economicsmicro.blogspot.com
Economics: Difference : Micro and Macro Economics
http://economicsmicro.blogspot.com/2008/11/difference-bw-micro-and-macro-economics.html
Difference : Micro and Macro Economics. Microeconomics studies subjects like. Microeconomics can be defined as the study of an individual. Eg consumption, investment, hours of work. Eg how much to produce, what price to charge. The Determinants of Prices and Quantities in specific markets. Market Competition ( what competitors are doing). Macroeconomics studies subjects like. Macroeconomics csn be defined as the study of aggregates or the study of economy as a whole. Aggregate demand and supply. Law of D...
economicsmicro.blogspot.com
Economics: Changes in Market Equilibrium
http://economicsmicro.blogspot.com/2008/11/changes-in-market-equilibrium.html
Changes in Market Equilibrium. Refers to a situation in which quantity demanded is equal to the quantity supplied, the point at which demand and supply curve meets. Results in a right ward shift in supply curve, leading to a new equilibrium point( the intersection point of demand and new supply curve.). With the increase in supply, supply curve shifts rightward. The new equilibrium point is E1. It would result in fall in prices and increase in quanity demanded. The new equilibrium point is E1. Very inter...
economicsmicro.blogspot.com
Economics: Change in Demand and Increase/Decrease in quantity demanded
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Change in Demand and Increase/Decrease in quantity demanded. Movement and Shift in the Demand Curve. Other things being equal, Demand. Of a commodity has a negative relationship with the price of the commodity. 8211; Movement in demand can be demonstrated as the change in quantity demanded. As a result of change in price. Movement is along the same demand curve. When price increases, demand decreases. Increase/ Decrease)Shift in Demand. At the same price, the supply curve would shift to the left. Consume...
economicsmicro.blogspot.com
Economics: Economics : Art Or Science
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Economics : Art Or Science. Economics is both a science as well as an art. Economics involves developing policies and implementing those policies, which is an art in itself. Science is the relationship between causes and effects. Economics has theories, which describes cause and effect relationship eg. cause - fall in price and effect - increase in demand. Economics is a positive as well as normative science. APositive Science (What is? 8211; Actual happenings. 8226; India is an over-populated country.
economicsmicro.blogspot.com
Economics: Consumer surplus and price elasticity of demand
http://economicsmicro.blogspot.com/2008/11/consumer-surplus-and-price-elasticity.html
Consumer surplus and price elasticity of demand. Consumer surplus and price elasticity of demand. Inelastic Demand means fixed demand ( demand does not changes with a change in price). When demand is inelastic, there is a greater potential of consumer surplus because there are some consumers who are willing to pay a higher price to consume that product. Whatever the price, the quantity demanded remains the same. Means consumers are willing to pay a higher price for buying the commodity. Now, suppose the ...
economicsmicro.blogspot.com
Economics: 08_11
http://economicsmicro.blogspot.com/2008_11_01_archive.html
All the topics are on the left side. For discussing Problems, Please use the comment section and add. Maximin strategy is also called low risk strategy. It is the strategy that maximizes the minimum gain that can be achieved. Lets revise dominant strategy in this case. Firm B will gain by only keeping the prices low, no matter the firm A does. So, Low price is the dominant strategy for the firm B. In the above example, only firm B has a dominant strategy.Firm A doesn’t have a dominant strategy. To start ...
economicsmicro.blogspot.com
Economics: What is a Market?
http://economicsmicro.blogspot.com/2008/11/what-is-market.html
What is a Market? A market is a place where buyers and sellers meet and interact. In today’s internet era, buyers and sellers don’t. Meet necessarily, but they interact and and perform their desired roles. Market structure is best defined as the organisational and other characteristics of a market. There are some characteristics which affect the nature of competition and pricing. The most important features of market structure are:. The number of firms. The market share of the largest firms. Central Prob...
economicsmicro.blogspot.com
Economics: Market Demand
http://economicsmicro.blogspot.com/2008/11/market-demand.html
Market demand composes of the sum of the demand made by all the people in market. Suppose there are only 2 consumers in the market A and B. So,. Market Demand = Demand by A Demand by B. Market demand can be explained with the following table and curves. Is the sum of demands. Of all the consumers in the market. Market demand curve follows a negative relation with the price. If you like it, then please leave a comment. December 3, 2013 at 1:12 PM. August 2, 2015 at 8:11 AM. Changes in Market Equilibrium.
economicsmicro.blogspot.com
Economics: Equilibrium Price
http://economicsmicro.blogspot.com/2008/11/equilibrium-price.html
Equilibrium Price refers to the the market price at which the supply of an item equals thedemand of it. equilibrium is an important concept in economics. Equilibrium price is also referred as the equilibrium output. Market equilibrium occurs where the amount consumers wish to purchase at a particular price is the same as the amount producers are willing to offer for sale at that price. It is the point at which there is no incentive for producers or consumers to change their behaviour. 3(2) 2 = 8. Differe...
economicsmicro.blogspot.com
Economics: Demand
http://economicsmicro.blogspot.com/2008/11/demand_13.html
Goods are demanded because of their utility. What is a Want: The basis of all economic activities is the existence of human wants and the process of fulfillment of this want is the base of economic activity. 8220;Desire is the wish to have something. But ‘want’ is an effective desire for a particular thing, which can be satisfied by making an effort to acquire it. Want can be used for demand but Desire can not be. Q = f(p) It means quantity demanded is a function of Price. Change in consumer tastes.
