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CAPITAL MARKETS
Markets in which financial resources (money, bonds, stocks) are traded i.e. the provision of longer term finance - anything from bank loans to investment in permanent capital in the form of the purchase of shares. The capital market is very widespread.
It can also be defined as the institution through which, together with financial intermediaries, savings in the economy are transferred to investor.
Factors determining Elasticity of demand Ease of substitution. Nature of the commodity i.e. whether it is a necessity of life, luxury or addictive. Consumers
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Importance of Cross Elasticity Knowledge of cross elasticity is necessary when the government wants to impose a tariff on an imported commodity to protect a domestic industry.
p=10, TC= 1000+2Q+.01Q^2, Q=?
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