Topics
Demand
- Introduction to Microeconomics and Macroeconomics
- Microeconomics
- Macroeconomics
- Macroeconomics Vs Microeconomics
- Introduction to Demand
- Meaning of Demand
- Features of Demand
- Types of Demand
- Determinants of Demand
- Demand Function
- Quantity Demanded and Demand
- Law of Demand
- Demand Schedule
- Demand Curve
- Individual Demand Curve to Market Demand Curve
- Slope of the Demand Curve
- Linear Demand Curve
- Reasons for the Downward Slope of the Demand Curve
- Importance of the Law of Demand
- Exceptions to the Law of Demand
- Movement Along the Demand Curve
- Change in Demand – Shift in Demand Curve
- Difference Between Extension and Increase in Demand
- Difference Between Contraction and Decrease in Demand
- Cross Price Effects
- Relationship Between Income and Demand
- Impact of Tastes and Preferences on Demand for a Commodity
- Industry Demand Vs Firm Demand
Microeconomic Theory
Theory of Income and Employment
Elasticity of Demand
- Concept of Elasticity of Demand
- Types of Elasticity of Demand > Price Elasticity
- Methods of Measuring Price Elasticity of Demand
- Percentage or Proportionate Method
- Total Expenditure Method
- Point Method (Geometric Method)
- Arc Elasticity of Demand
- Revenue Method
- Numerical Problems of Price Elasticity of Demand
- Factors Affecting Price Elasticity of Demand
- Importance of Elasticity of Demand
- Types of Elasticity of Demand > Income Elasticity
- Types of Elasticity of Demand > Cross Elasticity
Money and Banking
Supply
- Concept of Supply
- Distinction Between Supply and Stock
- Determinants of Supply
- Supply Schedule and Supply Curve
- Individual Supply Schedule and Supply Curve
- Market Supply Schedule and Supply Curve
- Law of Supply
- Time Period and Supply
- Exceptions to the Law of Supply
- Shifts in the Supply Curve
- Change in Supply> Extension and Contraction in Supply
- Change in Supply> Increase and Decrease in Supply
- Expansion of Supply and Increase in Supply
- Contraction of Supply and Decrease in Supply
- Elasticity of Supply
- Price Elasticity of Supply
- Categories (Degrees) of Elasticity of Supply
- Measurement of Elasticity of Supply > Percentage Method
- Measurement of Elasticity of Supply > Geometric or Point Method
- Determinants of Elasticity of Supply
Balance of Payments and Exchange Rate
Market Mechanism
- Basic Concepts of Equilibrium and Equilibrium Price
- Equilibrium Price and Quantity in a Competitive Market
- Effects of Changes (Shifts) in Demand on Equilibrium Price and Equilibrium Quantity
- Effects of Changes (Shifts) in Supply on Equilibrium Price and Equilibrium Quantity
- Effects of Simultaneous Changes (Shifts) in Demand and Supply
- Some Special Cases of Equilibrium
- Applications of Tools of Demand and Supply Price Control
- Mаximum Price Legislation or Price Ceiling and Rationing
- Minimum Price Legislation or Floor Price
Public Finance
Concepts of Production
- Basics of Production Theory
- Concept of Product
- Factors of Production
- Production Function
- Types of Production Functions
- Variation of Output in the Short-Run Returns to a Factor
- Relationship between Average Product (AP) and Marginal Product (MP)
- Relationship between Total Product (TP) and Marginal Product (MP)
- Returns to a Factor - Laws of Returns to a Variable Factor
- Law of Variable Proportions
- Explanation of the Law of Variable Proportions
- Three Stages of Production
- Stages of Operation and the Decision to Produce
- Changes in Production
- Returns to a Factor or Law of Returns
- Variation of Output in the Long Run - Returns to Scale
- Comparison Between Laws of Returns and Returns to Scale
- Scale of Production
- Concept of Indivisibility
- Economies of Scale
- Diseconomies of Scale
- Comparison Between Laws of Returns and Returns to Scale
National Income
Cost and Revenue
- Cost of Production
- Theories of Costs: Traditional Theory of Costs/Short Run Cost Curves
- Cost Concepts > Total Costs
- Cost Concepts > Average Cost
- Cost Concepts > Marginal Cost
- Costs in Long Run Period
- Difference Between Short - Run & Long Run Costs
- Behaviour of Cost in the Short - Run
- Relationship between Average and Marginal Cost
- Long-Run Cost Curves
- Revenue Concepts
- Relation Between Total, Average and Marginal Revenue
- Revenue Curve under Perfect Competition
- Revenue Curve under Monopoly
- Revenue Curve under Imperfect Competition
- Relationship Between (Mutual Determination) AR, MR, and Elasticity of Demand
- Revenue Curve under Oligopoly
- Significance of Revenue Curve
Main Market Forms and Equilibrium of a Firm
- Concept of Market
- Market Structure
- Classification of Market Structure
- Perfect Competition
- Monopoly
- Monopolistic Competition
- Oligopoly
- Duopoly
- Bilateral Monopoly
- Concept of Monopsony
- Other Forms of Market
- Factors Determining Market / Extent of Market
- Demand Curves of Firms under Different Market Forms
- Comparison between different forms of market
CISCE: Class 12
Introduction
- Movement Along the Demand Curve:
When the quantity demanded of a product changes because its own price changes, and all other factors remain constant. - Shift of the Demand Curve:
When the demand for a product changes because of factors other than its price (like income, fashion, prices of related goods, population, etc.). The whole demand curve moves to a new position.
CISCE: Class 12
Introduction
When people buy more or less of something only because its price changes (and nothing else changes), it is called a change in quantity demanded.
CISCE: Class 12
Types of Change
- Expansion of Demand: If price goes down, people buy more units—this is called expansion.
- Contraction of Demand: If price goes up, people buy fewer units—this is contraction.
CISCE: Class 12
Real-Life Application
- If movie ticket prices drop from ₹300 to ₹200 and more people go to movies, that's movement along the curve (expansion).
- If income increases and people go to movies more often no matter the ticket price, that's a shift of the curve (shift right for increase).
CISCE: Class 12
Example Table
| Price of Apples (₹/kg) | Quantity Demanded (kg/week) |
|---|---|
| 100 | 1 |
| 90 | 2 |
When price falls from ₹100 to ₹90, demand rises from 1 kg to 2 kg—an expansion of demand.
| Price of Apples (₹/kg) | Quantity Demanded (kg/week) |
|---|---|
| 70 | 6 |
| 80 | 4 |
When price rises from ₹70 to ₹80, demand falls from 6 kg to 4 kg—a contraction of demand.
CISCE: Class 12
Key Point Summary
- Movement along the curve is always caused by a price change for that good itself.
- Shift of the curve is caused by factors other than price.
- Expansion and contraction = movement.
Increase and decrease = shift. - Always check what caused the change before deciding if it's a movement or shift.
CISCE: Class 12
Diagrammatic Explanation
- The downward movement from a higher point to a lower point on the curve is expansion (buying more at a lower price).
- The upward movement from a lower point to a higher point is contraction (buying less at a higher price).
CISCE: Class 12
Real-Life Application
Think of a local market sale: If mangoes become cheaper, customers buy more. If they get expensive, people buy less.
Key Point Summary
- Expansion: Price falls, and quantity demanded rises (down the demand curve).
- Contraction: Price rises, quantity demanded falls (up the demand curve).
- Movement along the demand curve shows changes in quantity demanded due to price, not because of other reasons like income or preferences.
Test Yourself
Related QuestionsVIEW ALL [13]
Match the following and select the correct option.
| Column A | Column B | ||
| (i) | Extention of demand | A. | Prices are expected to rise in future |
| (ii) | Decrease in demand | B. | Rise in price |
| (iii) | Contraction of demand | C. | Prices are expected to fall in future |
| (iv) | Increase in demand | D. | Fall in prices |
From the set of events/systems given in column A and the corresponding relevant fact given in column B, about China, choose the correct pair of statements:
| column A | column B |
| (1) Shift in the Demand Curve | (a) Increase in quantity demanded |
| (2) Movement along the demand curve | (b) Increase in price |
| (3) Shift in the Demand Curve | (c) Decrease in price |
| (4) Movement along the demand curve | (d) Snob effect |
