Topics
Micro Economics
Introduction to Micro and Macro Economics
- Branches of Economics
- Father of Econometrics: Ragnar Frisch
- Microeconomics
- Macroeconomics
- Micro Economics VS Macro Economics
Introduction to Micro Economics
- Analysis of Market Structure
- Microeconomics
- 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
- Welfare Economics
- Micro Economics - Useful to Government
- Assumption of Micro Economic Analysis
Consumers Behavior
Analysis of Demand and Elasticity of Demand
Analysis of Supply
Types of Market and Price Determination Under Perfect Competition
Factors of Production
- Factors of Production - Feature of Capital
- Factors of Production
Macro Economics
Utility Analysis
- Basic Concepts of Microeconomics > Utility
- Commodities and Their Specific Utility for Individuals
- Total Utility and Marginal Utility
- Law of Diminishing Marginal Utility
- Paradox of Value
- Relationship Between Marginal Utility and Price
- Indifference Curve Analysis by Hicks and Allen
Introduction to Macro Economics
- Macroeconomics
- Micro Economics VS Macro Economics
- Allocation of Resource and Economic Variable
National Income
Determinants of Aggregates
- Total Demand for Good and Services
- Concept of Aggregate Demand and Aggregate Supply
- Consumption
- Investment Demand
- Government Demand
- Foreign Demand
- Difference Betweeen Export and Import
- Effect of Population of Consumption Expediture
- Types of Investment Expenditure
- Micro Eco-Equilibrium
Money
- Concept of Money
- Functions of Money
- Standard of Deferred Payment
- Standard of Transfer Payment
- Money - Store of Value
- Barter system
- Monetary Payments
- Concept of Good Money
Commercial Bank
Central Bank
- Central Bank
- Central Bank Function - Banker's Bank
- Central Bank as a Controller of Credit
- Monetary Function of Central Bank
- Non Monetary Function of Central Bank
- Methods of Credit Control
- Repo Rate and Reverse Repo Rate
- Central Bank Function - Goverment Bank
Public Economics
- Introduction of Public Economics
- Features of Public Economics
- 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 (Structure) of the Government Budget
- Factor Influencing Government Budget
Demand Analysis
- Concept of Demand
- Demand Schedule
- Individual Demand Schedule
- Market Demand Schedule
- Demand Curve
- Individual Demand Curve
- Market Demand Curve
- Reasons for the Downward Slope of the Demand Curve
- Types of Demand
- Determinants of Demand
- Law of Demand
- Exceptions to the Law of Demand
- Variations in Demand
- Changes in Demand
Elasticity of Demand
- Concept of Elasticity of Demand
- Types of Elasticity of Demand > Income Elasticity
- Types of Elasticity of Demand > Cross Elasticity
- Types of Elasticity of Demand > Price Elasticity
- Perfectly Elastic Demand
- Perfectly Inelastic Demand
- Unitary Elastic Demand
- Relatively Elastic Demand
- Relatively Inelastic Demand
- Methods of Measuring Price Elasticity of Demand
- Linear Demand Curve
- Non-Linear Demand Curve
- Factors Influencing the Elasticity of Demand
- Importance of Elasticity of Demand
- Determinants of Price Elasticity of Demand
Supply Analysis
- Concept of Supply
- Concept of Total Output
- Concept of Stock
- Distinguish between Stock and Supply
- Supply Schedule
- Individual Supply Schedule
- Market Supply Schedule
- Determinants of Supply
- Law of Supply
- Variations in Supply
- Changes in Supply
- Cost Concepts > Total Costs
- Cost Concepts > Average Cost
- Cost Concepts > Marginal Cost
- Revenue Concepts
- Total Revenue
- Average Revenue
- Marginal Revenue
Forms of Market
- Concept of Market
- Classification of Market > Based on Place
- Classification of Market > Based on Place
- Classification of Market > Based on Time
- Classification of Market > Based on Competition
- Perfect Competition
- Price Determination Under Perfect Competition
- Imperfect Competition
- Monopoly
- Concept of Monopsony
- Oligopoly
- Monopolistic Competition
Index Numbers
- Index Numbers
- Features of Index Numbers
- Types of Index Numbers
- Index Numbers Used by Government of India
- Significance of Index Numbers
- Rebasing of GDP, IIP, and WPI
- Construction of Index Numbers
- Methods of Constructing Index Numbers > Simple Index Number
- Price Index Number
- Quantity Index Number
- Value Index Number
- Methods of Constructing Index Numbers > Weighted Index Number
- Laaspeyre’s Price Index Number
- Paasche’s Price Index Number
- Concepts of Sensex and Nifty
- Crops in India's Agricultural and Industrial Production Index
- Limitations of Index Numbers
National Income
- Concept of National Income
- Features of National Income
- Circular Flow of National Income
- Two Sector Model of Circular Flow of National Income
- Three Sector Model of Circular Flow of National Income
- Four Sector Model of Circular Income
- Different Concepts of National Income
- Concept of Green GNP
- Methods of Measurement of National Income
- Output Method/Product Method
- Income Method
- Expenditure Method
- Concept of Mixed income
- Difficulties in the Measurement of National Income
- Importance of National Income Analysis
Public Finance in India
- Public Finance
- Difference Between Public Finance and Private Finance
- Structure of Public Finance > Public Expenditure
- Important Social Welfare Schemes by the Government
- Structure of Public Finance > Public Revenue
- Public Revenue > Taxes
- Types of Taxes
- Direct Tax
- Indirect Tax
- Public Revenue > Non-tax Revenue
- Structure of Public Finance > Public Debt
- Structure of Public Finance > Fiscal Policy
- Structure of Public Finance > Financial Administration
- GST(Economics)
- Government Budget
- Revenue and Capital Budgets
- Types of Budget
- Importance of Budget
Money Market and Capital Market in India
- Concept of Financial Market
- Money Market in India
- Structure of Money Market in India > Organized Sector
- 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)
- Structure of Money Market in India > Unorganized Sector
- Money Market Instruments
- Role of Money Market in India
- Problems of the Indian Money Market
- Reforms Introduced in the Money Market
- Recent Developments in Banking Sector
- Capital Market in India
- Structure of Capital Market in India
- Role of Capital Market in India
- Problems of the Capital Market
- Regional Stock Exchanges in India
- Reforms Introduced in the Capital Market
- Economic Policy in an Economy
Foreign Trade of India
- India’s Trade Relations Before 1947
- Internal Trade
- Foreign Trade of India
- Types of Foreign Trade
- Role of Foreign Trade
- India’s Recent Trade Relations with China and Japan
- Composition of India’s Foreign Trade
- India’s Foreign Trade Share in GNI
- Composition of India's Imports
- Composition of India's Exports
- Direction of India’s Foreign Trade
- Trends in India’s Foreign Trade since 2001
- Concept of Balance of Payments
- Balance of Trade
- Member Nations of OPEC and OECD
- Introduction
- Statement
- Formula: Law of Demand
- Definition: Law of Demand
- Assumptions
- Tabular Representation
- Demand Curve
- Key Point Summary
CISCE: Class 12
Introduction
Law of Demand is a key principle in economics. It explains how the quantity demanded of a product changes when its price changes, all other factors being constant. This is called the 'ceteris paribus' condition.
CISCE: Class 12
Statement
When the price of a commodity falls, people buy more of it. When the price rises, people buy less — other factors remain the same.
Maharashtra State Board: Class 12
CISCE: Class 12
CISCE: Class 12
Formula: Law of Demand
Dx = f(Px, Pn, Y, T)
Where Dx = Demand for commodity x,
Px = Price of the commodity x,
Pn = Price of related commodities,
Y = Income of the consumer,
T = Taste.
Maharashtra State Board: Class 12
CISCE: Class 12
CISCE: Class 12
Definition: Law of Demand
- Marshall: “Amount demanded increases with a fall in price and diminishes with a rise in price, other things being equal.”
- Samuelson: “People buy more at lower prices and less at higher prices, ceteris paribus.”
- Ferguson: “The quantity demanded varies inversely with price.”
CISCE: Class 12
Assumptions
- The consumer’s income does not change.
- Tastes and preferences do not change.
- Prices of similar/related goods stay the same.
- Population size and structure stay constant.
- No expectation of future price changes.
CISCE: Class 12
Tabular Representation
| Price per Kg (₹) | Quantity Demanded (Kgs) |
|---|---|
| 5 | 10 |
| 4 | 20 |
| 3 | 30 |
| 2 | 40 |
| 1 | 50 |
As price drops, quantity demanded rises — showing an inverse relation.
CISCE: Class 12
Demand Curve
Maharashtra State Board: Class 12
CISCE: Class 12
CISCE: Class 12
Key Points: Law of Demand
- There is an inverse relation between price and quantity demanded.
- All other factors must remain constant for the law to apply.
- The demand curve always slopes downwards.
Test Yourself
Related QuestionsVIEW ALL [24]
The following table shows the amount of sugar bought by a household at different prices:
| Period | Price (₹ per kg) | Amount Bought (kg) |
| Jan. 2000 | ₹ 15 | 4 |
| Feb. 2000 | ₹ 16 | 5 |
Does the behaviour of household contradict the law of demand? Give reasons in support of your answer.
