A. Whose quality is low B. Consumed by very poor people C. Whose consumption falls when cunsumers’ income rises ✓...
ECONOMICS
It is the degree of responsiveness of demand for one commodity as a result of a change...
“It is the degree of responsiveness of demand for goods to a change in income”. It is...
If elasticity is zero, demand curve is perfectly inelastic. If elasticity is infinite, demand curve is perfectly...
Introduction It is necessary to review or recall (repeat) the relationship between demand and price. “Demand has...
Index is a system that shows level of variable (item) especially price, cost, wages, etc so that...
It is a theory that shows direct relationship between money supply and the price level. It is...
Value of money “It is the quantity of goods and services a unit of money can buy...
It is a curve that shows various possible combinations of two goods in which a consumer is...
The law of diminishing marginal utility is based on the following consideration or assumption: “As the amount...
They include the following:- Total Utility. Average Utility. Marginal Utility. 1) Total Utility It is the...
Introduction Supply of and demand for money are quite distinct concepts (different things) from supply of and...
UTILITY In economics, utility means: “Amount of satisfaction which a consumer derives (obtains) from the consumption of...
All the different cost concepts discussed are interrelated in a number of ways. They can easily be...
Relationship between TFC, TVC and TC The diagram, figure 8, given below shows the graphical relationship between...
Short Run Costs (SRCs) Short run costs are costs which a firm incurs during its short run...
Total cost is the total (entire or all) expenses incurred in the process of production. It is...
Variable costs are costs that vary with output (quantity produced in a period), thus as output increases,...
Fixed cost are costs incurred in acquiring capital goods or fixed factors of production (fixed assets), e.g....
Cost is a bit elusive (not very easy) to define. Literally, a cost, from the point of...
Introduction Before we discuss the law of variable proportion or law of diminishing return, we wish to...
Definition Revenue is amount of money which individual, firm or government realizes (obtains) in a given period,...
Definition “Production Possibility Boundary (PPB) is a curve that shows the alternative combination of goods that a...
‘The sum of expenditures of individuals, firms, governments and foreigners gives the expenditure calculated GDP.’ It involves...
‘The sum of rent, salary, interest and profit gives the lion share of the income -calculated GNP’...
“The sum of values of goods and services created in the economy gives the output calculated GDP.”...
Availability of natural resources: A country with abundance of natural resources will experience increase in national income...
Wages and Salary are rewards for labour’s services. They are amount of money paid to labour for...
Introduction Unemployment exists if the number of people who are willing to work and seeking jobs exceeds...
Employment It is an act of giving jobs to people by an institution (company) in return for...
Introduction Demand for labour is a derived demand. Labour is not needed for his own sake but...
Definition It is the total number of people (members of labour force) who make their services available...
Definition of Market A market is a point of contact, place or any means of communication whereby...
Investment may be defined as expenditure on physical assets which are not for immediate consumption but for...
Cost of Living It is the total amount of money which a household (a consumer or an...
National Income Accounting refers to “Measurement of National Income”. It is the compilation of all incomes earned...
The following are some of the important conditions under which a monopolist operates. He is faced with...
It is a market structure with many firms which produce heterogeneous products (branded goods) that are sold...
Price discrimination (PO) occurs when units of the same product are sold at different prices not on...
A Monopoly is a market situation in which there is only one firm producing and selling a...
A decrease in demand If there is a decrease in demand; say from DI to D2, the...
Determination of equilibrium price and quantity in a market Equilibrium in a market Equilibrium means a state...
Change in quantity supplied A change in quantity supplied is a change that occurs as a result...
The quantity of goods supplied varies from time to time. The following are some of the factors...
The following are the major types of supply. 1) Joint supply – Goods produced together: It is...
Theory of supply, like theory of demand, is aimed explaining all important aspects of supply, especially law...
Change in quantity demanded It is a change that occurs as a result of a change in...
The following are the major factors that influence (affect) demand for a commodity. Consumer’s income: The most...
The major types of demand are outlined below: 1) Joint or Complementary demand – demand for goods...
1) Inferior Goods “Inferior goods are goods whose demands fall as income rises”. In other words, they...
