Some of the earliest mentions of the tragedy of the commons date back as far as Aristotle. However, the British author William Forster Lloyd formally introduced the concept of "tragedy…
Public goods, unlike private commodities, possess unique attributes that underpin a fundamental economic challenge. These goods can be utilized by multiple individuals concurrently without diminishing in value. This fundamental quality…
The principal-agent problem sits at the nexus of several modern economic dilemmas. The scenario involves a principal, for example, a shareholder, who entrusts funds or resources to an agent, often…
Though it might seem trivial, information asymmetry plays a profound role in market dynamics, often causing significant issues. Asymmetric information manifests when one entity in an exchange holds a considerable…
Defined within the free market context, market failure denotes the ineffective allocation of goods and services. This imbalance transpires when the volume of services or goods supplied does not align…
Price control refers to government intervention in the market where a price higher or lower than the equilibrium price is fixed by the government to protect the interests of the…
Market equilibrium is a situation where the quantity demanded of a commodity is equal to its quantity supplied. The price and quantity associated with this equilibrium are known as equilibrium…
In economics, the concept of elasticity holds special significance. Economists deal with various types of elasticity such as price or income elasticities of demand. In many cases, it is preferred…
The theory of demand and supply includes the law of demand and the law of supply. These laws explain the behaviour of demand and supply in response to changing prices.…
