Indifference Curve Analysis
A very well accepted approach of explaining consumer’s demand is indifference curve analysis. As we all know that satisfaction of a human being cannot be measured in terms of money,…
Marginal Utility Analysis
Utility is a term referring to the total satisfaction received from consuming a good or service. It differs from each individual and helps to show the satisfaction of the consumer after…
Demand Forecasting
Demand Demand is a widely used term, and in common is considered synonymous with terms like ‘want’ or 'desire'. In economics, demand has a definite meaning which is different from…
Price Ceiling and Price Flooring
Price ceilings and price flooring are basically price controls. Price Ceilings Price ceilings are set by the regulatory authorities when they believe certain commodities are sold too high of a…
Cross Elasticity of Demand
An economic concept that measures the responsiveness in the quantity demanded of one commodity when a change in price takes place in another good. The measure is calculated by taking…
Factors Affecting Price Elasticity of Demand
The key factors which determine the price elasticity of demand are discussed below − Substitutability Number of substitutes available for a product or service to a consumer is an important…
Demand & Elasticities
The 'Law Of Demand' states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and…
Market System & Equilibrium
In economics, a market refers to the collective activity of buyers and sellers for a particular product or service. The Economic Systems Economic market system is a set of institutions…
Regression Techniques
Regression is a statistical technique that helps in qualifying the relationship between the interrelated economic variables. The first step involves estimating the coefficient of the independent variable and then measuring…
Economic Analysis & Optimizations
Economic analysis is the most crucial phase in managerial economics. A manager has to collect and study the economic data of the environment in which a firm operates. He has…
