ECONOMICS

  • CROSS ELASTICITY OF DEMAND
    ECONOMICS

    CROSS ELASTICITY OF DEMAND

    It is the degree of responsiveness of demand for one commodity as a result of a change in the price of another. It is the measure of effect of a change in demand for one commodity as…

  • INCOME ELASTICITY OF DEMAND
    ECONOMICS

    INCOME ELASTICITY OF DEMAND

    “It is the degree of responsiveness of demand for goods to a change in income”. It is the extent to which demand changes as a result of increase or decrease in income. Additional income is mostly spent…

  • MEASURING PRICE ELASTICITY
    ECONOMICS

    MEASURING PRICE ELASTICITY

    If elasticity is zero, demand curve is perfectly inelastic. If elasticity is infinite, demand curve is perfectly elastic. And if elasticity is unitary, demand curve gently slopes downwards. If demand is elastic, consumers react more proportionately to…

  • ELASTICITY OF DEMAND
    ECONOMICS

    ELASTICITY OF DEMAND

    Introduction It is necessary to review or recall (repeat) the relationship between demand and price. “Demand has inverse relationship with price”. That is, a rise in price causes a fall in quantity demanded, and vice versa. And…

  • INDEX
    ECONOMICS

    INDEX

    Index is a system that shows level of variable (item) especially price, cost, wages, etc so that they could be compared with previous date.   Index Number It is a number that shows the value (size) of…