Because it's More than a Subject
The scarcity of resources relative to human wants gives rise to various basic problems, issues, or questions that must be solved by an economy if it is to fulfil its purpose. These basic economic problems are also called central economic problems. All these problems involve choices to be made by … read more
The law of variable proportion occupies an important place in economic theory. This law examines the production function with one factor variable, keeping the quantities of other factors fixed. In other words, it refers to the input-output relation when output is increased by varying the quantity of one input. When … read more
A change in the price and income alters the consumer’s expenditure pattern. So to know the consumer’s expenditure pattern due to changes in price and income, all the variables should be varied simultaneously. Let, Utility function be Subject to Or Here we can form a new function with the help … read more