Get premium membership and access questions with answers, video lessons as well as revision papers.
1. income- when someone's income increase purchase power increase when income decrease purchase also decrease.
2. availability of credit- where there is credit facilities demand is higher which leads to high supply. where there is no credit, demand lowers also supply.
3. price fluctuations- when price increase demand drops also supply goes down, when price drops demand increase and supply also goes up.
4. availability of alternative or competition - where there is alternative product, there is competition price goes down rising demand and supply.
5. government policy, government can subsidize production this lower price and increase demand and supply, where there is subsidy price is high demand low supply also low.
mwalimu caroline answered the question on March 22, 2019 at 07:52
- Explain the roles of parliament in budgetary process(Solved)
Explain the roles of parliament in budgetary process.
Date posted: March 9, 2019. Answers (1)
- List some effects of fiscal policy(Solved)
List some effects of fiscal policy.
Date posted: March 8, 2019. Answers (1)
- Explain the impact of trade protectionism(Solved)
Explain the impact of trade protectionism.
Date posted: February 27, 2019. Answers (1)
- State and explain seven types of unemployment(Solved)
State and explain seven types of unemployment
Date posted: February 27, 2019. Answers (1)
- Briefly explain the relationship between unemployment and inflation and which causes the other(Solved)
Briefly explain the relationship between unemployment and inflation and which causes the other.
Date posted: February 27, 2019. Answers (1)
- Define the various types of externalities(Solved)
Define the various types of externalities.
Date posted: February 25, 2019. Answers (1)
- How do distortionary taxes cause market failure(Solved)
How do distortionary taxes cause market failure
Date posted: February 25, 2019. Answers (1)
- Non-excludability property of pure public goods brings about the free rider problem. Explain(Solved)
Non-excludability property of pure public goods brings about the free rider problem. Explain
Date posted: February 25, 2019. Answers (1)
- What is a public good?(Solved)
What is a public good?
Date posted: February 25, 2019. Answers (1)
- Due to lack of information the government imposes distortionary taxes. What are the effects of such taxes?(Solved)
Due to lack of information the government imposes distortionary taxes. What are the effects of such taxes?
Date posted: February 25, 2019. Answers (1)
- Explain how the following cause non market failure (i) Limited control over market responses (ii) Limited control over bureaucracy (iii) Limitations imposed by the political process(Solved)
Explain how the following cause non market failure
(i) Limited control over market responses
(ii) Limited control over bureaucracy
(iii) Limitations imposed by the political process
Date posted: February 25, 2019. Answers (1)
- What are the causes of government failure?(Solved)
What are the causes of government failure?
Date posted: February 25, 2019. Answers (1)
- Briefly describe what is meant by non-market failure(Solved)
Briefly describe was is meant by non-market failure
Date posted: February 25, 2019. Answers (1)
- What are the functions of the government (public policy objective)(Solved)
What are the functions of the government (public policy objective)
Date posted: February 25, 2019. Answers (1)
- How does the government redistribute income?(Solved)
How does the government redistribute income?
Date posted: February 25, 2019. Answers (1)
- What is the role of the government in the market?(Solved)
What is the role of the government in the market
Date posted: February 25, 2019. Answers (1)
- Briefly explain income distribution as a source of market failure(Solved)
Briefly explain income distribution as a source of market failure
Date posted: February 25, 2019. Answers (1)
- What are the effects and the contribution of the excess tax burden to market failure?(Solved)
What are the effects and the contribution of the excess tax burden to market failure?
Date posted: February 25, 2019. Answers (1)
- Taxation leads to the excess tax burden. Briefly explain what the excess tax burden refers to.(Solved)
Taxation leads to the excess tax burden. Briefly explain what the excess tax burden refers to.
Date posted: February 25, 2019. Answers (1)
- How does tax system cause market failure?(Solved)
How does tax system cause market failure?
Date posted: February 25, 2019. Answers (1)