Demand-pull inflation occurs when the aggregate demand in an economy outpaces the aggregate supply, leading to an increase in the general price level.
Price elasticity measures the sensitivity of the quantity demanded of a good to a change in its price. It helps determine how changes in price affect total expenditure on that good in the market.
Tax incidence refers to the analysis of the distribution of the tax burden between buyers and sellers. It assesses who ultimately bears the economic burden of a tax.
