Quardant 1: Demand and its determinents
"Demand" means to "ask for urgently." That said, the concept of demand takes on a very particular, and somewhat different, meaning in economics. Economically speaking, to demand something means to be willing, able, and ready to purchase a good or service.
Demand and its determinents00:5:00
Quardant 2: Economic Systems
An economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country. Economic systems regulate the factors of production, including land, capital, labor.
Quardant 2: Pricing Strategies
Price is the value that is put to a product or service and is the result of a complex set of calculations, research and understanding, and risk-taking ability. A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins, and input costs, amongst others. It is targeted at the defined customers and against competitors.
Quardant 1: Types of demand
We will learn about the types of demand
Quardant 2: Inflation
Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc. Inflation measures the average price change in a basket of commodities and services over time.
Quardant 4: Assignments
Law of Variable Proportion
Law of Variable Proportions occupies an important place in economic theory. This law is also known as the Law of Proportionality.
Keeping other factors fixed, the law explains the production function with a one-factor variable. In the short run when the output of a commodity is sought to be increased, the law of variable proportions comes into operation.
Elasticity of demand
Elasticity refers to the relative responsiveness of a supply or demand curve in relation to price: the more elastic a curve, the more quantity will change with changes in price. In contrast, the more inelastic a curve, the harder it will be to change the quantity consumed, even with large changes in price.
Quadrant 2: Scarcity and Choice
Scarcity refers to the finite nature and availability of resources while choice refers to people's decisions about sharing and using those resources. The problem of scarcity and choice lies at the very heart of economics, which is the study of how individuals and society choose to allocate scarce resources.
Quadrant 2: Income Elasticity and Cross elasticity of demand
Income elasticity of demand – which measures how demand responds to a change in income – is always negative for an inferior good and positive for a normal good. ... Cross elasticity of demand measures the responsiveness of demand for one commodity to changes in the price of another good
Quadrant 2: Market equilibrium
In economics, economic equilibrium is a situation in which economic forces such as supply and demand are balanced and in the absence of external influences the values of economic variables will not change
Quadrant 2: Law of Variable Proportion
The Law of Variable Proportions or Returns to a Factor plays an important role in the study of the Theory of Production. In this article, we will look at the meaning, explanation, stages, significance, and reasons behind the operation of the Law of Variable Proportions.
Quadrant 2: Production function
In economics, a production function relates physical output of a production process to physical inputs or factors of production. It is a mathematical function that relates the maximum amount of output that can be obtained from a given number of inputs – generally capital and labor.
Quadrant 2: Producer surplus and consumer surplus
The difference between a consumer's marginal benefit for a unit of consumption, and what they actually pay, represents how much benefit a consumer get's from the price they are paying. Producer surplus represents the difference between the price a seller receives and their willingness to sell for each quantity.
Quadrant 2: Concept of indifference curve
An indifference curve is a graph showing a combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.
Quadrant 2: Properties of indifference curve
It is the locus of points representing pairs of quantities between which the individual is indifferent, so it is termed an indifference curve.” It is, in fact, an iso-utility curve showing equal satisfaction at all its points. A single indifference curve concerns only one level of satisfaction.
Quadrant 2: Concept of costs
Cost, in common usage, the monetary value of goods and services that producers and consumers purchase. ... In a basic economic sense, the cost is the measure of the alternative opportunities foregone in the choice of one good or activity over others. This fundamental cost is usually referred to as opportunity cost
Quadrant 2: Short term cost curves
There are seven cost curves in the short run: fixed cost, variable cost, total cost, average fixed cost average variable cost, average total cost, and marginal cost. The fixed cost (FC) of production is the cost of production that does not vary with the output level.
Quadrant 2: Long term cost curves
The long-run cost curve is a cost function that models this minimum cost over time, meaning inputs are not fixed. Using the long-run cost curve, firms can scale their means of production to reduce the costs of producing the good.
Quadrant 2: Perfect Competition
Pure or perfect competition is a theoretical market structure in which the following criteria are met: All firms sell an identical product (the product is a "commodity" or "homogeneous"). All firms are price takers (they cannot influence the market price of their products). Market share has no influence on prices.
Quadrant 2: Monopoly
A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.
Quadrant 2: Monopolistic Competition
Monopolistic competition characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors.
Quadrant 2: Oligopoly
Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms. A monopoly is one firm, a duopoly is two firms and an oligopoly is two or more firms.
Quadrant 2: Concept of Interest
Interest is the monetary charge for the privilege of borrowing money, typically expressed as an annual percentage rate (APR). Interest is the amount of money a lender or financial institution receives for lending out money.
Quadrant 2: Concept of Wages
In economics, the price paid to labour for its contribution to the process of production is called wages. ... Labour is an important factor of production.