An oligopoly is a market structure characterized by a small number of firms that dominate the market and produce most or all of the output. In an oligopoly, the actions and decisions of one firm can have a significant impact on the others, leading to interdependence among the firms.
The term "Non-Tariffs" is a broad category that refers to trade barriers that do not involve the imposition of tariffs or taxes on imports or exports. Non-tariff barriers encompass various measures and regulations implemented by governments to restrict or regulate trade.
The fiscal policy changes levels of taxation and government spending in order to control the economy.
Fiscal policy refers to the use of government spending and taxation to influence the overall health and stability of the economy. Through fiscal policy, governments can adjust tax rates and government spending levels to impact aggregate demand, economic growth, employment, and inflation.
The agreement by 117 countries to reduce trade barriers is indeed the Uruguay Round.
The Uruguay Round was a series of negotiations conducted under the General Agreement on Tariffs and Trade (GATT) between 1986 and 1994. The goal of the Uruguay Round was to address various issues related to international trade, including reducing trade barriers, expanding market access, and establishing new rules and disciplines for global trade.
A price increase does not directly lead to a lower supply. In fact, it often incentivizes suppliers to increase their supply. The relationship between price and supply is described by the law of supply, which states that there is a positive relationship between the price of a product and the quantity supplied, ceteris paribus (all other factors remaining constant).
When the price increases, the quantity demanded typically falls. This relationship is described by the law of demand, which states that there is an inverse relationship between the price of a product and the quantity demanded, ceteris paribus (all other factors remaining constant).
The law of demand is based on the observation that as the price of a product rises, consumers generally tend to purchase less of it, assuming all other factors influencing demand, such as income and preferences, remain constant. This is because higher prices make the product relatively more expensive compared to other alternatives, leading consumers to seek substitutes or reduce their overall quantity demanded.
