This document defines key concepts in microeconomics related to demand and supply, including elasticities. It explains the laws of demand and supply, and how non-price factors can cause shifts in demand and supply curves. It also defines different types of elasticities including price elasticity of demand, cross elasticity of demand, income elasticity of demand, and price elasticity of supply. Examples are provided to illustrate these concepts.
1) Demand refers to how much of a good or service consumers are willing and able to purchase at different prices. It is determined by factors such as price, income, tastes, prices of related goods.
2) The law of demand states that, all else equal, as price increases consumers will purchase less of a good, and as price decreases they will purchase more. This relationship is depicted by the downward sloping demand curve.
3) Supply refers to how much producers are willing to provide or sell of a good at different prices. The law of supply states that, all else equal, as price increases producers will supply more of a good and as price decreases they will supply less, depicted by an upward
This document discusses the theory of demand and supply. It defines demand and explains factors that influence demand such as price, tastes, income, prices of related goods, and expectations. The relationship between price and quantity demanded can be shown through demand schedules, curves, and functions. It also discusses the concepts of market demand, determinants of demand, elasticity of demand including price elasticity and its measurement. The document then defines supply and the law of supply, and explains supply schedules, curves and functions which show the relationship between price and quantity supplied.
Elasticity of demand refers to the responsiveness of quantity demanded to changes in factors that influence demand, such as price. There are different types of elasticity - price elasticity measures response to price changes, income elasticity to changes in consumer income, and cross elasticity to the price of a related good. Perfectly elastic demand means quantity demanded is infinite no matter the price, while perfectly inelastic means quantity does not change with price. Factors like availability of substitutes, necessity of the good, and consumer income levels influence a good's elasticity. Producers, governments, and others use elasticity information in decision making around pricing, taxation, and other policies.
This document defines demand and differentiates it from quantity demanded. It explains that demand refers to the entire relationship between price and quantity, while quantity demanded refers to the quantity at a particular price point. A demand schedule is presented, showing quantity demanded at different price levels. The demand curve is plotted on a graph with price on the y-axis and quantity on the x-axis. The law of demand states that as price increases, quantity demanded decreases, resulting in an inverse relationship. Factors that can cause a shift in the demand curve, like income, price of substitutes, and expectations about future prices are also discussed.
This document discusses demand analysis and the law of demand. It begins by defining demand and explaining that demand can shift due to various factors that increase or decrease demand for specific products. It then explains the law of demand, which states that quantity demanded varies inversely with price when all other factors are held constant. The document provides a demand schedule and demand curve for Nestle Maggi to illustrate these concepts. It discusses movements along the demand curve due to price changes versus shifts of the demand curve due to non-price factors. Finally, it covers exceptions to the law of demand and factors that can cause the demand curve to slope upward.
Demand and Supply Analysis (Economics) Lecture NotesFellowBuddy.com
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This document defines economics and media economics. Economics is the study of how societies allocate scarce resources between unlimited wants. Media economics examines how the media industry uses scarce resources to produce and distribute content. It helps understand the economic relationships between media producers, audiences, advertisers, and society. The document also discusses key economic concepts like demand, supply, elasticity, and their relevance to business and policy decisions.
This document defines key concepts in microeconomics related to demand and supply, including elasticities. It explains the laws of demand and supply, and how non-price factors can cause shifts in demand and supply curves. It also defines different types of elasticities including price elasticity of demand, cross elasticity of demand, income elasticity of demand, and price elasticity of supply. Examples are provided to illustrate these concepts.
1) Demand refers to how much of a good or service consumers are willing and able to purchase at different prices. It is determined by factors such as price, income, tastes, prices of related goods.
2) The law of demand states that, all else equal, as price increases consumers will purchase less of a good, and as price decreases they will purchase more. This relationship is depicted by the downward sloping demand curve.
3) Supply refers to how much producers are willing to provide or sell of a good at different prices. The law of supply states that, all else equal, as price increases producers will supply more of a good and as price decreases they will supply less, depicted by an upward
This document discusses the theory of demand and supply. It defines demand and explains factors that influence demand such as price, tastes, income, prices of related goods, and expectations. The relationship between price and quantity demanded can be shown through demand schedules, curves, and functions. It also discusses the concepts of market demand, determinants of demand, elasticity of demand including price elasticity and its measurement. The document then defines supply and the law of supply, and explains supply schedules, curves and functions which show the relationship between price and quantity supplied.
Elasticity of demand refers to the responsiveness of quantity demanded to changes in factors that influence demand, such as price. There are different types of elasticity - price elasticity measures response to price changes, income elasticity to changes in consumer income, and cross elasticity to the price of a related good. Perfectly elastic demand means quantity demanded is infinite no matter the price, while perfectly inelastic means quantity does not change with price. Factors like availability of substitutes, necessity of the good, and consumer income levels influence a good's elasticity. Producers, governments, and others use elasticity information in decision making around pricing, taxation, and other policies.
This document defines demand and differentiates it from quantity demanded. It explains that demand refers to the entire relationship between price and quantity, while quantity demanded refers to the quantity at a particular price point. A demand schedule is presented, showing quantity demanded at different price levels. The demand curve is plotted on a graph with price on the y-axis and quantity on the x-axis. The law of demand states that as price increases, quantity demanded decreases, resulting in an inverse relationship. Factors that can cause a shift in the demand curve, like income, price of substitutes, and expectations about future prices are also discussed.
This document discusses demand analysis and the law of demand. It begins by defining demand and explaining that demand can shift due to various factors that increase or decrease demand for specific products. It then explains the law of demand, which states that quantity demanded varies inversely with price when all other factors are held constant. The document provides a demand schedule and demand curve for Nestle Maggi to illustrate these concepts. It discusses movements along the demand curve due to price changes versus shifts of the demand curve due to non-price factors. Finally, it covers exceptions to the law of demand and factors that can cause the demand curve to slope upward.
Demand and Supply Analysis (Economics) Lecture NotesFellowBuddy.com
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We connect Students who have an understanding of course material with Students who need help.
Benefits:-
# Students can catch up on notes they missed because of an absence.
# Underachievers can find peer developed notes that break down lecture and study material in a way that they can understand
# Students can earn better grades, save time and study effectively
Our Vision & Mission – Simplifying Students Life
Our Belief – “The great breakthrough in your life comes when you realize it, that you can learn anything you need to learn; to accomplish any goal that you have set for yourself. This means there are no limits on what you can be, have or do.”
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This document defines economics and media economics. Economics is the study of how societies allocate scarce resources between unlimited wants. Media economics examines how the media industry uses scarce resources to produce and distribute content. It helps understand the economic relationships between media producers, audiences, advertisers, and society. The document also discusses key economic concepts like demand, supply, elasticity, and their relevance to business and policy decisions.
The document summarizes the economic concepts of supply and demand. It defines supply and demand as the forces that determine price and quantity in a market. The relationship between each is shown via supply and demand curves - demand curves slope downward while supply curves slope upward. Equilibrium occurs where supply and demand are equal, establishing a market clearing price and quantity. Changes in determinants like income, input costs, or expectations can cause the curves to shift and disrupt equilibrium.
The document discusses why demand curves slope downward. It provides four reasons: 1) the income effect, as lower prices increase purchasing power and demand, 2) the substitution effect, as consumers substitute cheaper goods, 3) new consumers can now afford the good at lower prices, and 4) alternative uses of goods increase as prices fall. Equilibrium in markets occurs where the supply and demand curves intersect, establishing an equilibrium price and quantity.
This document discusses the economic concept of demand. It defines demand as the quantity of a good or service that consumers are willing and able to purchase at various price levels. Demand is determined by factors like price, income, tastes, population, and prices of substitutes. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Demand can change due to shifts in the demand curve from changes in these determinants, other than price.
This document discusses key concepts related to demand and elasticity. It defines demand, types of demand, individual and market demand, and determinants of demand. It also covers the demand curve and function, law of demand, demand schedule and exceptions. For elasticity, it defines price, income, and cross elasticity. It discusses types of price elasticity including perfectly elastic/inelastic and unit elastic demand. Finally, it covers methods for measuring price elasticity including total outlay, proportional, and point methods.
This document discusses the theory of demand. It defines demand and outlines the law of demand, which states that as price increases, quantity demanded decreases, assuming other factors remain constant. It discusses individual and market demand schedules and curves. It also outlines several factors that influence demand, such as price, income, tastes, and the prices of substitutes and complements. Additionally, it discusses the concepts of change in quantity demanded versus change in demand, and explains the downward sloping nature of the demand curve. Finally, it covers price elasticity of demand, the factors that influence it, and its importance for pricing and revenue decisions.
The document discusses the concepts of supply and demand. It defines demand as willingness to buy and supply as willingness to sell. It explains that demand curves have a negative slope, as price and quantity demanded move in opposite directions - as price falls, quantity demanded rises. Supply curves have a positive slope, as price and quantity supplied move in the same direction - as price rises, quantity supplied also rises. The document outlines several factors that can shift the demand and supply curves by impacting willingness to buy or sell, such as income, prices of related goods, technology, and consumer preferences.
This document provides an overview of demand, the law of demand, demand curves, and determinants of demand. It discusses:
1. The meaning and definition of demand, including that demand is backed by both willingness and ability to purchase.
2. Demand schedules and how they show the relationship between quantity demanded and price for individual consumers and markets.
3. The law of demand, which states that, other things being equal, as price increases quantity demanded decreases, and vice versa. This relationship is shown through demand curves.
4. Determinants that shift demand curves, such as income, tastes, prices of substitutes and complements, and expectations about future prices.
3.
This document defines key economic concepts related to demand, including:
1. Demand is defined as consumer desire and ability to purchase goods and services, and is the driving force behind economic growth.
2. The law of demand states that as price increases, quantity demanded decreases, and vice versa.
3. Supply is defined as the willingness and ability of producers to provide goods and services to the market. The law of supply states that as price increases, quantity supplied increases as well.
4. Elasticity measures the responsiveness of one variable to changes in another, and is calculated for price, income, and cross elasticity. Demand can be elastic or inelastic depending on the degree of responsiveness to price
The document defines demand in economics as a desire to possess a good supported by willingness and ability to pay for it. Demand refers to the quantity of a product consumers are willing and able to purchase at different prices over time in a given market. The key characteristics of demand are willingness and ability to pay, reference to a specific price, and measurement over a period of time. Demand curves slope downward to show that as price increases, quantity demanded decreases, and vice versa. A demand schedule is a table that shows the relationship between price and quantity demanded. Individual demands combine to form market demand.
1. The document discusses the concept of price elasticity of demand and defines it as the percentage change in quantity demanded divided by the percentage change in price.
2. It provides examples of perfectly inelastic demand where a change in price does not change quantity demanded and elastic demand where a small change in price leads to a large change in quantity demanded.
3. The document also discusses break-even analysis, make or buy decisions, margin of safety, factors affecting demand like price, income, tastes, and expectations and exceptions to the law of demand.
This document provides an overview of demand and supply analysis concepts including:
- Definitions of key terms like market, demand, individual vs market demand, determinants of demand, demand curves, law of demand, supply, determinants of supply, law of supply, and market equilibrium.
- Descriptions of different types of demand like organization vs industry demand, autonomous vs derived demand, short-term vs long-term demand.
- Explanations of concepts like demand schedules, demand functions, exceptions to the law of demand, law of diminishing marginal utility, and demand curves.
- Discussions of elasticity including definitions of price elasticity, income elasticity, cross elasticity, and promotional
This document discusses the concept of demand, types of demand, factors affecting demand, and elasticity of demand. It defines demand as the desire, ability, and willingness to purchase a product. The two main types of demand are individual demand and market demand. Market demand is the total of individual demands. Factors that influence demand include price, income, tastes, availability of substitutes, and expectations of future prices. Elasticity of demand refers to the responsiveness of quantity demanded to price changes. There are different types of elasticities such as perfectly inelastic, relatively elastic, and unitary elastic demand.
The document discusses the economic concepts of demand, supply, elasticity and their key determinants and relationships. It provides definitions of demand and supply according to various economists. It explains that demand is determined by price, income, tastes etc. and is inversely related to price. Supply is determined by price of goods, factors of production, technology and is directly related to price. It also discusses elasticity of demand and supply and their measurement.
This document discusses demand, supply, and the laws of demand and supply. It begins by defining demand and the factors that influence demand, including income, population, and expectations. It then defines individual and market demand. Similarly, it defines supply and discusses factors that influence supply. It introduces the laws of demand and supply - the inverse relationship between price and quantity demanded, and the direct relationship between price and quantity supplied. The document also discusses supply and demand schedules and curves, and how equilibrium price is determined by the intersection of the supply and demand curves.
This document defines and explains the economic concept of utility. It begins by defining utility as the ability of a commodity to satisfy human needs. It then discusses how different commodities provide different levels of utility to different people in different situations. It also explains that marginal utility decreases with increasing consumption of a good while total utility increases at a decreasing rate. The document provides examples and formulas to illustrate these concepts. It concludes by discussing the determinants and assumptions of demand and how the law of demand states that demand curves will slope downward, showing an inverse relationship between price and quantity demanded.
This document discusses concepts related to demand, including:
1. Demand is determined by desire and ability to pay. The law of demand states that as price rises, quantity demanded falls, and vice versa. Demand is graphed with quantity on the horizontal axis and price on the vertical axis.
2. Factors that can shift the demand curve include tastes, income, prices of substitutes and complements, expectations, and population. A shift to the right indicates increased demand while a shift to the left indicates decreased demand.
3. Elasticity measures the responsiveness of quantity demanded to price changes. Demand is elastic if a small price change leads to a large quantity change, inelastic if
The document summarizes the economic concepts of supply and demand. It defines supply and demand as the forces that determine price and quantity in a market. The relationship between each is shown via supply and demand curves - demand curves slope downward while supply curves slope upward. Equilibrium occurs where supply and demand are equal, establishing a market clearing price and quantity. Changes in determinants like income, input costs, or expectations can cause the curves to shift and disrupt equilibrium.
The document discusses why demand curves slope downward. It provides four reasons: 1) the income effect, as lower prices increase purchasing power and demand, 2) the substitution effect, as consumers substitute cheaper goods, 3) new consumers can now afford the good at lower prices, and 4) alternative uses of goods increase as prices fall. Equilibrium in markets occurs where the supply and demand curves intersect, establishing an equilibrium price and quantity.
This document discusses the economic concept of demand. It defines demand as the quantity of a good or service that consumers are willing and able to purchase at various price levels. Demand is determined by factors like price, income, tastes, population, and prices of substitutes. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Demand can change due to shifts in the demand curve from changes in these determinants, other than price.
This document discusses key concepts related to demand and elasticity. It defines demand, types of demand, individual and market demand, and determinants of demand. It also covers the demand curve and function, law of demand, demand schedule and exceptions. For elasticity, it defines price, income, and cross elasticity. It discusses types of price elasticity including perfectly elastic/inelastic and unit elastic demand. Finally, it covers methods for measuring price elasticity including total outlay, proportional, and point methods.
This document discusses the theory of demand. It defines demand and outlines the law of demand, which states that as price increases, quantity demanded decreases, assuming other factors remain constant. It discusses individual and market demand schedules and curves. It also outlines several factors that influence demand, such as price, income, tastes, and the prices of substitutes and complements. Additionally, it discusses the concepts of change in quantity demanded versus change in demand, and explains the downward sloping nature of the demand curve. Finally, it covers price elasticity of demand, the factors that influence it, and its importance for pricing and revenue decisions.
The document discusses the concepts of supply and demand. It defines demand as willingness to buy and supply as willingness to sell. It explains that demand curves have a negative slope, as price and quantity demanded move in opposite directions - as price falls, quantity demanded rises. Supply curves have a positive slope, as price and quantity supplied move in the same direction - as price rises, quantity supplied also rises. The document outlines several factors that can shift the demand and supply curves by impacting willingness to buy or sell, such as income, prices of related goods, technology, and consumer preferences.
This document provides an overview of demand, the law of demand, demand curves, and determinants of demand. It discusses:
1. The meaning and definition of demand, including that demand is backed by both willingness and ability to purchase.
2. Demand schedules and how they show the relationship between quantity demanded and price for individual consumers and markets.
3. The law of demand, which states that, other things being equal, as price increases quantity demanded decreases, and vice versa. This relationship is shown through demand curves.
4. Determinants that shift demand curves, such as income, tastes, prices of substitutes and complements, and expectations about future prices.
3.
This document defines key economic concepts related to demand, including:
1. Demand is defined as consumer desire and ability to purchase goods and services, and is the driving force behind economic growth.
2. The law of demand states that as price increases, quantity demanded decreases, and vice versa.
3. Supply is defined as the willingness and ability of producers to provide goods and services to the market. The law of supply states that as price increases, quantity supplied increases as well.
4. Elasticity measures the responsiveness of one variable to changes in another, and is calculated for price, income, and cross elasticity. Demand can be elastic or inelastic depending on the degree of responsiveness to price
The document defines demand in economics as a desire to possess a good supported by willingness and ability to pay for it. Demand refers to the quantity of a product consumers are willing and able to purchase at different prices over time in a given market. The key characteristics of demand are willingness and ability to pay, reference to a specific price, and measurement over a period of time. Demand curves slope downward to show that as price increases, quantity demanded decreases, and vice versa. A demand schedule is a table that shows the relationship between price and quantity demanded. Individual demands combine to form market demand.
1. The document discusses the concept of price elasticity of demand and defines it as the percentage change in quantity demanded divided by the percentage change in price.
2. It provides examples of perfectly inelastic demand where a change in price does not change quantity demanded and elastic demand where a small change in price leads to a large change in quantity demanded.
3. The document also discusses break-even analysis, make or buy decisions, margin of safety, factors affecting demand like price, income, tastes, and expectations and exceptions to the law of demand.
This document provides an overview of demand and supply analysis concepts including:
- Definitions of key terms like market, demand, individual vs market demand, determinants of demand, demand curves, law of demand, supply, determinants of supply, law of supply, and market equilibrium.
- Descriptions of different types of demand like organization vs industry demand, autonomous vs derived demand, short-term vs long-term demand.
- Explanations of concepts like demand schedules, demand functions, exceptions to the law of demand, law of diminishing marginal utility, and demand curves.
- Discussions of elasticity including definitions of price elasticity, income elasticity, cross elasticity, and promotional
This document discusses the concept of demand, types of demand, factors affecting demand, and elasticity of demand. It defines demand as the desire, ability, and willingness to purchase a product. The two main types of demand are individual demand and market demand. Market demand is the total of individual demands. Factors that influence demand include price, income, tastes, availability of substitutes, and expectations of future prices. Elasticity of demand refers to the responsiveness of quantity demanded to price changes. There are different types of elasticities such as perfectly inelastic, relatively elastic, and unitary elastic demand.
The document discusses the economic concepts of demand, supply, elasticity and their key determinants and relationships. It provides definitions of demand and supply according to various economists. It explains that demand is determined by price, income, tastes etc. and is inversely related to price. Supply is determined by price of goods, factors of production, technology and is directly related to price. It also discusses elasticity of demand and supply and their measurement.
This document discusses demand, supply, and the laws of demand and supply. It begins by defining demand and the factors that influence demand, including income, population, and expectations. It then defines individual and market demand. Similarly, it defines supply and discusses factors that influence supply. It introduces the laws of demand and supply - the inverse relationship between price and quantity demanded, and the direct relationship between price and quantity supplied. The document also discusses supply and demand schedules and curves, and how equilibrium price is determined by the intersection of the supply and demand curves.
This document defines and explains the economic concept of utility. It begins by defining utility as the ability of a commodity to satisfy human needs. It then discusses how different commodities provide different levels of utility to different people in different situations. It also explains that marginal utility decreases with increasing consumption of a good while total utility increases at a decreasing rate. The document provides examples and formulas to illustrate these concepts. It concludes by discussing the determinants and assumptions of demand and how the law of demand states that demand curves will slope downward, showing an inverse relationship between price and quantity demanded.
This document discusses concepts related to demand, including:
1. Demand is determined by desire and ability to pay. The law of demand states that as price rises, quantity demanded falls, and vice versa. Demand is graphed with quantity on the horizontal axis and price on the vertical axis.
2. Factors that can shift the demand curve include tastes, income, prices of substitutes and complements, expectations, and population. A shift to the right indicates increased demand while a shift to the left indicates decreased demand.
3. Elasticity measures the responsiveness of quantity demanded to price changes. Demand is elastic if a small price change leads to a large quantity change, inelastic if
This chapter discusses key economic concepts like opportunity cost, production possibilities frontiers, comparative advantage and gains from trade. It introduces the circular flow model to illustrate how households and firms interact in markets. It also explains how free markets and private property rights help coordinate economic activity and maximize societal benefit through specialization and voluntary exchange.
This document is the first chapter of an economics textbook. It introduces some key concepts in economics, including scarcity, rational choice, incentives, and decision-making at the margin. It explains how economies answer the questions of what to produce, how to produce it, and who receives it. Both centrally planned and market economies are discussed. Microeconomics and macroeconomics are distinguished as areas of study. Important economic terms are previewed. Graphs and formulas commonly used in economic analysis and modeling are also introduced.
This document discusses international trade and the export process. It defines international trade as the exchange of goods and services between countries. It then outlines the key steps in the export process, including registering as an importer/exporter, understanding documentation and terms of sale, completing customs formalities, and receiving payment. It also provides information on several Indian institutions that support exports, such as the Export-Import Bank of India, Export Credit Guarantee Corporation, and India Trade Promotion Organisation.
Business_Cycles working fiscal measures .pptRichaGoel44
The document discusses the business cycle and how it affects the overall economy. It explains that the business cycle consists of periods of expansion and contraction that cause the economy and GDP to regularly grow and shrink. During expansions, the economy and GDP grow as unemployment decreases, wages rise, businesses profit and invest more. Eventually expansions peak and turn to contractions, where businesses cut back and lay off workers, unemployment rises, and GDP declines. The economy bottoms out at the trough before again entering an expansion phase, repeating the cycle. Understanding where the economy is in the business cycle can help individuals and businesses plan accordingly.
1. Concept of Business Env bvhjhkjljj.pptRichaGoel44
The document discusses the concepts of business and business environment. It defines business as economic activities related to production, distribution, and exchange of goods and services. Environment refers to external uncontrollable factors that affect an organization's functioning.
The business environment has internal and external components. The internal environment includes management, resources, and organizational structure. The external environment can be micro or macro. The micro environment includes suppliers, customers, competitors, and public. The macro environment includes economic, political, social, technological, natural, and demographic factors.
The key characteristics of the business environment are that it is compound, constantly changing, differs for each business, and has both long and short term impacts. Environmental scanning and analysis helps organizations
Role of Government in organized society; Changing Perspective- government in ...RichaGoel44
This document provides an overview and introduction to an Economics 130 public finance class. It discusses the structure and content of the course, including four units covering topics like public goods, externalities, healthcare, and taxation. It outlines expectations for students and assessments. It also introduces different perspectives on the role and size of government in public finance. The instructor emphasizes reading assignments, practicing problems, and using their office hours for help. The goal is to analyze government taxation and spending policies through the lens of economics.
Musgrave theory of comparaitive advantage in public financeRichaGoel44
1. The document discusses Hugh Dalton's principle of maximum social advantage, which states that a government should collect taxes and spend money in a way that maximizes social welfare by equalizing the marginal social benefit of spending and marginal social sacrifice of taxation.
2. It explains the concepts of marginal social benefit, which declines with additional spending, and marginal social sacrifice, which increases with additional taxation. Maximum social advantage is achieved when these margins are equal.
3. The document considers criticisms of this theory, such as the difficulty of quantifying and comparing utility and disutility, and that it ignores broader macroeconomic impacts.
Personal Branding Webinar on women leadership and empowerment and educationRichaGoel44
This document discusses how to build and maximize a personal brand. It defines personal branding as how others perceive you when you are not present. It recommends treating yourself as a product by developing qualities like being powerful, authentic, consistent, visible and valuable. A strong personal brand can help you differentiate yourself, maximize career potential, and get ahead. The document provides tips for determining your current brand, strengthening it through adjustments and showcasing accomplishments, leveraging social media, and managing your brand proactively and strategically on an ongoing basis.
This document provides an orientation on fundamental training for research. It discusses common qualities among researchers such as inquisitiveness, thirst for knowledge, analytical ability, perseverance, innovativeness, focus, communication, collaboration, passion, and integrity. It encourages self-discovery by reflecting on strengths, weaknesses, motivating projects, self-motivation, contributions to society, and desired career journey. It also addresses building a research team by connecting with others, motivating teammates, and identifying interests in breaking new ground or enhancing existing research areas.
This document provides an overview and introduction to an Economics 130 public finance course. It outlines the course structure, expectations, and first lecture topics. The course will cover four units: introduction and tools; public goods and externalities; health care and redistribution; and taxation. The first lecture discusses views of government and introduces the Tiebout model, which suggests people choose communities based on preferred amenities and taxes. While insightful, the Tiebout model makes unrealistic assumptions. The lecture also defines public finance and previews tools that will be used.
This document discusses a study on the effectiveness of digital marketing in India. The study had the following objectives: to understand the effectiveness of digital marketing; compare digital and traditional marketing; examine different forms of digital marketing; and understand why consumers prefer digital marketing. The study hypothesized that there are significant relationships between technology and digital marketing, and between social factors and digital marketing. A survey was conducted of 105 respondents using a Likert scale questionnaire. The data was found to be reliable and both hypotheses were supported, showing relationships between technology/social factors and digital marketing. The conclusion was that digital marketing is effective and influenced by technology, with most respondents active on social media and spending over 2 hours daily online.
The document provides an overview of the Sale of Goods Act of 1930 in India. Some key points:
- The Act governs transactions involving the sale of goods in India and defines a contract of sale as one where the seller transfers property rights in goods to the buyer in exchange for a price.
- For a contract of sale to be valid, there must be at least two parties (buyer and seller), a transfer or agreement to transfer ownership of goods, the subject matter must be goods as defined by the Act, and consideration in the form of a price must be present.
- A sale involves the immediate transfer of ownership, while an agreement to sell involves a future transfer subject to conditions. The risks and
The International Monetary Fund (IMF) is an organization of 188 countries that works to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty. The IMF began at the 1944 Bretton Woods Conference to prevent economic crises like the Great Depression by regulating international finance and currency exchange rates. Today, the IMF monitors global economic risks and advises member countries on economic policies while providing short-term loans to help nations with balance of payment issues.
The document provides an overview of India's foreign trade policies with respect to EXIM from 2015-2020. It discusses the composition and direction of India's foreign trade, including major export and import sectors. It also outlines India's foreign trade policy framework, objectives of the 2015-2020 policy, and changes introduced compared to previous policies. Finally, it provides a brief history of foreign exchange regulations in India moving from FERA to the newer FEMA.
The document discusses the business cycle and how it affects the overall economy. It explains that the business cycle consists of periods of expansion and contraction that cause the economy and GDP to regularly grow and shrink. During expansions, the economy and GDP grow as unemployment decreases, wages rise, businesses profit and invest more. Eventually expansions peak and turn to contractions, where the opposite occurs - unemployment rises, wages fall, businesses cut back and lay people off. The economy fluctuates between these phases in a regular cycle. Understanding where the economy is in the cycle can help individuals and businesses plan financially.
The document discusses various concepts related to national income, including:
1. National income is defined as the aggregate factor income arising from a nation's current production of goods and services. It can be measured as the sum of incomes, net outputs by sector, or sum of expenditures.
2. Key concepts include gross national product (GNP), net national product (NNP), national income at market prices, national income at factor cost, and personal income. NNP is GNP less depreciation, while national income deducts indirect taxes and adds subsidies from NNP.
3. In India, national income is estimated using sectoral approaches like the net product method for agriculture and manufacturing, and expenditure methods
Commercial banks engage in a variety of activities including processing payments, lending, and accepting deposits. Their primary functions are accepting deposits from customers and granting loans and advances to individuals and businesses. Deposits come in several forms such as current accounts, savings accounts, fixed deposits, and recurring deposits. Banks also provide secondary services like issuing letters of credit, safe deposit boxes, and money transfers. They offer short-term loans and credit through cash credits, overdrafts, and bill discounting.
This document provides information about World War 1 and its causes, consequences, and effects. It discusses the economic, political, and social impacts of the war, including inflation, the fall of four monarchies, changes in women's roles and civilian life. Key treaties ending the war are mentioned, along with consequences like the emergence of new states in Europe and the decline of European power. Several classroom activities are proposed focusing on food rationing during WW1, women's roles in the war effort through posters, and having students write letters from the trenches to discuss soldiers' experiences.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
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Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
2. Meaning of Demand
According to Bobber,“By demand we mean the various quantities of a given
commodity or service which consumers would buy in one market in a given
period of time at various prices.”
Requisites:
a. Desire for specific commodity.
b. Sufficient resources to purchase the desired commodity.
c. Willingness to spend the resources.
d. Availability of the commodity at
(i) Certain price (ii) Certain place (iii) Certain time.
3. Kinds of Demand
1. Individual demand
2. Market demand
3. Income demand
4. Cross demand
- Demand for substitutes or competitive goods (eg.,tea & coffee, bread and
rice)
- Demand for complementary goods (eg., pen & ink)
5. Joint demand (same as complementary, eg., pen & ink)
6. Composite demand (eg., coal & electricity)
7. Direct demand (eg., ice-creams)
4. FACTORS AFFECTING DEMAND
1. Prices of Goods
2.Income of Consumer
3.Prices of Related Goods
4.Population
5.Tastes,Habit
6.Expectation about future prices
7.Climatic Factors
8.Demonstration Effect
9.Distribution of national income
5. Demand Schedule
Demand Schedule: a tabular presentation showing different quantities of a commodity that would
be demanded at different prices.
Types of Demand Schedules
Individual Demand schedule Market Demand Schedule
Price A
1 50
2 40
3 30
4 20
Price A B C M.S
1 50 45 40 135
2 40 30 38 108
3 35 20 30 85
4 20 15 25 60
6. Demand Curve
The Graphical Representation of Demand Schedule is called a
Demand Curve. It is of two types:
Types of Demand Curve
Y Y
Price Less Flatter Price More Flatter
O Demand X O Demand X
Individual DC Market DC
7. Figure 2.1 Market demand for tomatoes
Demand, the assumed inverse relationship between price and quantity purchased, can be
represented by a curve that slopes down toward the right. Here, as the price falls from $11
to zero, the number of bushels of tomatoes purchased per week rises from zero to 110,000.
8. Figure 7.2 Market demand curve
The market demand curve for Coke, DA+B, is obtained by summing the quantities that
individuals A and B are willing to buy at each and every price (shown by the individual
demand curves DA and DB).
9. The Law of Demand
Prof. Samuelson:“Law of demand states that people will buy more at lower price and
buy less at higher prices, others thing remaining the same.”
Ferguson:“According to the law of demand, the quantity demanded varies inversely
with price”.
Chief Characteristics:
1. Inverse relationship.
2. Price independent and demand dependent variable.
3. Income effect & substitution effect.
Assumptions:
No change in tastes and preference of the consumers.
Consumer’s income must remain the same.
The price of the related commodities should not change.
The commodity should be a normal commodity
10. The Law of Demand
EXPLAINERS:
Why demand curve slopes downwards?
1. Income effect
2. Substitution effect
3. Diminishing Marginal Utility
4. No. of uses of a commodity
11. Law of Demand
Exceptions:
• Inferior goods
• Articles of snob appeal. (exception:Veblen goods, eg., diamonds)
• Expectation regarding future prices (shares, industrial materials)
• Emergencies
• Quality-price relationship
• Conspicuous necessities.
• Ignorance
• Change in fashion, habits, attitudes, etc..
Importance:
• Price determination.
• To Finance Minister
• To farmers
• In the field of Planning.
12. Market Research and Law of Demand
1. The more confidence a person has in price information as a predictor of quality,
the more likely he’ll be to choose a high-priced, rather than a low-priced item.
2. A person who perceived himself as experienced in purchasing a product will
generally choose a low-priced item, but an inexperienced person will select a
high-priced one.
3. A person who selects a high-priced item will (i) believe it’s more difficult to judge
product quality, and (ii) feel he has less ability to make accurate quality judgments
than one who chooses a low-priced item.
4. A person who purchases a high-priced product would perceive large quality
differentials. He would also feel that it is risky and uncertain to go in for a low-
priced product.
5. Business executives also disbelieve that the consumer is rational. (Eg.,Yale – the
under priced lock)
6. Purchasing behavior of the consumer is mostly repetitive.
13. CHANGES IN Demand Curve
Movement along demand curveVs. Shift in demand curve:
When quantity demanded changes ( rise or fall ) as a result of change in
price alone, other factors remaining the same it is known as movement.It
is of 2 kinds:
1.Contraction/fall in quantity demanded
2. Extension/Rise in quantity demanded
When quantity demanded changes ( rise or fall ) as a result of change in
other factors alone, other than price it is known as shift.It is of 2 kinds:
1.Decrease/fall in quantity demanded
2. Increase/Rise in quantity demanded
15. DEMAND FUNCTION
It explains the relationship between demand and its various factors.
Qualitative relation : Dx = f ( Px)
Quantitative relation: Dx = a – bPx where a and b are constants
A demand function is said to be linear when the slope of the demand
curve remains constant throughout .The alphabet a denotes total
demand at zero price and alphabet b denotes slope of the demnad
curve.
Let us assume a=100 and b=5. Now find out the demand function ,
schedule and curve.
16. What Happens to Demand if…?
SITUATION: You’re the owner of a hot dog making
company:
(a) people change their preference from
hamburgers to hot dogs?
17. What Happens to Demand if…?
SITUATION: You’re the owner of a hot dog making
company:
(b) U.S. negotiates a deal w/ China to trade
hot dogs for egg rolls?
18. What Happens to Demand if…?
SITUATION: You’re the owner of a hot dog making
company:
(c) the price of ground beef plummets?
19. What Happens to Demand if…?
SITUATION: You’re the owner of a hot dog making
company:
(d) the minimum wage rises?
20. What Happens to Demand if…?
SITUATION: You’re the owner of a hot dog making
company:
(e) the MWU threatens a strike if owners
fail to meet their demands?
21. What Happens to Demand if…?
SITUATION: You’re the owner of a hot dog making
company:
(f) unemployment hits an all-time high?
22. What Happens to Demand if…?
SITUATION: You’re the owner of a hot dog making
company:
(g) the price of buns increases due to a
wheat shortage?
23. Elasticity of demand
Definition:“Elasticity of demand is defined as the responsiveness of the quantity demanded of a
good to changes in one of the variables on which demand depends.”
These variables are price of the commodity, prices of the related commodities, income of the
consumer & other various factors on which demand depends.Thus, we have Price Elasticity,
Cross Elasticity, Elasticity of Substitution & Income Elasticity. It is always price elasticity of
demand which is referred to as elasticity of demand
A.Price Elasticity
Measures how much the quantity demanded of a good changes when its price changes.
Or
It may be defined as “Percentage Change in Quantity demanded over percentage change in
price”
24. Factors affecting Elasticity of Demand
1. Availability of substitutes
2. Postponement of consumption
3. Proportion of expenditure (needles: inelastic;TV: elastic)
4. Nature of the commodity (necessity vs. luxury; durability/reparability eg., shoes)
5. Different uses of the commodity (paper vs. ink)
6. Time period (elastic in the long term)
7. Change in income (necessaries: inelastic; milk and fruit for a rich man)
8. Habits
9. Joint demand
10. Distribution of income
11. Price level (very costly & very cheap goods: inelastic)
25. Price Elasticity
Price Elasticity
• Elastic Demand or more than 1 –When quantity demanded responds greatly to price
changes
• Inelastic Demand or less than 1 –When quantity demanded responds little to price
changes.
• Unitary Elastic –When quantity demanded responds equally to the price changes.
• Perfectly inelastic or 0 elastic demand
• Perfectly elastic or infinite elastic demand
Economic factors determine the size of price elasticity for individual goods. Elasticity
tends to be higher when the goods are luxuries, when substitutes are available and when
consumer have more time to adjust their behavior.
26. Calculating Price Elasticity
PED = % Change in Qty Demanded
% Change in Price
Points to Remember:
• We drop the minus sign from the numbers by treating all %
changes as positive.That means all elasticity’s are positive, even
though prices and quantities move in the opposite direction
because of the law of downward sloping demand.
• Definition of elasticity uses percentage changes in price and
demand rather than actual changes.That means that a change in
the units of measurement does not affect the elasticity. So whether
we measure price in Rupees or paisa, the price elasticity stays the
same.
27. Some business applications of Price
Elasticity
• Price discrimination
• Public utility pricing (electricity, railway)
• Joint supply (wool and mutton)
• Super markets
• Use of machines (lower cost of production for elastic)
• Factor pricing (workers producing inelastic demand products)
• International trade (devalue when exports are price-elastic)
• Shifting of tax burden (shift commodity tax when demand is
inelastic)
• Taxation policy
28. Elasticity & Revenue:
• When demand is price inelastic, marginal revenue is negative and a price
decrease reduces total revenue.
• When demand is price elastic, marginal revenue is positive and a price
decrease increases total revenue.
• In the borderline case of unit elastic demand, marginal revenue is 0 and
a price change leads to no change in the total revenue.
B. Income Elasticity of Demand: Is the degree of responsiveness of
quantity demanded of a good to a small change in the income of the
consumer.
• If the proportion of income spent on a good remains the same as income
increases, then income elasticity for the good is equal to one.
• If the proportion spent on a good increases, then the income elasticity
for the good is greater than one.
• If the proportion decreases as income rises, then income elasticity for
the good is less than one.
29. Income elasticity
Types:
• Zero
• Negative
• Positive (i) low (ii) unitary (iii) high
Empirical evidence suggests that income elasticity falls as income rises.
Income elasticity and business decisions
1. If ei is >0 but <1, sales will increase but slower than the general
economic growth;
2. If ei is >1, sales will increase more rapidly than general economic
growth
Corollary: in a growing economy while farmers suffer as their products
have low income elasticity, industrialists gain as their products have high
income elasticity.
30. Cross Elasticity: A change in the demand for one good in
response to a change in the price of another good represents
cross elasticity of demand of the former good for the latter
good.
• If two goods are perfect substitutes for each other cross
elasticity is infinite and if the two goods are totally unrelated,
cross elasticity between them is zero.
• Goods between which cross elasticity is positive can be
called Substitutes, the good between which the cross
elasticity is negative are not always complementary as this is
found when the income effect on the price change is very
strong.
31. Degrees of Elasticity of Demand
1. Perfectly Elastic
2. Perfectly Inelastic
3. Unitary Elastic
4. Relatively more elastic
5. Relatively less elastic
37. Figure 7.3 Elastic and inelastic demand
Demand curves differ in their relative elasticity. Curve D1 is more elastic than curve D2, in
the sense that consumers on curve D1 are more responsive to a given price change (P2 to
P1) than are consumers on curve D2.
38. Figure 7.4 Changes in the elasticity coefficient
The elasticity coefficient decreases as a firm moves down the demand curve. The upper half
of a linear demand curve is elastic, meaning that the elasticity coefficient is greater than
one. The lower half is inelastic, meaning that the elasticity coefficient is less than one. This
means that the middle of the linear demand curve has an elasticity coefficient equal to one.
39. Figure 7.8 Network effects and demand
As the price falls from P3 to P2, the quantity demanded in the short run rises from Q1 to Q2.
However, sales build on sales, causing the demand in the future to expand outward to, say,
D2. The lower the price in the current time period, the greater the expansion of demand in
the future. The more the demand expands over time in response to greater sales in the
current time period, the more elastic is the long-run demand.
40. Methods of measurement of Elasticity
1. Percentage or Proportionate Method
= Percentage change in demand or;
Percentage change in price
= Proportionate change in demand
Proportionate change in price
2.Total Outlay (Expenditure) Methods
TO=TQ * P ; where,
TO=total outlay;TQ=total quantity; P=price of the commodity
3. Geometric (Point) method – at any given point on the curve
= lower segment of demand curve
upper segment of demand curve
41. Figure 3.4 Maslow’s hierarchy of needs
The pyramid orders human needs by broad categories from the most prepotent needs on
the bottom to lesser and lesser prepotent needs as an individual moves up the pyramid.
According to Maslow, an individual can be expected to satisfy her needs in the order of
their prepotence, or will move from the bottom of the pyramid through the various levels
to the top, so long as the individual’s resources to satisfy her needs last.
42. satisfaction
The extent to which needs are satisfied depends,
in the economists’ view of the world, on
the nature of the need’s demand and its price.
Physiological needs may indeed be more
completely satisfied than other needs, but that
may only be because physiological needs
have relatively low prices (panel (a)). But then, as
shown in this figure (panel (b)), the
price of the means of satisfying physiological
needs might be higher than the prices of the
means of satisfying safety and love needs.
