Day: October 23, 2020

With a given import quota, an increase in demand will result in a higher domestic price and greater domestic production and lower consumption; however, with a given import tariff, an increase in demand will increase consumption and imports. An import Read More …

Effective market separation e.g in terms of time, age, geographical location etc. Absolute control over supply. Different price elasticity of demand in different markets.

Price discrimination with a view to increasing total revenue by charging a higher price in the relatively price inelastic (or low elastic demand) market and a lower price in the elastic demand market. Government’s indirect tax policy with a view Read More …

The balance of Payments of a country is a record of all financial transactions between residents of that country and residents of foreign countries. (Residents‟ in this sense does not just refer to individuals but would also include companies, corporations Read More …

For a country to become richer or less poorer, it must increase it production of goods and services by putting to good use its available productive resources. Efficiency in resource use is achieved through specialization. Under specialization an individual an Read More …