Elasticity of Demand : Elasticity of Demand measures the extent to which quantity demanded of a commodity increases or decreases in response to increase or decrease in any of its quantitative determinants. Formula :Elasticity of Demand = % change in quantity demand of ‘X’ / % change in factors affecting demand for ‘X’ Accordingly, elasticity … Read more
Demand : It refers to the quantity of a commodity that the consumer is able and willing to buy at each possible price during a given period of time, other things being equal.There are four elements for a commodity – Law of Demand : The law of demand states that, other things being equal, the … Read more
In class 11, we studies only Microeconomics Economy : Economy is an economics organization which provides us sources to earn livelihood. Important Questions about Economy :- Que. What is the economics problem and why does it arise? Ans. Economic problem is mainly the problem of choice among scarce resources, which means, in every economy human … Read more
Consumer Equilibrium Consumer Equilibrium refers to a situation, when consumer spend his income in such a manner that he gets maximum satisfaction and he feels no urge to change. Utility : Utility is a want satisfying power of a commodity. Total Utility : It is the sum of total Utility which is derived by consumer … Read more