The document discusses key concepts in business economics including definitions of business economics, the scope of business economics, applications of business economics, economic concepts used, consumer behavior theory, demand analysis, production theory, costs, and market structures. It provides definitions and explanations of concepts such as utility, indifference curves, demand elasticity, production functions, laws of returns, and perfect competition. The document is serving as a reference material for a business economics course covering these fundamental topics.
Scope of business economics, no uniformity of views exists among various authors. However, the following aspects are said to generally fall under business economics.
1. Demand Analysis and Forecasting
2. Cost and production Analysis.
3. Pricing Decisions, policies and practices.
4. Profit Management.
5. Capital Management.
Business Economics
• According to Mc Nair and Meriam, Business economic consists of the use of economic modes of thought to analyse business situations. • Siegel man has defined business economic (or business economic) as the integration of economic theory with business practice for the purpose of facilitating decision-making and forward planning by management
Business is influenced not only by what decisions are taken within the firm but also by the general business environment. General decisions are based on two factors : • External Factors : This includes all those factors which are outside the control of business. The firm can only make timely adjustment to these external factors. • Internal Factors : This includes all those factors which are within the control.
Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation.
The objective of the course is to familiarize students with the different aspects of managing Human Resources in the organization through the phases of acquisition, development and retention
Strategic Management
A set of managerial decisions and actions that determines the long-run performance of a corporation. Includes: Internal and external environment scanning Strategy formulation Strategy implementation Evaluation and control.
Strategic Management
A set of managerial decisions and actions that determines the long-run performance of a corporation. Includes: Internal and external environment scanning Strategy formulation Strategy implementation Evaluation and control.
Scope of business economics, no uniformity of views exists among various authors. However, the following aspects are said to generally fall under business economics.
1. Demand Analysis and Forecasting
2. Cost and production Analysis.
3. Pricing Decisions, policies and practices.
4. Profit Management.
5. Capital Management.
Business Economics
• According to Mc Nair and Meriam, Business economic consists of the use of economic modes of thought to analyse business situations. • Siegel man has defined business economic (or business economic) as the integration of economic theory with business practice for the purpose of facilitating decision-making and forward planning by management
Business is influenced not only by what decisions are taken within the firm but also by the general business environment. General decisions are based on two factors : • External Factors : This includes all those factors which are outside the control of business. The firm can only make timely adjustment to these external factors. • Internal Factors : This includes all those factors which are within the control.
Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation.
The objective of the course is to familiarize students with the different aspects of managing Human Resources in the organization through the phases of acquisition, development and retention
Strategic Management
A set of managerial decisions and actions that determines the long-run performance of a corporation. Includes: Internal and external environment scanning Strategy formulation Strategy implementation Evaluation and control.
Strategic Management
A set of managerial decisions and actions that determines the long-run performance of a corporation. Includes: Internal and external environment scanning Strategy formulation Strategy implementation Evaluation and control.
The paper needs to be taught in light of the New Companies Amendment Act 2013. The Companies act 1956 has not been repealed. The New Act of 2013 is made applicable by notifications as to particular sections by the Ministry of Company Affairs. The
notified sections which replace the provisions of Companies Act 1956 will be highlighted
Trade and Commerce have always been at the foundation of every civilization. No society can develop and prosper without its citizens conducting business transactions.
Meaning of Financial Management
• Managerial activities which deals with planning and controlling of firms and financial sources. • Financial management is an area of financial decision making, harmonising individual motives and enterprise goals.
What is Business
• A business is usually defined as a commercial enterprise • Some are run by only one person who carry out all of the required functions • Others employ thousands of people and provide goods and services to people all over the world • Each business can be defined or described by its type of ownership, the goods produced or services offered, the types of jobs provided, or the functions it performs in a community.
Managerial economics deals with the application of the economic concepts, theories, tools, and methodologies to solve practical problems in a business. ... As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression analysis, correlation and calculus.
Production Management & Total Quality Managementcpjcollege
Principles of Forecasting
Many types of forecasting models that differ in complexity and amount of data & way they generate forecasts: 1. Forecasts are rarely perfect 2. Forecasts are more accurate for grouped data than for individual items 3. Forecast are more accurate for shorter than longer time periods.
Business environment means all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations. An example of a part of a business environment is how well customers' expectations are met.
Capital Investment
• Capital investment refers to funds invested in a firm or enterprise for the purpose of furthering its business objectives. Capital investment may also refer to a firm's acquisition of capital assets or fixed assets such as manufacturing plants and machinery that is expected to be productive over many years. Sources of capital investment are manifold and can include equity investors, banks, financial institutions, venture capital and angel investors.
Juxt Consult India Employee Speak 2007 Current Hr TrendsJuxtConsult
One of the ‘biggest’ annual syndicated study tracking employment trends, employee engagement cycle and corporate perceptions among the white collar employees in India
Cost and management accounting• Provides management with costs for products, inventories, operations or functions and compares actual to predetermined data • It also provides a variety of data for many day-to-day decision as well as essential information for long-range decisions
The paper needs to be taught in light of the New Companies Amendment Act 2013. The Companies act 1956 has not been repealed. The New Act of 2013 is made applicable by notifications as to particular sections by the Ministry of Company Affairs. The
notified sections which replace the provisions of Companies Act 1956 will be highlighted
Trade and Commerce have always been at the foundation of every civilization. No society can develop and prosper without its citizens conducting business transactions.
Meaning of Financial Management
• Managerial activities which deals with planning and controlling of firms and financial sources. • Financial management is an area of financial decision making, harmonising individual motives and enterprise goals.
What is Business
• A business is usually defined as a commercial enterprise • Some are run by only one person who carry out all of the required functions • Others employ thousands of people and provide goods and services to people all over the world • Each business can be defined or described by its type of ownership, the goods produced or services offered, the types of jobs provided, or the functions it performs in a community.
Managerial economics deals with the application of the economic concepts, theories, tools, and methodologies to solve practical problems in a business. ... As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression analysis, correlation and calculus.
Production Management & Total Quality Managementcpjcollege
Principles of Forecasting
Many types of forecasting models that differ in complexity and amount of data & way they generate forecasts: 1. Forecasts are rarely perfect 2. Forecasts are more accurate for grouped data than for individual items 3. Forecast are more accurate for shorter than longer time periods.
Business environment means all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations. An example of a part of a business environment is how well customers' expectations are met.
Capital Investment
• Capital investment refers to funds invested in a firm or enterprise for the purpose of furthering its business objectives. Capital investment may also refer to a firm's acquisition of capital assets or fixed assets such as manufacturing plants and machinery that is expected to be productive over many years. Sources of capital investment are manifold and can include equity investors, banks, financial institutions, venture capital and angel investors.
Juxt Consult India Employee Speak 2007 Current Hr TrendsJuxtConsult
One of the ‘biggest’ annual syndicated study tracking employment trends, employee engagement cycle and corporate perceptions among the white collar employees in India
Cost and management accounting• Provides management with costs for products, inventories, operations or functions and compares actual to predetermined data • It also provides a variety of data for many day-to-day decision as well as essential information for long-range decisions
Business Environment and Ethical Practices (BBA LLB 213 )cpjcollege
The objective of the course is to familiarize students with the different aspects of business environment and ethical practices to be adopted by organizations in conducting their business.
Marketing Environment is the combination of external and internal factors and forces which affect the company's ability to establish a relationship and serve its customers. The marketing environment of a business consists of an internal and an external environment.
Marketing Environment
Philip Kotler : “A company marketing environment consists of the factors and forces that affect the company’s ability to develop and maintain successful transactions and relationships with its target customers”.
WHAT IS A SERVICE • It is the part of the product or the full product for which the customer is willing to see value and pay for it. • It is intangible. • It does not result in ownership. • It may or may not be attached with a physical product
WHAT IS A SERVICE • It is the part of the product or the full product for which the customer is willing to see value and pay for it. • It is intangible. • It does not result in ownership. • It may or may not be attached with a physical product • Health Care – hospital, medical practice, dentistry, eye care • Professional Services – accounting, legal, architectural • Financial Services – banking, investment advising, insurance • Hospitality – restaurant, hotel/motel, bed & breakfast • Travel – airline, travel agency, theme park
Operations Management • Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. Operations management teams attempt to balance costs with revenue to achieve the highest net operating profit possible.
Organizational behavior (OB) is the study of the way people interact within groups. Normally this study is applied in an attempt to create more efficient business organizations. The central idea of the study of organizational behavior is that a scientific approach can be applied to the management of workers.
Organizational behavior (OB) A field of study that investigates the impact of individuals, groups in the organizational setting for the purpose of applying such knowledge toward improving an organization’s effectiveness and achieving organizational goal.
Service Marketing Environment All organizations operate within the marketing environment. The marketing environment is made up of two parts – • Macro environment • Micro environment
Meaning of Financial Management
• Managerial activities which deals with planning and controlling of firms and financial sources. • Financial management is an area of financial decision making, harmonising individual motives and enterprise goals.
Definition of Values
• They are the ideas and beliefs about life that guide us to do what we do and be what we are… • They can be about: – Politics Family – Sex Friends – Religion Dishonesty – Being of service Taking Risks – Education Respect – Money Leisure
Management The process of getting things done, effectively and efficiently, through and with other people Efficiency Means doing the thing correctly; refers to the relationship between inputs and outputs; seeks to minimize resource costs Effectiveness Means doing the right things; goal attainment
Management The process of getting things done, effectively and efficiently, through and with other people.
Efficiency Means doing the thing correctly; refers to the relationship between inputs and outputs; seeks to minimize resource costs.
Effectiveness Means doing the right things; goal attainment.
Cost accounting is concerned with recording, classifying and summarizing costs for determination of costs of products or services, planning, controlling and reducing such costs and furnishing of information to management for decision making.
Business Ethics And Corporate Social Responsibility cpjcollege
Definition of Values • They are the ideas and beliefs about life that guide us to do what we do and be what we are… • They can be about: – Politics Family – Sex Friends – Religion Dishonesty – Being of service Taking Risks – Education Respect – Money Leisure
Business Ethics And Corporate Social Responsibility cpjcollege
Different kinds of Values • Moral Values: – Values you hold for yourself but don’t force on others such as right vs. wrong, honesty vs. dishonesty, being of service to others • Aesthetic Values: – Personal standards of beauty as seen in nature, art, music, personal appearance • Performance Values: – Benchmarks you set for yourself such as accuracy, speed, reward for achievement, self-discipline and overall accomplishment
COST ACCOUNTING – MEANING
Cost accounting is concerned with recording, classifying and summarizing costs for determination of costs of products or services, planning, controlling and reducing such costs and furnishing of information to management for decision making.
To understand the concept of Taxation, heads of income, including foreign income assessment procedures, adjudication and settlement of tax disputes are the focus points of study
in this paper.
Socio-Legal Dimensions of Gender (LLB-507 & 509 )cpjcollege
This paper intends to sensitize the students about the changing
dimensions of gender and also familiarizes them with the subtle manifestations of inequality rooted in our society.
The objective of the paper is to apprise the students with the laws relating to marriage, dissolution, matrimonial remedies, adoption, contemporary trends in family institutions in India, in particular the Hindus and Muslims.
Alternative Dispute Resolution (ADR) [LLB -309] cpjcollege
Alternative Dispute Resolution has become the primary means by which cases are resolved now days, especially commercial, business disputes. It has emerged as the preferred method for resolving civil cases, with litigation as a last resort. Alternative Dispute Resolution provides an overview of the statutory, procedural, and case law underlining these processes and their interplay with litigation. A significant theme is the evolving role of
professional ethics for attorneys operating in non-adversarial settings. Clients and courts increasingly express a preference for attorneys who are skilled not only in litigation but in problem-solving, which costs the clients less in terms of time, money and relationship. The law of ADR also provides an introduction to negotiation and mediation theory.
Environmental Studies and Environmental Laws (: LLB -301)cpjcollege
The objective of this paper is to acquaint the students with the environmental issues and the measures taken for its protection along with the norms prevailing at international and national
level
The paper will focus on the civil procedures followed in instituting a suit. The students will be familiarised with certain important concepts and practical skill development activity will provide insights into the actual working of the court procedures.
The objective of this paper is to provide an understanding of basic concepts of Indian Constitution and various organs created by the Constitution and their functions.
It is an indispensable complementary part of our legal system without the study of which no advocate is suitably equipped with the basic requisites required to go to the court.
This paper focuses on understanding the forms that governments acquire along with nature and conflicts encountered by different forms of governments. Students would get trained to look into center-state conflicts and legislature-executive –judiciary conflicts.
The design is to look into how emerging issues in international relations become important in the legal context and prepare the students to understand International Law.
This paper focuses on various aspects of health care law including the constitutional perspective, obligations, and negligence of medical professionals and remedies available to
consumers of health care.
The object of this paper is to focus on land reforms in India, Constitutional provisions related to land reforms, Land Acquisition, Rehabilitation, and Resettlement Act,2013, Urban Real Estate Development Laws and the Provisions of the Rent Laws under the
Delhi Rent Control Act, 1958.
The objective of the seminar paper is to introduce the students to a holistic understanding of crime. PSDA in this seminar paper will include seminar presentation, debates and group discussions, critical review of existing laws in India and a comparison with
other countries. The paper seeks to explore the possible practical applications of the various theories that have been formulated so far. It will also require the students to look up the international cases where these theories have been applied. The students who opt for this paper will also visit the prisons/ juvenile homes/ juvenile courts / rehabilitation centre etc. and make an assessment of the current situation.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Embracing GenAI - A Strategic ImperativePeter Windle
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This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
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Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
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The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
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Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
1. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: First Semester
Name of the Subject:
Business Economics
2. Business Economics
• According to Mc Nair and Meriam, Business
economic consists of the use of economic modes of
thought to analyse business situations.
• Siegel man has defined business economic (or
business economic) as the integration of economic
theory with business practice for the purpose of
facilitating decision-making and forward planning by
management.
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
3. Scope of Business Economics
As regards the scope of business economics, no uniformity of
views exists among various authors. However, the following
aspects are said to generally fall under business economics.
• 1. Demand Analysis and Forecasting
• 2. Cost and production Analysis.
• 3. Pricing Decisions, policies and practices.
• 4. Profit Management.
• 5. Capital Management.
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
4. Application of business economics
• Specific Decisions : There are several specific decisions that business economist
might have to take. Specific decisions relate to :
– Demand forecasting
– Market research
– Economic analysis of the industry
– Investment appraisal
– Security management analysis
– Advice on foreign exchange management, etc .
• General Decisions : Business is influenced not only by what decisions are taken
within the firm but also by the general business environment. General decisions
are based on two factors :
– External Factors : This includes all those factors which are outside the control of business. The firm
can only make timely adjustment to these external factors.
– Internal Factors : This includes all those factors which are within the control.
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
5. Various economics concepts
• Opportunity Costs
• Time Value Of Money
• Marginalism and Incrementalism
• Risk, Return And Profit
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
6. Consumer Behaviour
• The theory of consumer s behaviour seeks to explain the
determination of consumer s equilibrium. Consumer s
equilibrium refers to a situation when a consumer gets
maximum satisfaction out of his given resources. A consumer
spends his money income on different goods and services in
such a manner as to derive maximum satisfaction. Once a
consumer attains equilibrium position, he would not like to
deviate from it. Economic theory has approached the problem
of determination of consumer s equilibrium in two different
ways: (1) Cardinal Utility Analysis and (2) Ordinal Utility
Analysis
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
7. Utility Analysis or Cardinal
Approach
• The Cardinal Approach to the theory of consumer behaviour is
based upon the concept of utility. It assumes that utility is
capable of measurement. It can be added, subtracted,
multiplied, and so on. According to this approach, utility can
be measured in cardinal numbers, like 1,2,3,4 etc. Fisher has
used the term Util as a measure of utility. Thus in terms of
cardinal approach it can be said that one gets from a cup of
tea 5 utils, from a cup of coffee 10 utils, and from a rasgulla 15
utils worth of utility.
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
8. Meaning of Utility
The term utility in Economics is used to denote that quality in a good or
service by virtue of which our wants are satisfied. In, other words utility is
defined as the want satisfying power of a commodity. According to, Mrs.
Robinson, Utility is the quality in commodities that makes individuals want to
buy them.
Utility has the following main features
• Utility is Subjective
• Utility is Relative
• Utility and usefulness
• Utility and Morality
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
9. Utility (cont…)
There are three concepts of utility
• Initial Utility
• Total Utility
• Marginal Utility
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
10. Relationship between total utility
and Marginal Utility
The relationship between total utility and marginal utility can be
explained as:
• Total utility, initially, increases with the consumption of
successive units of a commodity. Ultimately, it begins to fall.
• Marginal Utility continuously diminishes.
• As long as marginal utility is more than zero or positive, total
utility increases, total utility is maximum when marginal utility
is zero. It falls when marginal utility is negative.
• When marginal utility is zero or total utility is maximum, a
point of saturation is obtained.
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
11. Indifference Curve Approach
• According to ferguson, An indifference curve is a
combination of goods, each of which yield the same
level of total utility to which the consumer is
indifferent.
• According to leftwitch, A single indifference curve
shows the different combinations of X and y that
yield equal satisfaction to the consumer.
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
12. Budget line
• A budget line shows the combination of goods that
can be afforded with your current income
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
13. Law of Demand And Elasticity Of
Demand
• MEANING OF DEMAND - The term demand refers to
a desire for a commodity backed by ability and
willingness to pay for it
• LAW OF DEMAND - introduces an inverse
relationship between price and demand for a good
or service. It simply states that as price of a
commodity increases, demand decreases, provided
other factors remain constant. Also, as prices
decrease, demand increases
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
14. Factors behind the Law of Demand
The factors that make the law of demand operate are
following.
• Substitution Effect
• Income Effect
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
15. Exceptions to the Law of Demand
The law of demand does not apply to the following
cases
• Expectations regarding further prices
• Status Goods
• Giffen Goods
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
16. Demand Elasticity
• The demand elasticity (elasticity of demand) refers to
how sensitive the demand for a good is to changes in
other economic variables, such as prices and
consumer income
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
17. Degrees of Elasticity of Demand
• Infinite or Perfect Elasticity of Demand
• Perfectly Inelastic Demand
• Very Elastic Demand
• Less Elastic Demand
• Unitary Elastic Demand
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
18. Factors Affecting Elasticity of
Demand
• Nature of commodity
• Availability of substitutes
• Income Level
• Level of price
• Postponement of Consumption
• Number of Uses
• Share in Total Expenditure
• Time Period
• Habits
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
19. Types of Elasticity of Demand
According to the source of the change, the following types of elasticity of demand can
be mentioned:
• Price Elasticity of Demand
• Cross Elasticity of Demand (the elasticity in relation to the change of the price of
other goods and services)
• Income Elasticity of Demand
• Advertisement Elasticity of Demand (the elasticity in relation to the
advertisement expenditure)
According to the degree of the change in the demand, the elasticity can be
classified in:
• Perfectly Elastic
• Relatively Elastic
• Unit Elasticity
• Relatively Inelastic
• Perfect Inelasticity
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
20. Demand forecasting
• Demand forecasting is predicting future demand for
the product. In other words, it refers to the
prediction of a future demand for a product or a
service on the basis of the past events and prevailing
trends in the present
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
21. Objectives of Demand Forecasting
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
22. Theory of Production
• Production refers to the transformation of inputs or
resources into outputs of goods and services
Factors of Production
• Inputs are the resources used in the production of
goods and services. As a convenient way to analysis,
inputs are classified into labour, capital, land and
entrepreneur. Each of these broad categories,
however, includes a great variety of basic input.
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
23. Production Function
Mathematically, a basic relationship between inputs
and outputs may be expressed as:
• Q = f( L, C, N )
• Where Q = Quantity of output
• L = Labour
• C = Capital
• N = Land.
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
24. Law of Variable Proportion
• “As the proportion of the
factor in a combination of
factors is increased after a
point, first the marginal
and then the average
product of that factor will
diminish.”
Benham
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
25. Law of Returns to Scale
• In the long run all factors
of production are
variable. No factor is
fixed. Accordingly, the
scale of production can
be changed by changing
the quantity of all factors
of production.
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
26. Cost - Meaning
Cost denotes the amount of money that a company
spends on the creation or production of goods or
services
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
27. Type of Cost
• Short Run and Long Run Costs
• EXPLICIT COST
• IMPLICIT COST
• PRIVATE AND SOCIAL COST
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
28. PERFECT COMETITION
perfect competition also referred to as a pure competition, exists
when there is no direct competition between the rivals and all
sell identically the same products at a single price. The features
of Perfect Competition:
• Large number of buyers and sellers
• Homogeneous Product
• Free Entry and Exit
• Perfect knowledge of prices and technology
• No transportation cost
• Absence of Government and Artificial Restrictions
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
29. Pricing under various Markets
• Perfect Competition
• Monopoly Competition
• Monopolistic Competition
• Oligopoly Competition
Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)