Central Problems of an Economy
Central problems arise in an economy due to scarcity of resources having alternative uses in relation to unlimited wants. The Central Problem of all economies is scarcity. Limited Resources +…
Types of goods
Normal goods - the quantity demanded of such commoditiesincreases as the consumer’s income increases and decreases as the consumer’s income decreases. Such goods are called normal goods. Giffen goods - a Giffen good is an…
What is a Market?
Market A market is a place where buyers and sellers meet and interact. In today’s internet era, buyers and sellers don’t meet necessarily, but they interact and and perform their…
Equilibrium Price
Equilibrium Price refers to the the market price at which the supply of an item equals thedemand of it. equilibrium is an important concept in economics. Equilibrium price is also…
Change in Demand and Increase/Decrease in quantity demanded
Movement and Shift in the Demand Curve Other things being equal, Demand of a commodity has a negative relationship with the price of the commodity (Change)Movement in Demand – Movement in…
Supply
Definition Supply of a commodity can be defined as the amount of goods that producers are willing to supply / sell at a given price. Supply and Price Price usually…
Market Demand
Market demand composes of the sum of the demand made by all the people in market. Suppose there are only 2 consumers in the market A and B. So, Market…
What is Economics?
Economics is the study of an economy. An economy can be a small household economy, a business economy, a state economy or a national economy.To understand economics, let’s take…
Bureau of Economic Analysis – BEA
DEFINITION of 'Bureau of Economic Analysis - BEA' The Bureau of Economic Analysis is a division of the U.S. federal government's Department of Commerce that is responsible for the analysis…
Fixed Income
What is 'Fixed Income' Fixed income is a type of investment in which real return rates or periodic income is received at regular intervals and at reasonably predictable levels. Fixed-income…
