EQUAL-PRODUCT CURVES OR ISOQUANTS
Equal-product curves are similar to the indifference curves of the theory of consumer’s behaviour. An equal-product curve represents all those input combinations which are capable of producing the same level…
THEORY OF PRODUCTION
The act of production involves the transformation of inputs into outputs. The word production in economics is not merely confined to effecting physical transformation in the matter, “It also covers…
Factors determining price elasticity of Demand
The elasticity of demand depends on the following factors namely 1. Nature of the product 2. Extent of usage 3. Availability of substitutes 4. Income level of people 5. Proportion…
Types of price elasticity
Different products react differently to the price change. A price change for a essential product such as rice has little impact on demand while the price change in other products…
PRICE ELASTICITY OF DEMAND
We have discussed in previous chapters that when the price of a good falls, its quantity demanded rises and when the price of the good rises, its quantity demanded falls.…
LAW OF DEMAND
Law of demand establishes a relationship between the price and the quantity demanded of a commodity. Other things remaining the same, when the price of a commodity falls its demand…
Meaning of Demand
The demand for any commodity, at a given price, is the quantity of it which will be bought per unit, of time at the price. From this definition of demand…
Future worth comparisons
When each of the cash flows of projects is expressed in terms of future time by the help of discounting factor is known as the future worth method4 . We…
Present worth comparisons
Comparisons of assets or investment projects are necessary in order to select the best among the alternatives, i.e., to accept one and reject others. When these alternatives are mutually exclusive…
Cash Flow Diagrams
Cash flow diagrams are graphical representation of cash flows (inflows and out flows) along a time line. Individual inflows or outflows are designated by vertical lines and relative magnitude can…
