Suppose a firm adopts technology that allows its output to increase by 15%. If the price...

The marginal rate of substitution shows how quickly a person will substitute or replace one product for a different one. Study the definition, formula, and examples of the marginal rate of substitution, how producers use it, and differing quantities.

Understand what elasticity of demand is and discover different types of elasticity of demand. Learn how it is measured and review the elasticity of demand formula.

Learn about what goes on an income statement and its format, including how to prepare, what is shown, and examples. Discover the importance of income statements.

Discover what a normal good is, know the definition of an inferior good and see examples of normal goods and inferior goods. Read about the demand curves for inferior goods and normal goods.

To be successful, businesses must prepare for the future, using a strategic plan that considers their long-run goals. Learn how to understand long-run production decisions in economics. Gain understanding by reviewing the definition of long-run production, importance of innovation, and examples of long-run production.

In microeconomics, market equilibrium is the point at which demand and supply are equal at a certain price level. Learn about the definition and graph of market equilibrium, and explore the shifts in supply and demand as equilibrium changes.

What is inelastic demand? What is the economic significance of an inelastic demand? Learn about inelastic demand, and its impact on economic decision making.

Learn the definition of unit elastic in economics. Understand what unit elastic means in terms of supply and demand with the help of graphs and relevant examples.

Understand the difference between postive vs normative statements. Using positive and normative economics examples learn about positive economic analysis.

A legal monopoly, where a single entity provides a given service with no competition, occurs when governments allow businesses to hold the monopoly so that they may monitor and regulate related activities, rates, and policies. Learn more about the definition of a legal monopoly and discover the factors that affect legal monopolies.

In economics, indifference curves show which goods in the marketplace bring equal satisfaction to consumers, leaving them indifferent to which goods they purchase. Explore the definition, learn about their use and impact in economics, and review how they work.

Price elasticity of demand (PED) measures how responsive consumer activity and demand are to price changes. Identify the formula and application of this concept specifically in the hospitality and tourism industry.

Learn about short run vs. long run economics. Examine the definitions of short run and long run economics, and study examples of short and long run costs.

In this lesson, learn the foreign exchange rate definition and understand how exchange rates are determined. See the factors affecting spot exchange rates.

The elasticity of supply refers to the responsiveness of the supply of a commodity to the changes in its price. Learn more about elasticity and discover the factors that affect the elasticity of supply.

What is the price elasticity of demand formula? Understand its relevance with the demand of a good, as well as how to calculate price elasticity via examples.