Unsought Products

Unsought Products

What is Unsought Products? Unsought products are referred to the products which consumer are unaware of or does not normally buy. Purchase of such goods is usually done out of fear of danger or the ries of danger.  Unsought product examples are fire extinguishers, life insurance, reference books, and funeral services.  In the case of … Read more

The Monetary Unit Assumption and Gresham’s Law

Monetary Unit

The monetary unit is the basic primary denomination of a currency. It is also called the fundamental unit of account and can be measured by its purchasing power parity. There are several problems with this assumption, including its efficacy in an inflationary economy. Let’s discuss some of them in this article. Also, we’ll look at … Read more

Tax multiplier – Derivation, Formula, and Graphical Representation

Tax multiplier - Derivation, Formula, & Graphical Representation

Tax Multiplier emphasizes the change in the income or GDP level due to the change in taxation levied by the government. The concept covered will be marginal propensity to consume, marginal propensity to save, tax multiplier formula, derivation, examples, graphical representation, government spending multiplier, uses and limitations for the same.

Capital Resources Definition – Types and Examples

Capital Resources

Capital resources definition emphasizes on the man made products and services which are produced with a period of time. It includes tools, machinery, equipment and other items. Examples quoted under capital resources are included in the writing along with the aids of production it provides.

What Is A Factor Market?

What Is Factor Market

What is a factor market: The factor market is referred to all the business resources – land, labour, rent, wages. In the circular flow of income and expenditure economy is divided into firms and households. Where the household sector provides the factors of production to firms and it is called a factor market.

Ordinal Utility – indifference curve analysis

Ordinal Utility

Ordinal utility depicts the consumer’s decision making behaviour by the level of satisfaction attained after the consumption of commodities that are arranged in order of preferences. Further, the consumer equilibrium studied is indifference curve analysis using the ordinal utility.

Economic Utility Definition | Types of Utility And Marginal Utility

Economic Utility Definition

Economic Utility Definition refers to the satisfaction gained by an individual or power of a commodity that depends upon customer’s need and want. Moreover there are terms like Marginal and Total utility along with their relationship explained through table and graph represntation. further elaborating law of diminishing marginal utility.

Pricing under Monopoly

Pricing Under Monopoly

Pricing Under Monopoly Firms And Level Of Price Discrimination Pricing under monopoly is different from the other market structure due to the single seller in the market, and it leads to many advantages when it comes to pricing. Before, we move to the concept of pricing under monopoly lets understand the meaning of monopoly market … Read more

Law of Returns to Scale

The Law of returns to scale discusses the change and rate of change in output due to the rate of change in the input. In other words, the law of returns to scale illustrates the proportionate or percentage change in the amount of input changes the amount of output. The Law of returns to scale … Read more

Cardinal Utility

Cardinal Utility

Definition: Cardinal Utility approach was given by neo-classical economists, who said that satisfaction gained after using a certain commodity can be termed as Utility. Also, they assumed that cardinal utility can be measured in quantitative terms (or money), like 1,2,3,4 and so on. Meaning of Cardinal Utility:  Consumers can express their satisfaction after consuming goods … Read more

Oligopoly Market

oligopoly market

Oligopoly Market Meaning Oligopoly market structure involves only a few competitors in the market and referred to as imperfect competition. In this form of market, products are homogeneous or differentiated and the number of sellers in the market are between two and ten. For instance, the cold drink industry in India selling homogeneous as well … Read more