Its my own views and its yours pray

1. By: Imtiaz Hussain Rajar
Imtiazhussain.rajar@yahoo.com
Contact:03473984447

2. Economics is a science of wealth.
“Wealth means goods and services
transacted with help of wealth.”
Wealth has four aspects.
born: June 5, 1723
birthplace: Kirkcaldy,
Scotland
died: July 17, 1790

3. 1. Production of wealth: this shows how goods
and services are produced by using factors.
Land is all natural resources that are extracted
from earth or natural resources.
Labour is the human capital or all human
effort is production of goods and services.
 Capital are goods used in production of other
goods. These include machinery, tools and
building. They are made by man to help
production and they are not consumed
immediately.
Enterprise or entrepreneur is the factor or
person who combines other factors of production
(i.e. land, labour and capital) for producing goods
and services.

4. 2. Exchange of wealth: producers produce many
goods and services to exchange with other goods
and services which are produced by others.
3. Distribution of wealth: which means the
distribution of goods and services among
different sections or individuals of a society.
4.Consumption of wealth: using up the utility of
goods and services for the satisfaction of wants
is called the consumption of wealth.

5.  Demand: if you demand something, then do
you?
1. Want it
2. Can you afford it
3. Have made a definite plan to buy it.
 what is quantity demand?
 The quantity demand of goods and services
is the amount that consumers plan to buy
during a given time period at a particular
price.

7.  The law of demand states: other things
remaining the same, the higher the price of a
good, the smaller is the quantity demand.
 Why higher price reduce the quantity
demanded?
 There are two reasons.
1. Substitution effect.
2. Income effect.

8.  When any factor that influences buying plans
other than the price of the good
changes, there is change in demand.
 Factors that bring change in demand.
1. Price of related goods.
i. Price of substitute good: A substitute is
good that can be used in place of another
good, i.e. tea is substitute for coffee.
ii. Price of complement good: A complement
is a good that is used in conjunction with
another good, i.e. CNG and car, horse and
horse carriage etc.

9. 2. Expected Future Prices: if the price of
good is expected to rise in future and if the
good can be stored, people will buy less of
good at current and more in future, so
demand curve will shift to left (mean
decreases).
3. income: when income increases, consumers
buy most of goods and when income
decreases, they buy less of most goods.

10. 4.Population:demand also increases or
decreases or shift due to change in
population.
5.Preference or taste:preferences are
an individual’s attitudes towards goods
and services.

11.  If the price of a good changes but every thing
else remains the same, there is a movement
along of the demand curve.
Price Quantity of
pen demanded of pen
5 90
10 80
15 70
20 60
25 50
30 40

13.  Shift of demand curve: if the price of a good
remains same but some other influence on
buyers, plan to change in demand for that
good.

14. The total amount of a product (good
or service) available to sell at any
given time.

15.  When any factor that influences selling plans
other than the price of the good changes,
there is change in supply.

16. 1. Price of productive resources.
2. Prices of related goods produced.
3. Expected future prices.
4. The number of suppliers.
5. Technology.

17. .