The document discusses economics and business economics. Economics is defined as the study of how individuals and groups allocate scarce resources. Business economics applies economic theories and techniques to solve business problems and aid management decision making. It uses micro and macroeconomic approaches to understand issues like demand, costs, profits, and external factors that influence business. The key aspects of business economics are demand forecasting, cost analysis, profit analysis, and capital management. Overall, the document outlines the basic concepts, scope, importance and determinants of demand within the field of business economics.
UNIT - I: INTRODUCTION TO BUSINESS ECONOMICS: Definition - Nature and Scope -
The Role of economists in an organization; BASIC ECONOMIC PRINCIPLES: The concept
of Opportunity Cost - Discounting principle - Time perspective - Incremental Concept –
Equi-Marginalism; OBJECTIVES OF THE FIRM: Profit Maximization - Sales Maximization
and other objectives.
Fundamental concepts, principle of economicsShompa Nandi
Fundamental Concept or Principle of Economics, Opportunity cost principle, Equi-marginal principle, incremental principle, discounting principle, Risk and uncertainty, Time Perspective
Relationship of Managerial Economics with other disciplines,Difference betwee...Pooja Kadiyan
Introduction to Managerial Economics- Relationship of Managerial Economics with other disciplines,
- Difference between Micro and Macroeconomics and
- Economic concepts/Principles Used in Decision Making
Microeconomics: Introduction and basic conceptsPie GS
1.1 Meaning and definition of microeconomics
1.2 Basic microeconomic issues: scarcity, efficiency and
alternative uses of resources
1.3 Differences between microeconomics and macroeconomics
1.4 Opportunity cost, normative economics and positive
economics
1.5 Importance of microeconomics in business decision making
1.6 Economic models: meaning and use of economic models
UNIT - I: INTRODUCTION TO BUSINESS ECONOMICS: Definition - Nature and Scope -
The Role of economists in an organization; BASIC ECONOMIC PRINCIPLES: The concept
of Opportunity Cost - Discounting principle - Time perspective - Incremental Concept –
Equi-Marginalism; OBJECTIVES OF THE FIRM: Profit Maximization - Sales Maximization
and other objectives.
Fundamental concepts, principle of economicsShompa Nandi
Fundamental Concept or Principle of Economics, Opportunity cost principle, Equi-marginal principle, incremental principle, discounting principle, Risk and uncertainty, Time Perspective
Relationship of Managerial Economics with other disciplines,Difference betwee...Pooja Kadiyan
Introduction to Managerial Economics- Relationship of Managerial Economics with other disciplines,
- Difference between Micro and Macroeconomics and
- Economic concepts/Principles Used in Decision Making
Microeconomics: Introduction and basic conceptsPie GS
1.1 Meaning and definition of microeconomics
1.2 Basic microeconomic issues: scarcity, efficiency and
alternative uses of resources
1.3 Differences between microeconomics and macroeconomics
1.4 Opportunity cost, normative economics and positive
economics
1.5 Importance of microeconomics in business decision making
1.6 Economic models: meaning and use of economic models
Price elasticity is a crucial concept in economicsSAINATHYADAV11
Price elasticity is a crucial concept in economics that measures the responsiveness of quantity demanded or supplied to changes in price. Understanding price elasticity is vital for businesses, policymakers, and economists as it helps predict the impact of price changes on market behavior and revenue. Here's why price elasticity is important:
1. Determining Revenue Impact: Price elasticity helps businesses predict how changes in price will affect their total revenue. If demand is elastic (responsive to price changes), decreasing prices may lead to higher revenue. Conversely, if demand is inelastic (insensitive to price changes), increasing prices may result in higher revenue.
2. Optimizing Pricing Strategies: Businesses can use price elasticity to determine the optimal pricing strategy for their products or services. By understanding the price sensitivity of consumers, companies can set prices that maximize profitability and market share.
3. Forecasting Market Behavior: Price elasticity provides insights into consumer behavior and market dynamics. It helps forecast how changes in prices, incomes, or competitor actions will impact demand and market equilibrium.
4. Policy Decision Making: Policymakers use price elasticity to design and evaluate economic policies, such as taxation, subsidies, and regulations. Understanding the elasticity of supply and demand helps assess the effectiveness and unintended consequences of policy interventions.
There are five cases of price elasticity of demand
A. Perfectly elastic demand:
When small change in price leads to an infinitely large change is quantity demand, it is called perfectly or infinitely elastic demand. In this case E=∞. Sometimes, even there is no change in the price, the demand changes in huge quantity. In case of perfect elastic demand, the demand for a commodity changes even though there is no change in price. This elasticity is very rarely found in practice. We can see a straight line demand curve parallel to the X axis
Ep = ((Q2 − Q1)/Q1) /((P2 − P1)/P1)
𝐸𝑝 = (1000 − 100)/100 /(10 − 10)/10 = ∞
The demand curve is horizontal straight line. It shows the at Rs. 10 price any quantity is demanded and if price increases, the consumer will not purchase the commodity.
B. Perfectly Inelastic Demand
A commodity is said to have perfectly inelastic demand, when even a large change in price of the commodity causes no change in the quantity demanded. The elasticity coefficient of perfectly in elastic demand is Ep = 0.
The shape of the demand curve for perfectly inelastic is vertical as shown below.
Price Demand
10 100
20 100
Ep = ((Q2 − Q1)/Q1) /((P2 − P1)/P1)
𝐸𝑝 = (100 − 100)/100 /(20 − 10)/10 = 0
When price increases from Rs. 10 to Rs.20, the quantity demanded remains the same. In other words the response of demand to a change in Price is nil. In this case ‗E‘=0.
C. Relatively elastic demand:
Demand changes more than proportionately to a change in price. i.e. a small change in price leads to
CA NOTES ON NATURE AND SCOPE OF BUSINESS ECONOMICS
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Introduction To Statistics - Class 11 - CommerceAnjaliKaur3
This PPT explains the chapter 1 of statistics for class 11. It will be helpful for students preparing for exams and for the teachers to use it as a teaching aid.
Gold standard is a monetary system in which the standard unit of currency is a fixed quantity of gold or is kept at the value of a fixed quantity of gold.
BHO is a component of Microsoft's internet explorer web browser application. It is an add-in designed to provide or expand the functionality of the browser and allow developers to improve the web browser with new features.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
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The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
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Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
2. ECONOMICS
It is defined “as a social science which covers the
actions of individuals and groups of individuals in
the process of producing, exchanging and
consuming of goods and services to achieve
optimization of resource use”
1. Production Decisions
2. Exchange Decisions
3. Consumption Decisions
According to Lord Robins, ”Economics is the science
which studies human behavior as a relationship
between ends and scarce means which have alternative
uses”.
3. BUSINESS ECONOMICS
It deals with the decision making and forward planning in
uncertainty and integrates economic theory with business practice
for the purpose of facilitating decision-making and forward
planning by management. It is a science that deals with the
application of various economic theories, principles, concepts and
techniques to business management in order to solve business and
management problems.
According to SPENCER AND SIEGELMAN “Business Economics is
the integration of economic theory with business practice for the
purpose of facilitating decision making and forward planning by
management”.
4. APPLICATION
Use of optimum techniques to improve
organizational decisions
Understanding individual and market demand
decisions to forecast demand
Analyze cost and supply structure to understand
supply decisions
Understanding markets
Understanding external factors like
unemployment, inflation
5. Micro Economic Nature: Business Economics is micro
economic in its nature because it deals with matters of a
particular business firm only.
Use of Economic Theories: Business Economics uses all
economic theories relating to the profits, distribution of
income etc.
Normative Science: Business Economics is a normative
science. It studies the matters concerning the aims and
objectives of a business firm. It determines the methods to
be adopted for achieving such objectives. It also makes
enquiry into the good and bad in decision making. Hence it
is a normative science.
CHARACTERISTICS
6. Macro-Economic Uses: Even though Business Economics
has the nature of Micro-Economics, it also uses Macro-
Economic approaches frequently. Certain matters in
Macro-Economics like Business Cycles, National Income,
Public Finance, Foreign trade etc. are essential for Business
Economics. So, Business Economics uses the macro-
economic phenomenon for taking business decisions.
Economics is a science or an art. It is considered as
science if it is a systemized body of knowledge which
studies the relationship between cause and effect.
Art is nothing but practice of knowledge.
Where as science teaches us to know and art teaches us
to do.
It is science in which methodology and art in its
application.
7. 1. Demand Forecasting: Every business firm initiates and
continues its production process on the basis of the
anticipation of more demand for its goods in the future. It
makes research and conducts market survey with a view to
know the tastes and fashions of the consumers. It pools up the
resources and starts production for meeting the future
demand. Business Economics analyses the demand behavior
and forecasts the quantity demanded by the consumers.
SCOPE
8. 2. Cost Analysis: Business Economics deals with the analysis of
different costs incurred by the business firms. Every firm
desires to minimize its costs and increase its output by
securing several economies of scale. Business Economics deals
with the cost estimates and acquaints the entrepreneurs with
the cost analysis of their firm.
3. Profit Analysis: Every business firm aims to secure
maximum profits. But at the same time it faces uncertainty
and risk in getting profits. Business Economics deals with the
matters relating to profit analysis like profit techniques,
policies and break-even analysis.
4. Capital Management : Capital management is another
topic dealt in Business Economics. It studies matters like cost
of capital, rate of return, selection of best project etc.
9. Business Economics is a useful subject. In fact it is the most
significant of all social sciences, Its study is highly useful for
analysing and understanding the various economic problems.
Its study brings utility to all sections of the people. Business
Economics became the intellectual religion of the day.
Business Economics is described as both light giving and fruit
bearing science. It enriches our knowledge (light) and brings
results (fruits).
IMPORTANCE OF BUSINESS
ECONOMICS
10. 1. Useful to the Finance Minister : The study of Business
Economics is highly useful to the Finance Minister and the
personnel working in the finance department. It provides a
good knowledge about public revenue, public debt and public
expenditure. It helps them in forming a sound financial
policy and result oriented budget.
2. Useful to the Minister for Planning : The study of
Business Economics is also useful to the Minister for planning
and his personnel. It furnishes a good knowledge about the
various types of plans, mobilisation, plan implementation,
capital output ratio, investment strategy etc.
SIGNIFICANCE
11. 3. Useful to the Banker : Business Economics is also
useful to the bankers. It enables them to understand
the nature, purpose and implications of different
economic policies implemented by the business firms.
4. Trade Union Leaders : Knowledge of Business
Economics is also significant for the trade union
leaders. The study of Business Economics helps the
trade union leaders to understand the nature and
causes of industrial disputes, wage problem etc.
12. 5. Businessmen : Business Economics is also useful to the
businessmen. Businessmen, with the help of Business
Economics, can study the fluctuations in business, prices,
production and employment. They can adopt a proper strategy
for producing goods and services according to the changes in
demand.
6. Statesmen : Statesmen will also get benefit by studying
Business Economics. It enables them to understand the nature
and causes of economic problems. It helps them to solve the
economic problems like unemployment, inflation, scarcity of
goods etc.
13. 7. International Economic Problems
: International Economics is an important branch
of Economics. It deals with matters like terms of
trade, balance of payments, export and import
regulations etc. Its knowledge enables the
international agencies to determine the foreign
exchange value of various national currencies. Its
study is useful to all sections of the people.
15. DEMAND
The demand for a commodity refers to the amount of
it which will be bought per unit of time at a particular
price.
Demand in economics means effective demand for a
commodity. that is, one should have
i. Desire for a commodity or service
ii. Willingness to pay its price
iii. Ability to pay its price
16. DIRECT DEMAND AND DERIVED
DEMAND
Direct Demand-for consumption goods
Goods and services that satisfy consumer desires.
Derived Demand-These are sometimes called
intermediate goods.
For example, demand for steel (an intermediate good)
is derived from the demand for final goods (e.g.,
automobiles).
17. INDIVIDUAL DEMAND
Individual demand refers to the demand for a commodity from
the individual point of view. That quantity of a good a consumer
would buy at a given price during a given period of time is his
individual demand for that particular good.
MARKET DEMAND
Market demand refers to a total demand of all the buyers
taken together.
18. The general tendency of consumer’s behavior in
demanding a commodity in relation to the changes
in its price is described by the law of demand.
It states that the consumer demands more of the
good at a lower price and vice versa, other things
being constant. The quantity of a good demanded
is negatively related to price of the good.
19.
20. The law of demand can be illustrated with the help of a
demand schedule i.e., as the price of a commodity
decreased the corresponding quantity demanded for that
commodity increases and vice versa. A demand schedule
for wheat.
Price of wheat per kg.
(in Rs)
Quantity demanded
(kgs per week)
5
4
3
2
1
10
20
30
40
50
22. DETERMINANTS OF DEMAND
Own Price
Income of the
consumer
Price of other goods:
Complementary
Substitutes
Tastes and
preferences
Expectations of
future prices
23. CHANGE IN QUANTITY DEMANDED
D1
Change in quantity demanded
(a movement along the curve)
B
0
Price(perunit)
Quantity demanded (per unit of time)
100
$2
$1
200
A
25. ASSUMPTIONS OF THE LAW
No change in consumer’s income : throughout the
operation of the law, the consumer’s income should
remain the same. If the level of a buyer’s income
changes , he may buy more even at a higher price ,
invalidating the law of demand
No change in consumer’s preferences : the consumer’s
tastes , habits and preferences should remain constant
No change in fashion : if the commodity concerned
goes out of fashion, a buyer may not buy more of it
even at a substantial price reduction
26. No change in weather conditions : it is assumed that
climatic and weather conditions are unchanged in
affecting the demand for certain goods.
No change in government policy : The level of taxation
and fiscal policy of the government remain the same
throughout the operation of the law. Otherwise, the
changes in income tax, for instance may cause changes
in consumers income or commodity taxes may lead to
distortions in consumers preferences.
27. REASONS FOR DOWNWARD
SLOPING DEMAND CURVE
I. Income Effect : When price of a commodity falls, consumer's real
income rises that is he can now purchase more of the commodity with
the same income.
II. Substitution Effect : When price of a commodity falls, it become
cheaper than its substitute good so the users of substitute good would
shift their consumption to the given good and therefore the quantity
demanded of the commodity will rise.
III. Law of Diminishing Marginal Utility : It states that the satisfaction
derived from a commodity will diminish from every successive unit. So
the consumer would be willing to pay less and less for each successive
unit.
28. EXCEPTIONS
1. Giffen Goods : In case of certain inferior goods
called Giffen goods, when the price falls, quite
often less quantity will be purchased than before
because of the negative income effect and
people’s increasing preference for a superior
commodity with the rise in their real income.
Few appropriate examples may be listed, such as
cheap potatoes, cheap bread, vegetable ghee,
etc., as against superior commodities like good
potatoes, cake, and pure ghee.
29. 2. Commodities which are used as status
symbols: Some expensive commodities like
diamonds, expensive cars, etc., are used as status
symbols to display one’s wealth.
The more expensive these commodities become, the
higher their value as a status symbol and hence, the
greater the demand for them.
The amount demanded of these commodities increase
with an increase in their price and decrease with a
decrease in their price.
Also known as a Veblen good
30. 3. Expectation of change in the price of commodity : If a
household expects the price of a commodity to increase, it
may start purchasing a greater amount of the commodity
even at the presently increased price.
Similarly, if the household expects the price of the commodity to
decrease, it may postpone its purchases.
Thus, some argue that law of demand is violated in such cases. In this
case, the demand curve does not slope down from left to right;
instead it presents a backward slope from the top right to down left.
This curve is known as an exceptional demand curve.
32. SUPPLY
Supply of a commodity means quantity of a
commodity which is actually offered for sale at a
given price during the particular period of time.
It is always referred to in relation to price and time.
34. THE LAW OF SUPPLY
Supply states that all other factors remaining unchanged
the supply of a good increases as its price increases.
This can be shown by a supply schedule, a supply curve
or a supply function.
The law of supply states that there is a direct relationship
between price and quantity supplied of a commodity,
other things remaining constant.
35. The supply is upward sloping because of:
i. the law of diminishing marginal productivity
ii. Goal of profit maximization
UPWARD SLOPING SUPPLY CURVE
36. SUPPLY FUNCTION
In a supply function, the determinants of supply can be
summarized as under :
Sx=f{Px,Pf,Py,……..,Pz,O,T,t,s}
Where, Sx=the supply of commodity X
Px=the price of X
Pf=the set prices of the factor
Py,….Pz=the prices of the goods
O=factors outside the economic sphere
T=technology used
t=commodity taxation
s=subsidy
38. PRICE OF THE COMMODITY
At a higher price producer offers more quantity
at a lower price producer offers less quantity
P(x) S(x)
P(x) S(x)
39. Price of the related good(z)
When price of related good(z) increase and the price of
the commodity remain constant the supply of the
commodity(x) decreases and vice versa..
P(z) P(x)=constant S(x)
P(z) P(x) =constant S(x)
40. State of technology
Upgradation in the technology leads to reduction in cost
of production thus supply increases and vice versa
Upgradation in technology S(x)
41. GOVERNMENT POLICY
If the government policy is favorable the supply is more
and if the government policy is unfavorable the supply is
less
favourable government policy S(x)
unfavourable government policy S(x)
42. The supply schedule refers to a table showing the
quantity of a commodity supplied at various prices
during a given period. There are two types of supply
schedules. They are :-
1) The individual seller`s supply schedule and
2) The market supply schedule.
43. THE INDIVIDUAL SUPPLY
An individual supply schedule refers to the table
representing the different quantities of a commodity
offered for supply by an individual seller at alternative
price.
Price of commodity X Quantity supplied of
commodity X
10 150
15 250
18 400
20 600
25 900
44. The price-quantity relationship of a commodity in the
market is expressed in terms of the market supply. A
market supply is the aggregate supply schedule of all
the sellers or producers in the market. It refers to the
total quantities of a given commodity which the sellers
in the market are willing to offer for sale at various
prices. Thus, the market supply schedule is derived as
the sum total of the individual supply schedules of
every seller in the market.
THE MARKET SUPPLY
45. CHANGES IN QUANTITY SUPPLY
It includes expansion and contraction of supply.
A movement along the supply curve is caused by
changes in the price of the goods, other things
remaining constant.
46. Change in quantity
supplied (a movement
along the curve)
CHANGE IN QUANTITY SUPPLIED
Price(perunit)
Quantity supplied (per unit of time)
S0
Rs. 15
A
1,250 1,500
B
47. It includes increase and decrease in supply.
A shift in supply curve is caused by changes in factors other
than the price of the good.
These factors are:
Price of other commodities
State of technology
Cost of Production
Government policies