Notes and Summaries for Fundamental of Economics || 1

Notes on Demand and Elasticity

Demand    refers    to    the    Quantities    of Commodity that the Consumers are Able to Buy at each possible Price during a given Period of Time, other things being equal.

  1. Willing to Purchase at Various Prices during Period of Time
  2. Able to Purchase at Various Prices during Period of Time

Price and Output Determination in Monopoly and Imperfect Markets

This notes covers about the different markets, price determination, in such market and equilibrium in monopoly, perfect competition, oligopoly, monopolistic competition. .

Theory of Cost concepts its type and curve

• Cost Analysis refers to the Study of Behaviour of Cost in relation to one or more Production Criteria like size of Output, Scale of Operations, Prices of Factors of Production.

• In other words, Cost Analysis related to the Financial Aspects of Production Relations against Physical Aspects.

Theory of Consumer Behaviour- Indifference Curve

This note covers Indifference curve, utility, law of diminishing marginal utility. Consumers surplus. Utility is synonymous with "Pleasure", "Satisfaction" & a Sense of Fulfillment of Desire

Law of Supply, Individual and Market Supply Its Curve and Elasticity

  1. Willing to Offer to the Market at Various Prices during Period of Time
  2. Able to Offer to the Market at Various Prices during Period of Time
  3. What Firms Offer for Sale, Not Necessarily  to What they Succeed in Selling
  4. Is a Flow i.e. as per unit of time, per day, per week, or per year

Money Banking and Commercial Banking

 Traditionally, money has been defined on the basis of its general acceptability and its functional aspects. Thus, any thing which performed the following three function:
 Served as medium of exchange
 Served as a common measure of value
 Served as a store of values was termed as money.

Population Poverty Unemployment

This note covers about unemployment, poverty and popolation

• Population  refers  to  Total  number  of  People residing in a Place.

• Growth   in   Population   is   considered   to   be favourable in certain Countries like Australia because:

Theory Of Production and Law of variable proportions

• In  General,  Production  means,     "Any Activity of Making Something Material."

• In  Economics,  Production  means,  "Any Economic  Activity  which  is  directed  to the Satisfaction of the Wants of the People.