I need an answer to this questions.
1. Why do economists believe we live in a world of scarcity, while the economy at the same time must determine what goods and services will be produced, how will they be produced and who will receive these goods and services?
2. Please explain the concepts of supply and demand and how equilibrium is achieved?
3. Define price elasticity of demand and discuss how it is measured?
4. How do economists measure the satisfaction people derive from consuming goods and services, and why satisfaction declines the more we consume?
5. explain the conditions under which a market is considered perfectly competitive
6. What are the similarities and differences between the characteristics of the perfectly competitive and the monopolistically competitive markets?
1…In a centrally planned economy, all the resources are owned and managed bygovernment. Also Government decides what to produce, how much to produce and forwhom to produce.In a market economy,…