The goverment can increase

More goods are

There are now an

Prices therefore

Increasing market compeition also prevented

from setting high prices.

The government sets the maximum price of a good (below the

that sellers cannot legally

The goverment sets the minimum price above

that sellers can not legally sell

Minimum price is set above the Ep so there is a

surplus of goods

This encourages

because it gives sellers a gauranteed

The goverment can impose

taxes on firms.

This reduces monopolies

as they cant always pass on the burden of

on consumers - this is determined by

Producers will recieve market price plus

for the sale of their good.

Producers costs are

there supply

and the price

Subsidies can be used to persuade monopolies to increase

to a

level

Large numbers of

Large number of

Word for identical products [homo... products]

No barriers to entry

of market.

Perfect

Gross domestic product is the total value of

in a country.

It is the value of all

by

GDP is used to measure the total economic

of a country.

Aggregate demand increases at

If output

sellers will

prices

The government can

This will reduce

by discouraging

Less money will therefore be spent on

as a result prices will

The government can

and

Consumers will have less

and therefore aggregate demand

and prices