Economics

Types of Income Elasticity of Demand The income elasticity of demand shows the responsiveness of quantity demanded of a certain commodity to the change in…

Concept of Income Elasticity of Demand The income elasticity of demand shows the responsiveness of quantity demanded of a certain commodity to the change in…

Concept of Cross Elasticity of Demand Cross elasticity of demand is the relation between the percentage change in demand for a commodity to the percentage…

Concept of Cardinal Utility Analysis Cardinal Utility is the idea that economic welfare can be directly observable and given a value. Cardinal utility analysis is…

Determinants of Elasticity of Demand A good with more close substitutes will likely have a higher elasticity. The higher the percentage of a consumer’s income…

Concept of Total Utility Total utility refers to the utility derived out of the consumption of a commodity. The total satisfaction received from the consumption…

Concept of Marginal Utility Utility is an idea that people get a certain level of satisfaction / happiness / utility from consuming goods and service.…

Assumptions, Exceptions and Importance of the Law of Diminishing Marginal Utility This law was first developed by a German economist Hermann Heinrich Gossen. This law…

Concept of the Law of Diminishing Marginal Utility The marginal utility of a commodity diminishes at the consumer gets larger quantities of it. Marginal utility…

Importance of Consumer’s Surplus Consumer surplus is an extra amount which we feel as surplus of satisfaction. We as consumers give importance to this concept…

Condemnation of Consumer’s Surplus The concept of consumer’s surplus is one of the most important idea in economic theory especially in demand and welfare economics.…

Theory of Consumer’s Surplus The concept of consumer’s surplus is one of the most important idea in economic theory especially in demand and welfare economics.…