In economics, the law of supply and demand, the quantity demanded of a good or service increases if its price falls. To see how strong this effect is, we can use the concept of elasticity. More specifically, the price elasticity of demand (PED). Depending on what we are analyzing, different […]
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Comparative Advantage and Trade
We live in a globalized world where virtually all countries interact and engage in trade. Most of them have various trade connections with a multitude of different countries. As a consequence, there is a significant amount of competition. This raises the question of how smaller countries with relatively weak economies […]
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