Contraction in Demand When there is a fall in the quantity demanded of a commodity because of an increase in its price by keeping other… Read More
Category Archives: Microeconomics
Expansion in Demand When there is an increase in the quantity demanded of a commodity because of a fall in its price by keeping other… Read More
The proportionate change in the quantity demanded of a commodity due to a proportionate change in the price of the commodity is called Price Elasticity… Read More
Demand refers to the quantity of a commodity the customer is willing and capable to purchase, at any given time and at each possible price.… Read More
What are Substitute Goods? The goods which can be used in place of one another to satisfy a specific want, like tea and coffee are… Read More
What are Substitute Goods? The goods which can be used in place of one another to satisfy a specific want, like tea and coffee are… Read More
What is the Law of Returns to Scale? Returns to scale refer to the change in output that results from a change in the factor… Read More
The demand for a commodity can be with respect to an individual and an entire market. However, Individual Demand is different from Market Demand. Individual… Read More
What are Normal Goods? The goods whose demand increases when there is an increase in the income of the consumer are known as Normal Goods.… Read More
What are Normal Goods? The goods whose demand increases when there is an increase in the income of the consumer are known as Normal Goods.… Read More
What is Budget Line? The term budget line refers to a graphical representation of all the potential combinations of two commodities that can be bought… Read More
While drawing a budget line, it is assumed that the income of the consumer and the price of the commodities is constant. Therefore, there will… Read More
What is Budget Line? A graphical representation of all possible combinations of two goods which a consumer can purchase with the given prices and income… Read More
In economics, demand is the quantity of a good or service that a consumer is willing and able to purchase at different price levels available… Read More
What is Returns to Factor? Returns to a factor refer to the rise in the total product that results from increasing just one factor while… Read More
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