Demand Analysis
Concept of demand
Law of Demand: The law of demand states that the
quantity demanded of a good falls when the price
of the good rises, and vice versa, provided all other
factors that affect buyers decisions are unchanged
Demand for a com

Concept of Elasticity
Elasticity
Elasticity measures the magnitude of market
reactions to changes in price caused by shifts
in demand or supply. It is expressed as a
ration of percentage change of one variable
(say, X) relative to the percentage change o

Production Function
The production function
Definition: The production function expresses
a functional relationship between quantities
of inputs and outputs. It shows how and to
what extent output changes with variations in
inputs during a specific perio

Consumer Surplus
Marshallian and Hicksian
Meaning of Consumers Surplus
The concept of consumers surplus is believed
to have been originated by a French engineer
Arsene Julius Dupit in 1844 in his effort to
measure social benefit of such collective goods