Demand Function and Equation

 Demand FunctionDemand function is an algebraic expression that shows the functional relationship between the demand for a commodity and its various determinants affecting it. This includes income and price along with other determining factors. It can be expressed as:Dx=f(Px, Y, Pr, T, A, P,D,E…)Dx= Demand for commodity XPx= Price of Commodity XY=Income of ConsumerPr=Price of the related goodsT=Taste and preference of the consumerA=AdvertisementP=Population...

Demand, it's Types and Determinants

 Demand It is an effective desire which is backed up by both willingness and ability of the consumer to pay for the goods. It is the amount of goods which is bought at the price at the given period of time. Conditions for the Effective demand: a.      Desire for specific commodity. b.     Sufficient resources to purchase the desired commodity. c.      Willingness to spend...

Economics as a Positive and Normative Science

 a.      Economics as a Positive Science A positive science is that which deals the things as they happen in reality. It explains what is, what was and what will be. The concept of positive economics was introduced by Classical Economists like Adam Smith, J.B Say, Ricardo and modern economists Lionel Robbins. Economics is a positive science because it studies cause and effect relationship between economic phenomena....

Basic Issues of Economics

 a.      a. What to produce and in What Quantities The first central issue of an economy is to decide what goods and services are to be produced and in what quantities. This involves allocation of scarce resources in relation to the comparison of the total output in the economy. Since resources are scarce, the society has to decide about the goods to be produced : wheat, cloth, roads, TV, power, buildings and so on. Once...

Relationship between Human Rights and Social Justice

 Social Justice is a concept of fair and just relations between the individual and society as measured by the distribution of wealth, opportunities for personal activity and social privileges whereas human rights are the basic rights and ideas that everyone should have rights. The relationship between social justice and human rights can be explained through these points: a.      Promotion of Equality Social justice...

Economics as the Study of Scarcity, Choice and Opportunities Cost

 1.     Economics as the Study of Scarcity Scarcity is the condition of insufficiency where the human beings are incapable to meet or fulfill their wants in a sufficient manner. The reason behind this is human wants are unlimited and all human want to have more and superior goods than they have. On the other hand, resources that satisfy human wants are limited or scarce. Scarcity is the central problem of Economy. For example:...

Economics and it's Classification

 Economics Economics is a subject which aims at utilizing the scare resources in the scientific way so that human beings can achieve maximum satisfaction from the use of the limited resources. Economics is a social science that deals with the study of how individuals, governmental bodies, firms, and nations make decisions in allocating scarce resources in order to satisfy their unlimited wants and desires. It is a study of production and consumption...