This document discusses the economic theory of demand. It begins by introducing the concept of demand and what determines demand for a product. Key determinants of demand include price, income, tastes and preferences. The relationship between price and quantity demanded is shown using demand schedules and demand curves. The law of demand states that as price increases, quantity demanded decreases, and vice versa. Demand functions express this relationship mathematically. There are some exceptions to the law of demand. Elasticity measures the responsiveness of demand to changes in price and income. Price elasticity indicates whether demand is elastic, inelastic or unit elastic. Income elasticity also measures responsiveness but to changes in consumer income.
This document discusses the economic theory of demand. It begins by introducing the concept of demand and what determines demand for a product. Key determinants of demand include price, income, tastes and preferences. The relationship between price and quantity demanded is shown using demand schedules and demand curves. The law of demand states that quantity demanded is inversely related to price. Demand functions express this relationship mathematically. Exceptions to the law of demand and the differences between changes in demand versus changes along the demand curve are also explained. The document concludes by covering elasticity of demand, including price elasticity, income elasticity and cross elasticity.
1) The document discusses the economic theory of demand, including what determines demand, the relationship between price and quantity demanded, and the factors that influence demand.
2) Key factors that determine demand include price, income, tastes and preferences, and prices of related goods. The quantity demanded at each price level is shown in a demand schedule and as a downward sloping demand curve.
3) According to the law of demand, quantity demanded increases when price decreases and decreases when price increases, assuming all other factors remain constant. Demand can shift due to changes in these other factors.
This document discusses demand, factors that affect demand, and the elasticity of demand. It defines demand as the quantity of a commodity a consumer is willing to buy at a given price and time. Demand is affected by the price of the commodity, prices of substitutes and complements, income, tastes, and expectations. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Elasticity of demand measures responsiveness of quantity demanded to price changes. It is measured using total expenditure, percentage, and point elasticity methods. Factors like availability of substitutes and nature of the good impact elasticity. Demand can be perfectly elastic, perfectly inelastic, or elastic.
This document discusses elasticity of demand, including definitions and types. It defines elasticity as measuring the responsiveness of one variable to changes in another. There are different types of elasticity depending on what is changing, such as price elasticity (responsiveness of demand to price changes), income elasticity (responsiveness of demand to income changes), and cross elasticity (responsiveness of demand for one good to price changes in another good). The document discusses concepts like perfectly inelastic, perfectly elastic, and unit elastic demand curves, and provides examples of goods that fall under each category. It also outlines factors that influence a good's price elasticity and significance of understanding elasticities.
This presentation discusses different types of elasticity, including price elasticity of demand, income elasticity of demand, elasticity of substitution, cross elasticity of demand, and advertising elasticity of demand. It defines these concepts and provides examples of how each can be measured. The key types of elasticity discussed are perfectly elastic, relatively elastic, unitary elastic, relatively inelastic, and perfectly inelastic demand. Factors that can impact each type of elasticity are also outlined.
This presentation discusses various types of elasticity, including price elasticity of demand, income elasticity of demand, cross elasticity of demand, and advertising elasticity of demand. It defines these concepts and explains how to measure each type of elasticity. The key types of elasticity discussed are perfectly inelastic, perfectly elastic, unitary elastic, and relatively elastic demands. Factors that influence each type of elasticity and the importance of understanding elasticity for business decision making are also summarized.
This document discusses demand, factors affecting demand, and the movement of demand curves. It defines demand as the quantity of a good consumers are willing and able to purchase at a given price. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Demand can shift due to changes in factors other than price, such as income, tastes, prices of substitutes or complements. A rightward shift increases demand while a leftward shift decreases it. The document provides examples of goods and how demand for them would change in various scenarios.
This document discusses the economic theory of demand. It begins by introducing the concept of demand and what determines demand for a product. Key determinants of demand include price, income, tastes and preferences. The relationship between price and quantity demanded is shown using demand schedules and demand curves. The law of demand states that as price increases, quantity demanded decreases, and vice versa. Demand functions express this relationship mathematically. There are some exceptions to the law of demand. Elasticity measures the responsiveness of demand to changes in price and income. Price elasticity indicates whether demand is elastic, inelastic or unit elastic. Income elasticity also measures responsiveness but to changes in consumer income.
This document discusses the economic theory of demand. It begins by introducing the concept of demand and what determines demand for a product. Key determinants of demand include price, income, tastes and preferences. The relationship between price and quantity demanded is shown using demand schedules and demand curves. The law of demand states that quantity demanded is inversely related to price. Demand functions express this relationship mathematically. Exceptions to the law of demand and the differences between changes in demand versus changes along the demand curve are also explained. The document concludes by covering elasticity of demand, including price elasticity, income elasticity and cross elasticity.
1) The document discusses the economic theory of demand, including what determines demand, the relationship between price and quantity demanded, and the factors that influence demand.
2) Key factors that determine demand include price, income, tastes and preferences, and prices of related goods. The quantity demanded at each price level is shown in a demand schedule and as a downward sloping demand curve.
3) According to the law of demand, quantity demanded increases when price decreases and decreases when price increases, assuming all other factors remain constant. Demand can shift due to changes in these other factors.
This document discusses demand, factors that affect demand, and the elasticity of demand. It defines demand as the quantity of a commodity a consumer is willing to buy at a given price and time. Demand is affected by the price of the commodity, prices of substitutes and complements, income, tastes, and expectations. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Elasticity of demand measures responsiveness of quantity demanded to price changes. It is measured using total expenditure, percentage, and point elasticity methods. Factors like availability of substitutes and nature of the good impact elasticity. Demand can be perfectly elastic, perfectly inelastic, or elastic.
This document discusses elasticity of demand, including definitions and types. It defines elasticity as measuring the responsiveness of one variable to changes in another. There are different types of elasticity depending on what is changing, such as price elasticity (responsiveness of demand to price changes), income elasticity (responsiveness of demand to income changes), and cross elasticity (responsiveness of demand for one good to price changes in another good). The document discusses concepts like perfectly inelastic, perfectly elastic, and unit elastic demand curves, and provides examples of goods that fall under each category. It also outlines factors that influence a good's price elasticity and significance of understanding elasticities.
This presentation discusses different types of elasticity, including price elasticity of demand, income elasticity of demand, elasticity of substitution, cross elasticity of demand, and advertising elasticity of demand. It defines these concepts and provides examples of how each can be measured. The key types of elasticity discussed are perfectly elastic, relatively elastic, unitary elastic, relatively inelastic, and perfectly inelastic demand. Factors that can impact each type of elasticity are also outlined.
This presentation discusses various types of elasticity, including price elasticity of demand, income elasticity of demand, cross elasticity of demand, and advertising elasticity of demand. It defines these concepts and explains how to measure each type of elasticity. The key types of elasticity discussed are perfectly inelastic, perfectly elastic, unitary elastic, and relatively elastic demands. Factors that influence each type of elasticity and the importance of understanding elasticity for business decision making are also summarized.
This document discusses demand, factors affecting demand, and the movement of demand curves. It defines demand as the quantity of a good consumers are willing and able to purchase at a given price. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Demand can shift due to changes in factors other than price, such as income, tastes, prices of substitutes or complements. A rightward shift increases demand while a leftward shift decreases it. The document provides examples of goods and how demand for them would change in various scenarios.
Unit - 2 Elasticity of demand (New Syllabus).pptSelf Employed
This document provides an overview of elasticity of demand. It begins by defining elasticity and the law of demand. It then discusses different types of demand and the determinants of demand. The document explains exceptions to the law of demand, including Giffen goods and Veblen goods. It defines price elasticity of demand, income elasticity of demand, cross elasticity of demand, and advertisement elasticity of demand. The document also covers methods of measuring elasticity and the significance and factors affecting elasticity of demand. Finally, it briefly discusses demand forecasting and the law of supply.
This chapter introduces the concepts of supply and demand. It discusses how markets work through the interaction of supply and demand. The chapter defines different market types and outlines the factors that determine demand and supply in competitive markets. It establishes how changes in demand or supply affect price and quantity sold in a market. The chapter also looks at how prices allocate scarce resources in society.
This document provides an overview of supply and demand concepts. It discusses key topics like:
- The four types of markets and how supply and demand determine price and quantity in competitive markets.
- The determinants of demand and how changes in factors like income, prices of related goods, and tastes can shift the demand curve.
- The law of demand and how quantity demanded responds to price changes along the demand curve.
- The determinants of supply and how supply curves can shift from changes in input prices, technology, and expectations.
- How supply and demand interact in equilibrium to establish price and quantity, and what occurs in situations of excess supply or demand.
- How equilibrium changes in response to shifts in
This document provides an overview of supply and demand concepts. It begins by outlining the key topics that will be covered in the chapter, including market types, factors that determine demand and supply, and how equilibrium price and quantity are established. The chapter then defines demand, determinants of demand like income and tastes, and the difference between changes in quantity demanded versus demand. Similarly, it defines supply, determinants of supply, and the difference between changes in quantity supplied versus supply. The chapter concludes by bringing supply and demand together and explaining how equilibrium works and how it can change based on shifts in either curve.
This document provides an overview of health care production and markets. It begins by outlining the key concepts to be covered, including demand and supply, elasticity, equilibrium, and market failure. It then defines some important economic terms like ceteris paribus. The document goes on to explain demand, including the law of demand and determinants of demand. It also covers supply, the law of supply, and factors that can shift the supply curve. Finally, it discusses market equilibrium and sources of market failure in health care markets.
3. Principles of economics- Market supply and demand.pptBlackMoon54
1) Supply and demand are the fundamental market forces that determine price and quantity in a competitive market.
2) Supply is determined by producers and increases with price, while demand is determined by consumers and decreases with price.
3) The equilibrium price is where supply and demand are equal in the market, resulting in neither a surplus or shortage.
Demand refers to how much of a product consumers are willing and able to purchase at a given price. The law of demand states that, all else equal, quantity demanded decreases as price increases. Supply refers to how much producers are willing to produce at a given price. The supply schedule shows the minimum price producers require to supply different quantities. Market equilibrium occurs where quantity demanded equals quantity supplied, establishing a single market-clearing price.
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 elasticity of demand, including what it is, types of elasticity (price, income, cross), and factors that affect it. It provides definitions and formulas for price elasticity, income elasticity, and cross elasticity. Methods for calculating elasticity are described, including ratio, point, arc, and total outlay methods. Uses of understanding elasticity for businesses and governments are outlined. A case study on health clubs explores how price and income elasticity apply in that market.
Demand refers to effective demand backed by willingness and ability to purchase. The demand curve slopes downward to show an inverse relationship between price and quantity demanded. According to the law of demand, other things remaining constant, quantity demanded increases when price decreases as consumers will purchase more due to the income and substitution effects and the good attracting new consumers. Demand analysis is used for production planning, sales forecasting, inventory control, and economic policymaking.
Best PPT on Chapter Demand from economics for Students.DhruvArora87
The document discusses the concept of demand, including:
- Demand is the quantity of a commodity a consumer is willing and able to buy at a given price over a period of time.
- Individual demand depends on price of the good, income, tastes/preferences, and related goods' prices. Market demand also depends on population size/composition, season/weather, and income distribution.
- Demand functions and schedules show the relationship between quantity demanded and influencing factors. The law of demand states an inverse relationship between price and quantity demanded when other factors remain constant. Exceptions to the law include Giffen goods and necessities.
The document provides an overview of supply and demand, including:
1. It defines demand as desire for a commodity backed by ability and willingness to pay, and defines the law of demand which states that quantity demanded varies inversely with price.
2. It also defines supply as the quantity firms choose to sell given a price, and defines the law of supply which states that quantity supplied varies directly with price.
3. It explains the determination of market equilibrium where the supply and demand curves intersect, and how various factors can cause the curves to shift, changing the equilibrium price and quantity.
Elasticity measures the responsiveness of one variable to changes in another variable. There are four main types of elasticity: price elasticity of demand, income elasticity of demand, cross elasticity of demand, and price elasticity of supply. Price elasticity of demand indicates how much quantity demanded responds to a percentage change in price. Demand can be perfectly inelastic, inelastic, unitarily elastic, elastic, or perfectly elastic depending on its price elasticity coefficient. Price elasticity of supply works similarly but for quantity supplied in response to price changes.
This document provides an overview of demand, supply, and elasticity concepts. It defines key terms like market, demand, supply, equilibrium, price ceilings and floors. It explains the laws of demand and supply graphically and how shifts occur due to changes in determinants. It also defines different types of elasticity including price elasticity of demand and supply, income elasticity, and cross price elasticity. Formulas for computing elasticity coefficients are provided.
This document provides an overview of elasticity concepts including:
1) Price elasticity of demand which measures the responsiveness of demand to price changes and includes perfectly elastic, relatively elastic, unitary, relatively inelastic, and perfectly inelastic demand.
2) Factors that affect price elasticity like the nature of the good, availability of substitutes, and proportion of income spent.
3) Practical importance of price elasticity for business decisions, tax policy, and international trade.
4) Income elasticity of demand which measures the responsiveness of demand to income changes and can be positive, negative, or zero. Measurement and factors like price are also discussed.
5) Elasticity of
This document provides an overview of elasticity concepts including:
1) Definitions of price elasticity of demand and its measurement. Price elasticity measures the responsiveness of demand to price changes.
2) The five types of price elasticity are defined with examples - perfectly elastic, relatively elastic, unitary, relatively inelastic, and perfectly inelastic.
3) Other elasticity concepts are introduced including income elasticity, cross elasticity, substitution elasticity and advertising elasticity. Measurement techniques and factors that influence each type of elasticity are also discussed.
4) The practical importance of elasticity concepts for business decisions, tax policy, and economic analysis are outlined. Elasticity helps explain market behaviors and
This document provides an overview of elasticity concepts including:
1) Definitions of price elasticity of demand and its measurement. Price elasticity measures the responsiveness of demand to price changes.
2) The five types of price elasticity are defined with examples - perfectly elastic, relatively elastic, unitary, relatively inelastic, and perfectly inelastic.
3) Other elasticity concepts are introduced including income elasticity, cross elasticity, substitution elasticity and advertising elasticity. Measurement techniques and factors that influence each type of elasticity are also discussed.
4) The practical importance of elasticity concepts for business decisions, tax policy, and economic analysis are outlined. Elasticity helps explain market behaviors and
Demand analysis is important for business success as sales depend on market demand. Failure to properly estimate demand can negatively impact business, as seen with Kellogg's and McDonalds in India in the 1990s. Demand serves several purposes including sales forecasting, product planning, and determining pricing. The law of demand generally states that as price increases, quantity demanded decreases, and vice versa. However, there are some exceptions including Giffen goods, goods with snob appeal, and situations involving speculation. A demand curve graphically shows the relationship between price and quantity demanded.
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.
This document defines key economic terms related to demand and supply. It explains that demand is the quantity of a good that consumers are willing and able to purchase at different price points, as shown in a demand schedule. The law of demand states that demand is inversely related to price when all other factors remain unchanged. Supply is defined as the quantity willing to be sold by producers. The law of supply says that suppliers will produce more of a good when the price is higher. Market equilibrium exists when the quantity demanded equals the quantity supplied at a single market price.
Grooming is important for one's career. To groom properly, understand your industry's dress code, wear well-fitting clothes, and take care of personal hygiene like clipping nails, wearing proper footwear, addressing bad breath, trimming facial hair, clipping hair, and being presentable at all times.
This document discusses key concepts in managerial economics including isoquants, isocosts, and expansion path. It defines isoquants as curves that show the different combinations of two inputs (e.g. capital and labor) that produce the same level of output. Isocosts show combinations of inputs that can be purchased at a given cost level and input price. The expansion path reflects the least cost method of producing different output levels when input prices remain constant. The document provides examples and properties of isoquants including their negative slope, convex shape, and that they do not intersect. It also discusses the marginal rate of technical substitution.
Unit - 2 Elasticity of demand (New Syllabus).pptSelf Employed
This document provides an overview of elasticity of demand. It begins by defining elasticity and the law of demand. It then discusses different types of demand and the determinants of demand. The document explains exceptions to the law of demand, including Giffen goods and Veblen goods. It defines price elasticity of demand, income elasticity of demand, cross elasticity of demand, and advertisement elasticity of demand. The document also covers methods of measuring elasticity and the significance and factors affecting elasticity of demand. Finally, it briefly discusses demand forecasting and the law of supply.
This chapter introduces the concepts of supply and demand. It discusses how markets work through the interaction of supply and demand. The chapter defines different market types and outlines the factors that determine demand and supply in competitive markets. It establishes how changes in demand or supply affect price and quantity sold in a market. The chapter also looks at how prices allocate scarce resources in society.
This document provides an overview of supply and demand concepts. It discusses key topics like:
- The four types of markets and how supply and demand determine price and quantity in competitive markets.
- The determinants of demand and how changes in factors like income, prices of related goods, and tastes can shift the demand curve.
- The law of demand and how quantity demanded responds to price changes along the demand curve.
- The determinants of supply and how supply curves can shift from changes in input prices, technology, and expectations.
- How supply and demand interact in equilibrium to establish price and quantity, and what occurs in situations of excess supply or demand.
- How equilibrium changes in response to shifts in
This document provides an overview of supply and demand concepts. It begins by outlining the key topics that will be covered in the chapter, including market types, factors that determine demand and supply, and how equilibrium price and quantity are established. The chapter then defines demand, determinants of demand like income and tastes, and the difference between changes in quantity demanded versus demand. Similarly, it defines supply, determinants of supply, and the difference between changes in quantity supplied versus supply. The chapter concludes by bringing supply and demand together and explaining how equilibrium works and how it can change based on shifts in either curve.
This document provides an overview of health care production and markets. It begins by outlining the key concepts to be covered, including demand and supply, elasticity, equilibrium, and market failure. It then defines some important economic terms like ceteris paribus. The document goes on to explain demand, including the law of demand and determinants of demand. It also covers supply, the law of supply, and factors that can shift the supply curve. Finally, it discusses market equilibrium and sources of market failure in health care markets.
3. Principles of economics- Market supply and demand.pptBlackMoon54
1) Supply and demand are the fundamental market forces that determine price and quantity in a competitive market.
2) Supply is determined by producers and increases with price, while demand is determined by consumers and decreases with price.
3) The equilibrium price is where supply and demand are equal in the market, resulting in neither a surplus or shortage.
Demand refers to how much of a product consumers are willing and able to purchase at a given price. The law of demand states that, all else equal, quantity demanded decreases as price increases. Supply refers to how much producers are willing to produce at a given price. The supply schedule shows the minimum price producers require to supply different quantities. Market equilibrium occurs where quantity demanded equals quantity supplied, establishing a single market-clearing price.
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 elasticity of demand, including what it is, types of elasticity (price, income, cross), and factors that affect it. It provides definitions and formulas for price elasticity, income elasticity, and cross elasticity. Methods for calculating elasticity are described, including ratio, point, arc, and total outlay methods. Uses of understanding elasticity for businesses and governments are outlined. A case study on health clubs explores how price and income elasticity apply in that market.
Demand refers to effective demand backed by willingness and ability to purchase. The demand curve slopes downward to show an inverse relationship between price and quantity demanded. According to the law of demand, other things remaining constant, quantity demanded increases when price decreases as consumers will purchase more due to the income and substitution effects and the good attracting new consumers. Demand analysis is used for production planning, sales forecasting, inventory control, and economic policymaking.
Best PPT on Chapter Demand from economics for Students.DhruvArora87
The document discusses the concept of demand, including:
- Demand is the quantity of a commodity a consumer is willing and able to buy at a given price over a period of time.
- Individual demand depends on price of the good, income, tastes/preferences, and related goods' prices. Market demand also depends on population size/composition, season/weather, and income distribution.
- Demand functions and schedules show the relationship between quantity demanded and influencing factors. The law of demand states an inverse relationship between price and quantity demanded when other factors remain constant. Exceptions to the law include Giffen goods and necessities.
The document provides an overview of supply and demand, including:
1. It defines demand as desire for a commodity backed by ability and willingness to pay, and defines the law of demand which states that quantity demanded varies inversely with price.
2. It also defines supply as the quantity firms choose to sell given a price, and defines the law of supply which states that quantity supplied varies directly with price.
3. It explains the determination of market equilibrium where the supply and demand curves intersect, and how various factors can cause the curves to shift, changing the equilibrium price and quantity.
Elasticity measures the responsiveness of one variable to changes in another variable. There are four main types of elasticity: price elasticity of demand, income elasticity of demand, cross elasticity of demand, and price elasticity of supply. Price elasticity of demand indicates how much quantity demanded responds to a percentage change in price. Demand can be perfectly inelastic, inelastic, unitarily elastic, elastic, or perfectly elastic depending on its price elasticity coefficient. Price elasticity of supply works similarly but for quantity supplied in response to price changes.
This document provides an overview of demand, supply, and elasticity concepts. It defines key terms like market, demand, supply, equilibrium, price ceilings and floors. It explains the laws of demand and supply graphically and how shifts occur due to changes in determinants. It also defines different types of elasticity including price elasticity of demand and supply, income elasticity, and cross price elasticity. Formulas for computing elasticity coefficients are provided.
This document provides an overview of elasticity concepts including:
1) Price elasticity of demand which measures the responsiveness of demand to price changes and includes perfectly elastic, relatively elastic, unitary, relatively inelastic, and perfectly inelastic demand.
2) Factors that affect price elasticity like the nature of the good, availability of substitutes, and proportion of income spent.
3) Practical importance of price elasticity for business decisions, tax policy, and international trade.
4) Income elasticity of demand which measures the responsiveness of demand to income changes and can be positive, negative, or zero. Measurement and factors like price are also discussed.
5) Elasticity of
This document provides an overview of elasticity concepts including:
1) Definitions of price elasticity of demand and its measurement. Price elasticity measures the responsiveness of demand to price changes.
2) The five types of price elasticity are defined with examples - perfectly elastic, relatively elastic, unitary, relatively inelastic, and perfectly inelastic.
3) Other elasticity concepts are introduced including income elasticity, cross elasticity, substitution elasticity and advertising elasticity. Measurement techniques and factors that influence each type of elasticity are also discussed.
4) The practical importance of elasticity concepts for business decisions, tax policy, and economic analysis are outlined. Elasticity helps explain market behaviors and
This document provides an overview of elasticity concepts including:
1) Definitions of price elasticity of demand and its measurement. Price elasticity measures the responsiveness of demand to price changes.
2) The five types of price elasticity are defined with examples - perfectly elastic, relatively elastic, unitary, relatively inelastic, and perfectly inelastic.
3) Other elasticity concepts are introduced including income elasticity, cross elasticity, substitution elasticity and advertising elasticity. Measurement techniques and factors that influence each type of elasticity are also discussed.
4) The practical importance of elasticity concepts for business decisions, tax policy, and economic analysis are outlined. Elasticity helps explain market behaviors and
Demand analysis is important for business success as sales depend on market demand. Failure to properly estimate demand can negatively impact business, as seen with Kellogg's and McDonalds in India in the 1990s. Demand serves several purposes including sales forecasting, product planning, and determining pricing. The law of demand generally states that as price increases, quantity demanded decreases, and vice versa. However, there are some exceptions including Giffen goods, goods with snob appeal, and situations involving speculation. A demand curve graphically shows the relationship between price and quantity demanded.
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.
This document defines key economic terms related to demand and supply. It explains that demand is the quantity of a good that consumers are willing and able to purchase at different price points, as shown in a demand schedule. The law of demand states that demand is inversely related to price when all other factors remain unchanged. Supply is defined as the quantity willing to be sold by producers. The law of supply says that suppliers will produce more of a good when the price is higher. Market equilibrium exists when the quantity demanded equals the quantity supplied at a single market price.
Grooming is important for one's career. To groom properly, understand your industry's dress code, wear well-fitting clothes, and take care of personal hygiene like clipping nails, wearing proper footwear, addressing bad breath, trimming facial hair, clipping hair, and being presentable at all times.
This document discusses key concepts in managerial economics including isoquants, isocosts, and expansion path. It defines isoquants as curves that show the different combinations of two inputs (e.g. capital and labor) that produce the same level of output. Isocosts show combinations of inputs that can be purchased at a given cost level and input price. The expansion path reflects the least cost method of producing different output levels when input prices remain constant. The document provides examples and properties of isoquants including their negative slope, convex shape, and that they do not intersect. It also discusses the marginal rate of technical substitution.
This document provides an overview of performance management. It defines performance management as involving thinking through various facets of performance, identifying critical dimensions, planning, reviewing, developing, and enhancing performance. It discusses the evolution of performance management from early appraisal systems to its current focus on development. Key aspects covered include objectives like boosting performance, objectives of an ideal system like strategic congruence and validity, and challenges like linking rewards to performance.
This document contains 24 cases related to the Sale of Goods Act 1930. Some key issues addressed include: whether a seller is liable for injuries caused by an unlabeled dangerous good; whether a true owner or good faith purchaser has rights to a good; whether a buyer can reject non-conforming goods delivered late; and the rights of unpaid sellers to lien goods or resell them. The document also discusses conditions versus warranties, the caveat emptor rule, and the rights of unpaid sellers.
1. The document discusses various concepts related to economics costs including opportunity cost, explicit costs, implicit costs, fixed costs, variable costs, average costs, marginal costs, economies and diseconomies of scale.
2. It provides examples of costs like purchase cost, installation charges, maintenance charges for a machine. Common and traceable costs as well as historical and replacement costs are also mentioned.
3. Tables showing total costs, fixed costs, variable costs, average costs, and marginal costs at different output levels for firms are included.
The document discusses the law of variable proportions, which states that when the quantity of one input is varied while holding other inputs constant, total output will initially increase at an increasing rate, then at a diminishing rate, until it reaches a maximum and starts decreasing. It provides a production schedule as an example and explains that a rational producer will operate where marginal product is positive. It also presents a case study about a grocery store owner facing problems from increasing customer numbers on weekends.
This document provides an overview of managerial economics and its key principles. It discusses how managerial economics applies microeconomic analysis to business decision-making. Some of the main points covered include:
- Managerial economics helps firms make optimal allocation decisions given scarce resources and aims to maximize profits and meet organizational goals.
- It uses microeconomic concepts like opportunity cost, marginal analysis, and equilibrium.
- Managerial economics is interdisciplinary, combining economics and quantitative techniques to analyze issues like production, pricing, investment, and inventory decisions.
- The principles of opportunity cost, rational decision making at the margin, and people responding to incentives are applied to operational business issues.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
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The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
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2. CONTENTS
Utility Analysis
Marshal Approach
Demand Analysis
Demand Function
Law of Demand
Elasticity of Demand and demand forecasting
Law of Supply and Supply Analysis
8. DETERMINANTS OF DEMAND
• Advertising
• Consumer’s expectation of
future Income and Price
• Seasonal conditions
• Price of Related Good
9. FACTORS INFLUENCING MARKET DEMAND
• Price of the product
• Distribution of income &
wealth in the community
• Community’s common habits
• Standard of living
• Number of Buyers
• Growth in population
10. • Age structure & sex ratio
of the population
• Level of taxation & tax
structure
• Inventions & innovations
• Climate or weather
conditions
• Customs
• Advertisements & sales
propaganda
• Fashions
11. DEMAND FUNCTION
Dx = f (Px, Py, M, T, A, U) where,
• Dx = Quantity demanded for commodity X.
• f = functional relation.
• Px = The price of commodity X.
• Py = The price of substitutes and complementary goods.
• M = The money income of the consumer.
• T = The taste of the consumer.
• A = The advertisement effects.
• U = Unknown variables or influences.
13. DEMAND ANALYSIS
FORECASTING DEMAND MANIPULATING DEMAND
Serves Two Major Purposes
Ancillary Functions
1. Appraisal of performance of a salesman
2. Fixing sales quota
3. Company’s competitive position
DEMAND ELASTICITY
14. DEMAND SCHEDULE
• It shows the price and output relationship.
• Tabular representation of price and demand.
15. DEMAND CURVE
• The geometrical representation of demand
schedule is called the demand curve.
16. LAW OF DEMAND
• As the price of a good rises, quantity
demanded of that good falls.
• As the price of a good falls, quantity
demanded of that good rises.
• Ceteris paribus.
17. DEMAND FUNCTION
• When we express the relationship between
demand and its determinant mathematically, the
relationship is known as demand function.
• The demand for product X can be written in
functional form as-
Dx= f (Px, Y, Po, T, A, Ef, N )
18. ASSUMPTIONS
NO CHANGE IN……………..
• Consumer income
• Consumer preference
• Price of related goods
• Demography
• Range of goods
• Distribution of income
• Government policy
• Weather conditions
19. EXCEPTIONS TO THE LAW OF DEMAND
• Inferior Goods/Giffen goods
• Snob Appeal
• Future Expectation of
Prices/Speculation
• Goods with no Substitutes
• Bandwagon Effect
20. CHANGE IN DEMAND VS. CHANGE IN
QUANTITY DEMANDED
• A shift of the entire demand curve to a new
position is called change in demand.
• Changes in non-price determinants of demand.
23. Why the demand curve slope
downwards?
• Law of diminishing marginal utility.
• Income effect.
• Substitution effect.
• New consumers.
• Multiple use of commodity.
24. Consumer demand in the new
age market
• Consumer trust & loyalty
• Motivation
• Easiness
• Consumer freedom
• Confidence
25. Consumer demand in the new
age market
• Just in time
• Consumer ego
• Beyond expectations
• Reward
• Relation
• Pricing strategy
26. • Elasticity in general terms, refer to easy
expansion or contraction of an object.
27. ELASTICITY OF DEMAND
• Elasticity of demand is defined as the
responsiveness of the quantity of a good to
changes in one of the variables on which
demand depends-
Price of the commodity
Income of the Consumer
Various other factor
29. PRICE ELASTICITY OF DEMAND
• The price elasticity of demand is the percentage
change in quantity demanded divided by the
percentage change in price.
Price elasticity of demand =
Percentage change in quantity demanded
Percentage change in price
30. PRICE ELASTICITY OF
DEMAND
/
/
P
Q Q Q P
E
P P P Q
Point Definition
Arc Definition 2 1 2 1
2 1 2 1
P
Q Q P P
E
P P Q Q
32. Inelastic Demand: Elasticity Is Less Than 1
Quantity
0
$5
90
Demand
1. A 25%
increase
in price . . .
Price
2. . . . leads to an 11% decrease in quantity demanded.
4
100
34. Elastic Demand: Elasticity Is Greater Than 1
Demand
Quantity
4
100
0
Price
$5
50
1. A 25%
increase
in price . . .
2. . . . leads to a 50% decrease in quantity demanded.
35. Perfectly Elastic Demand: Elasticity Equals
Infinity
Quantity
0
Price
$4 Demand
2. At exactly $4,
consumers will
buy any quantity.
1. At any price
above $4, quantity
demanded is zero.
3. At a price below $4,
quantity demanded is infinite.
36. FACTORS INFLUENCING PRICE ELASTICITY OF
DEMAND
• Nature of commodity
• Availability of substitute
• Number of uses
• Height of price and range of price change
• Proportion of expenditure
• Durability of the commodity
38. PRACTICAL SIGNIFICANCE
• Its importance to the businessman
• Importance to government
• Importance to trade unionist
• Importance to economists
• International trade
39. INCOME ELASTICITY
• The degree of responsiveness of the demand for the
commodity to a change in the income of the consumer.
• It is defined as Ratio of percentage change in the quantity
demanded of a commodity to the percentage change in the
income of consumer
40. • Negative ( inferior commodities )
• Zero ( neutral commodities )
• Greater than zero but less than 1( normal
commodities )
• Greater than unity ( Luxurious commodity )
INCOME ELASTICITY
42. USES OF THE CONCEPTS
• Economic development
• Economic fluctuations
• Economic planning
• Demand forecasting
• Foreign trade
43. Cross Elasticity of Demand (CED)
• Cross price elasticity (CED) measures the
responsiveness of demand for good X following a
change in the price of good Y (a related good)
• CED = % change in quantity demanded of product A
% change in price of product B
44. • With cross price elasticity we make an
important distinction between substitute
products and complementary goods and
services.
45. Substitutes
Price of
Good S
Quantity demanded of Good T
Demand
Two Weak Substitutes
P1
P2
Goods S and T are
weak substitutes
A rise in the price of
Good S leads to a
small rise in the
demand for good T
tea and coffee
+
46. Complements
Price of
Good X
Quantity demanded of
Good Y
Demand
Two Close Complements
P2
P1
Goods X and Y are
close complements
A fall in the price of
good X leads to a
large rise in the
demand for good Y
Petrol and
petrol car
-
47. Goods with zero cross-price elasticity of demand .
INDEPENDENT
Price of
Good A
Quantity demanded of
Good B
Demand
P1
P2
P3
Goods A and B have no
relationship.
A fall in the price of good A
leads to no change in the
demand for good B
Therefore the cross-price
elasticity of demand is zero
salt!
49. DEMAND FORECASTING
• Demand forecasting is a prediction or estimation
of the future demand. It tries to find out expected
future sales level, given the present state of
demand determinants.
50. • Passive Forecasts: Where prediction about future
is based on the assumption that the firm does not
change the course of its action.
• Active Forecasts: Where forecasting is done under
the condition of likely future changes in the action
by the firm.
51. The following steps are necessary to
have an efficient forecast of demand:
• Identification of objective
• Determining the nature of goods under
consideration
• Selecting a proper method of
forecasting
• Interpretation of Results
52. USES
• Fulfillment of objectives of the plans
• Preparation of budget
• Stabilization of employment & production
• Expansion of firms
• Other uses
53. Factors influencing
• Time period
• Level of forecast
• General & specific
• Established products and new
products
• Product classification
• other
54. Demand for established product,
therefore, may be forecasted by two
broad methods:
• 1) Opinion Polling Method
• 2) Statistical Method
55. Opinion polling method can be
of three types:-
• Consumer‘s Survey Method
• Sales Force Opinion Method
• Expert‘s Opinion Method
56. Consumer‘s Survey Method is further of
three types:
• Complete Enumeration Survey
• Sample Survey and Test Marketing
• End use
57. Statistical Methods can be of four types:
• Mechanical Extrapolation or Trend
Projection Method
• Barometric Techniques
• Regression Method
• Simultaneous Equation Method
58. • Trend projection method refers to the ―Time Series
Analysis‖ which can be done through:
Fitting trend line by observation
Least Squares linear regression
Moving Average and Annual Difference
Exponential Smoothing
ARIMA (Auto Regressive Integrated Moving Averages) Method
59. Palak has Rs. 300 to spend on sugar and spice. Palak’s marginal
utilities from sugar and spice are shown in the following table.
Suppose that a unit of sugar is priced at Rs. 50 and the price of a unit of
spice is Rs.100
Quantity
of Sugar
MU MU/P Quantity
of Spice
MU MU/P
1 1000 1 1000
2 800 2 800
3 600 3 600
4 400 4 400
5 200 5 200
6 100 6 100
60. 1. Assume the price of pizza is $2.00 and the price of Beer is $1.00
and that at your current levels of consumption, the Marginal Utility
from pizza is 10 and the Marginal Utility from beer is 6.
True or false: You can increase total utility by buying more beer and
less pizza.
→ TRUE
→ Calculate the marginal utility per dollar from each of the goods:
Pizza: MU/$ = 10/2 = 5 Beer: MU/$ = 6/1 = 6
⇒ you receive higher marginal utility from a dollar spent on beer than
from pizza, so to increase your total utility you should buy more beer and
less pizza.
61. 2. The price of vegetable is Rs. 7 per Kg, and the price of chicken is
Rs. 2 per Kg. Your mother currently receives a marginal utility of
14 from consuming vegetable this week and 6 from consuming
chicken this week. The marginal utility of chicken is therefore less
than that of vegetable. Does this imply that your mother should buy
less chicken this week? Explain.
→
62. •Demand function for a product is
Qd=120-P. Workout the demand schedule
for the price Rs. 120,100,80,60,40, and
Rs. 20.
63. • The income increases from Rs. 80,000 to
Rs. 81,000 the quantity demanded of a
good x increases from 3000 to 3050
compute income elasticity of demand