Central Problems of an Economy
The scarcity of resources relative to human wants gives rise to various basic problems, issues, or questions that must be …
Micro Economics
Determinants of Demand / Factors affecting Demand
Law of demand states the relationship between price and quantity demanded by assuming “other things remaining the same”. When there …
Meaning of Demand
In day-to-day language, we often consider meaning of demand as desire. Desire means an urge to have something. In Economics, …
Law of Variable Proportion
The law of variable proportion occupies an important place in economic theory. This law examines the production function with one …
Indirect Utility Function
In the cardinal utility approach, the utility function was direct in the sense that the total utility was related to …
Cardinal Utility
The consumer is assumed to be rational. Given his income and the market prices of the various commodities, he plans …
Basic Competitive Models
Basic competitive models gives an answer of the control problems of an economy i.e., who makes the decision of what …
Slutsky Equation (Theorem)
A change in the price and income alters the consumer’s expenditure pattern. So to know the consumer’s expenditure pattern due …
Cobb – Douglas Production Function
This Cobb-Douglas production function is based on the empirical study of the American manufacturing industry made by Paul H. Douglas …
Inter-temporal Price Discrimination
Two other closely related forms of price discrimination are important and widely practiced. The first of these is inter-temporal price …