Determinants of supply and demand Now that we have addressed how and the demand and supply curve works, in this article, we will introduce the next topic: shifts in the demand and supply curves. These are called determinants of supply and demand. A change in...
What is the Law of Demand and Supply? There are two sides to a Market: the consumers and the producers. From our Marginal Analysis article, we established that under normal circumstances, if the price goes up, the demand for that product goes down, and on the same...
What is Marginal Utility? In Economics, there is a study that is made to understand the relationship between the degree of satisfaction of getting one more additional unit of a good or service, and the willingness to pay for it. This degree of satisfaction, this gain...
What is Marginal Analysis? Marginal analysis is the study of the additional economical benefits of doing a specific activity in comparison to the additional costs incurred by that same activity. The world marginal refers to the cost-benefit relationship of one more...
What is Cost-Benefit Analysis? Cost-Benefit Analysis is a technique designed to determine the feasibility of a project or plan by quantifying costs and benefits including external costs and benefits. It essentially compares the costs and benefits of a project and then...
Resource Allocation and Economic Systems On the principle that resources are scarce, the use and production of these involve constraints and trade-offs. You have to allocate your resources in order to produce something that is in line with your objectives, as you have...
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