Introduction to Micro and Macro Economics
- Types of Utility
- Concepts of Utility
- Relationship Between Total Utility and Marginal Utility
- Law of Diminishing Marginal Utility
- Assumptions of Diminishing Marginal Utility
- Exceptions to the Law of Diminishing Marginal Utility
- Criticisms of the Diminishing Marginal Utility
- Significance of the Diminishing Marginal Utility
- Relationship Between Marginal Utility and Price
- Diminishing Marginal Utility
Elasticity of Demand
Forms of Market
- Concept of National Income
- Features of National Income
- Circular Flow of National Income
- Different Concepts of National Income
- Methods of Measurement of National Income
- Output Method/Product Method
- Income Method
- Expenditure Method
- Difficulties in the Measurement of National Income
- Importance of National Income Analysis
Public Finance in India
Money Market and Capital Market in India
- Financial Market
- Money Market in India
- Structure of Money Market in India
- Organized Sector
- Reserve Bank of India (RBI)
- Commercial Banks
- Co-operative Banks
- Development Financial Institutions (DFIs)
- Discount and Finance House of India (DFHI)
- Unorganized Sector
- Role of Money Market in India
- Problems of the Indian Money Market
- Reforms Introduced in the Money Market
- Capital Market in India
- Structure of Capital Market in India
- Role of Capital Market in India
- Problems of the Capital Market
- Reforms Introduced in the Capital Market
Foreign Trade of India
Introduction to Micro Economics
- Features of Micro Economics
- Analysis of Market Structure
- Importance of Micro Economics
- Micro Economics - Slicing Method
- Use of Marginalism Principle in Micro Economics
- Micro Economics - Price Theory
- Micro Economic - Price Determination
- Micro Economics - Working of a Free Market Economy
- Micro Economics - International Trade and Public Finance
- Basis of Welfare Economics
- Micro Economics - Useful to Government
- Assumption of Micro Economic Analysis
- Meaning of Micro and Macro Economics
Analysis of Demand and Elasticity of Demand
Analysis of Supply
Types of Market and Price Determination Under Perfect Competition
Factors of Production
Introduction to Macro Economics
Determinants of Aggregates
- Introduction of Public Economics
- Features of Public Economics
- Meaning of Government Budget
- Objectives of Government Budget
- Features of Government Budget
- Public Economics - Budget (1 Year)(1 April to 31 March)
- Types of Budget
- Taxable Income
- Budgetary Accounting in India
- Budgetary Accounting - Consolidated , Contingency and Public Fund
- Components of Budget
- Factor Influencing Government Budget
Demand Curve and Its Slope:
Individual Demand Curve :
Individual demand curve is a graphical representation of the individual demand schedule. Figure below represents an individual demand curve.
In the figure above , X axis represents quantity demanded and Y axis represents the price of the commodity. The demand curve DD slopes downward from left to right, indicating an inverse relationship between price and quantity demanded.
Market Demand Curve :
Graphically, the market demand curve is a horizontal summation of individual demand curves. It is based on the market demand schedule. Figure below represents the market demand curve.
In the figure above, X axis represents market demand and Y axis represents the price of the commodity. The market demand curve ‘DD’ slopes downward from left to right, indicating an inverse relationship between price and market demand.
Reasons justifying downward sloping demand curve are as follows :
1) Law of Diminishing Marginal Utility :
We have seen that marginal utility goes on diminishing with an increase in the stock of a commodity and vice-versa. Therefore, a consumer tends to buy more when price falls and vice-versa. This implies that demand curve is downward sloping.
2) Income effect :
In the case of normal goods, when price falls, purchasing power (real income) of a consumer increases which enables him to buy more of that commodity. This is known as income effect.
3) Substitution effect:
In case of substitute goods, when the price of a commodity rises, the consumer tends to buy more of its substitute and less of that commodity
whose price has increased. This is known as substitution effect.
5) New Consumers :
When the price of a commodity falls, a new consumer class appears who can now afford the commodity. Thus, total demand for commodity increases
with fall in price.
Shaalaa.com | Demand and Supply
State with reason, whether you Agree or Disagree with the following statement.
Demand curve slopes downward from left to right.
Fill in the blank using proper alternative given in the bracket:
Market demand is a total demand of...............buyers.
State with reason whether you 'agree' or 'disagree' with the following statement.
Demand curve slopes downward from left to right.