article, we’re going to discuss the effect of an import tariff…
How Countries Benefit from Free Trade. Gains from Exports
In this article, we’re gonna talk about how a country can gain from…
How Countries Benefit from Free Trade. Gains from Imports
In today’s article, we’re gonna talk about how a country can gain from…
Externalities & Public Goods
Individual Transfer Quotas (ITQs). How do ITQs work?
Table of Content 1. How does ITQs Help Reduce Overfishing? 2. How to…
Common Goods (Common Resources) in Economics. Overview and Explanation
A common resource is a resource that has two characteristics. Non-excludable Rivalrous I…
The Efficient Provision of Public Goods. Explanation and Overview
We’ve been discussing how public goods can lead to a market failure because…
Public Goods in Economics. Overview and Explanations
A public good is any type of good that is both nonrivalrous and…
All About Coasian Bargaining Theorem. Assumptions, Examples and Limitations
Previously we’ve been talking about how negative externalities can create a problem because…
Cap and Trade vs. Carbon Tax. Which System Would be Better
The topic we’re gonna discuss is the difference between a cap-and-trade policy and…
Applied Economics
Capital Intensive Definition, Pros and Cons
Capital intensive is a term that describes a production process that requires a…
Gross Domestic Product (GDP) Definition, Formula and Importance
What Is Gross Domestic Product (GDP)? Gross Domestic Product (GDP) is a key…
Barriers to exiting a market in Economics
What are the barriers to exiting a market? Barriers to exit refer to…
Absolute advantage Overview and Explanation
What is Absolute advantage? Absolute advantage is a concept in international trade that…
Economics of Housing Vouchers (Section 8). Overview and Explanation
Some countries use housing vouchers as a way to ensure that all families…
How Fracking works and its effects in economics.
Fracking is a really good way to understand how supply and demand work…
