Economics is the social science that studies the production,distribution and Consumption of goods and services.Economics focuses on the behaviour and interactions of economic agents and how economics work. Definition of Economics The word economics has been derived from the Latin word "Oiko Nomos" which means household budget. This explains how the persons of a house manage to earn money and spend it. Later on this word was usedoing on state called "Polos". This explains that how the people of a state use to spend their lives and earn means of living. For thisome reasonso it was better called as "Political economy". However these two words were separated and become separate disciplines. The first one become political science and later one the subject of economics. Evolution of Economics The evolution of the definition of economics has passed through various stages. However it can be broadly classified into t...
Demand The demand is a very crucial concept in economics. The determination of price such goods, services and resources in a free market economy depends upon two opposite force "demand" and "supply". In order to highlight the problem of price determination we initially take into account the concept of demand as under: Definition of Demand Common demand means a mere "wish" or "desire" to have a commodity. But in economics, at least two conditions must be fulfilled for the existence of demand. (a) A strong "will" to purchase anything. (b) Power to purchase a commodity. According to Prof. Benham, " Demand is the quantity of a commodity which a Consumer are prepared to purchase at a certain price during a specific period of time". Law of Demand Law of demand can be described in view of the functional relationship between price and quantity demand. Our common observation is that; with the change in the price o...