Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Budget line and its economic interpretation
The indifference curve shows us consumer preferences but it does not show us the situation in the market place. Here the consumer is constrained by income and by the prices of X and Y. They can both be shown by a budget line. Suppose that product X costs K£2 per unit and product Y K£1 per unit and that the consumer's income is K£10.
A budget line shows all the combinations of two products which can be purchased with a given level of income. The slope of the line shows the relative prices of the two commodities.
If the consumer is inside the budget line, e.g. at point E he is consuming les than the income. Thus he can consume more of X or more of Y or more of both. If he is on the budget line e.g. at point C he is spending the full budget. He is said to be consuming to budget constraint. To consume more of X e.g. moving from C to D, he must consume less of Y and vice versa. For a given budget and given price, he cannot be at a point off the budget line to the right, e.g. at point F.
What are the conclusions about the cost of production and efficiency in the long-run equilibrium of a perfectly competitive industry? Three conclusions regarding the cost of pr
p=10, TC= 1000+2Q+.01Q^2, Q=?
Factors influencing the supply of a commodity a) Own Price of the commodity There is a direct relationship between quantity supplied and the price so that the hig
The market demand for brand X has been estimated as Qx=1500-3Px-0.05I-2.5Py+7.5Pz
Q. Availability of Substitutes - Determinants of Demand? One of the most important determinants of elasticity of demand for a commodity is availability of its substitutes. Clos
Question 1: (a) How do economists go about studying the economics of the public sector? Describe the four stages of analysis. (b) What are the main reasons explaining syst
What is advertising elasticity? Explain
Explain the short-run production function with one variable input with the help of assumed figures. Clearly indicate the three stages of physical product, using table and graphs.
The demand for good X is estimated to be: where p x price of X in dollars M = personal disposable income in trillions of dollars per year P y = price of a competitive in do
BUSINESS CYCLES Meaning: The business cycle is the tendency for output and employment to fluctuate around their long-term trends. The figure below presents a stylised
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd