knowledge about Economics

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...

Modern economists consider the use and help of fundamental mathematical  tools to discuss the relationship of various quantities in economics very fruitful. In view of the importance of such relationships we study the following concepts: Variables Generally the quantities which change their values are known as "Variables". It can be well defined as under: "A variable is a magnitude which is measureable and taken of different values" According to Prof. Kooros "A variable is a symbol which during a discussion may assume different values or a set of admissible values". E.T. Dowling defines variable as under: "A variable ranges over a set of possible values within a given problem". In normal life Time, Temperature, Speed of a vehicle are regarded as variables. In economics there are many quantities which also change their values e.g  Income, Consumption, Saving , Investment, Price, Demand, Supply, Utility etc. In ma...

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...