Topics
Indian Economy on the Eve of Independence
- Introduction to Indian Economy on the Eve of Independence
- Low Level of Economic Development Under the Colonial Rule
- Agricultural Sector in India
- Industrial Sector
- Foreign Trade of India
- Demographic Condition
- Occupational Structure
- Infrastructure
Introductory Macroeconomics
Introduction
- A Simple Economy
- Central Problems of an Economy
- Concepts of Production Possibility Frontier
- Organisation of Economic Activities
- Positive and Normative Economics
- Microeconomics and Macroeconomics
Introduction
- How Macroeconomics Differs from Microeconomics
- Representative Goods and Sectors
- Macroeconomic Agents and Government Role
- Emergence of Macroeconomics
- Context of the Present Book of Macroeconomics
Theory of Consumer Behaviour
- Consumer Behaviour: The Problem of Choice
- Basic Concepts of Microeconomics > Utility
- Cardinal Approach (Utility Analysis)
- Derivation of Demand Curve in the Case of a Single Commodity
- Ordinal Utility Analysis/Indifference Curve Analysis
National Income Accounting
- Meaning of Economic Wealth and Final Goods
- Stocks, Flows, and Depreciation
- Capital Formation, Trade-off & Circular Flow of Income
- Circular Flow of Income and Methods of Calculating National Income
- Output Method/Product Method
- Expenditure Method
- Income Method
- Factor Cost, Basic Prices and Market Prices
- Some Macroeconomic Identities
- National Disposable Income
- Private Income
- National Income Aggregates
- Real GDP and Nominal GDP
- GDP and Welfare
Indian Economy 1950-1990
Indian Economic Development
Money and Banking
- Concept of Money
- Functions of Money
- Demand for Money and Supply of Money
- Money Creation by Banking System
- Limits to Credit Creation and Money Multiplier
- Policy Tools To Control Money Supply
- Demand and Supply for Money : A Detailed Discussion
- The Transaction Motive
- The Speculative Motive
- Various Measures of Supply of Money
- Legal Definitions: Narrow and Broad Money
- Demonetisation
Production and Costs
- Production Function
- Basics of Production Theory
- Variation of Output in the Short-Run Returns to a Factor
- Relation Between Total, Average and Marginal Product
- Law of Variable Proportions
- Average and Marginal Physical Products
- Changes in Production
- Cost - Fixed Cost
- Cost -variable Cost
- Behaviour of Cost in the Short - Run
- Relationship Between Average Variable Cost and Average Total Cost and Marginal Cost
- Concept of Opportunity Cost
- Marginal Revenue
- Producer's Equilibrium
- Law of Supply
- Market Supply Schedule
- Distinguish between Stock and Supply
- Determinants of Supply
- Movements Along and Shifts in Supply Curve
- Measurement of Elasticity of Supply
- Methods of Measurement of National Income
- Cost Concepts > Marginal Cost
- The Law of Diminishing Marginal Product
- Shapes of Product Curves
- Costs in Long Run Period
- Returns to Scale
Liberalisation, Privatisation and Globalisation : An Appraisal
Introductory Microeconomics
The Theory of the Firm Under Perfect Competition
- Concept of Market
- Market Equilibrium
- Determination of Market Equilibrium
- Effect of Simultaneous change in Demand and Supply on Equilibrium Price
- Perfect Competition
- Imperfect Competition
- Classification of Market Structure
- Oligopoly
- Market Forms - Perfect Oligopoly
- Market Forms - Imperfect Oligopoly
- Equilibrium Price
- Applications of Tools of Demand and Supply Price Control
- Price Ceiling
- Price Floor
- Revenue Concepts
- Profit Maximisation Objective
- Determinants of a Firm’s Supply Curve
- Market Supply Schedule
- Price Elasticity of Supply
Human Capital Formation in India
Determination of Income and Employment
- Aggregate Demand and Its Components
- Consumption
- Consumption and Saving Propensities
- Investment
- Determination of Income in Two-sector Model
- Determination of Equilibrium Income in the Short Run
- Macroeconomic Equilibrium with Price Level Fixed
- Effect of an Autonomous Change in Aggregate Demand on Income and Output
- The Multiplier Mechanism
- Paradox of Thrift
- Equilibrium Output and Employment
Market Equilibrium
- Simple Monopoly in the Commodity Market
- Other Non - Perfectly Competitive Markets
Government Budget and the Economy
Rural Development
Employment: Growth, Informalisation and Other Issues
- The Nature and Importance of Work in Society
- Workers and Employment
- Participation of People in Employment
- Self-employed and Hired Workers
- Employment in Firms, Factories and Offices
- Growth and Changing Structure of Employment
- Informalisation of Indian Workforce
- Concept of Unemployment
- Government and Employment Generation
Open Economy Macroeconomics
- Open Economy and Its Linkages
- Concept of Balance of Payments
- Current Account
- Capital Account
- Balance of Payments Surplus and Deficit
- Foreign Exchange Market
- Foreign Exchange Rate
- Determination of the Exchange Rate
- Merits and Demerits of Flexible and Fixed Exchange Rate Systems
- Managed Floating Exchange Rate System
Environment and Sustainable Development
Comparative Development Experiences of India and Its Neighbours
- Comparative Development Strategies: India, China, and Pakistan
- Developmental Path - a Snapshot View
- Demographic Indicators
- Gross Domestic Product and Sectors
- Indicators of Human Development
- Development Strategies - an Appraisal
- Price Elasticity of Supply
- Definition: Elasticity of Supply
- Meaning of Elasticity of Supply
- Formula: Elasticity of Supply
- Types of Supply Elasticity
- Distinction Between Contraction of Supply and Decrease in Supply
- Real-Life Application
- Key Point Summary
CISCE: Class 12
Price Elasticity of Supply
Law of Supply: If the price of a commodity increases, the supply usually goes up. But how much does supply change? That’s where elasticity of supply helps.
CISCE: Class 12
Definition: Elasticity of Supply
- "Elasticity of supply is defined as the percentage change in quantity supplied by percentage change in price." – Prof. Bilas
- "Elasticity of supply is the ratio of percentage change in 'quantity supplied over the percentage change in price." – Lipsey
CISCE: Class 12
Meaning of Elasticity of Supply
- Price elasticity of supply measures how much the quantity supplied changes when the price changes.
- It tells us if supply is sensitive or not to price changes.
- It shows the ratio between percentage change in supply and percentage change in price, not just the actual amounts.
CISCE: Class 12
Formula: Elasticity of Supply
\[e_s=\frac{\text{Proportionate Change in Quantity Supplied}}{\text{Proportionate Change in Price}}\]
Where:
- es: Elasticity of supply
- Δq: Change in quantity supplied
- ΔP: Change in price
- q: Original quantity supplied
- p: Original price
CISCE: Class 12
Types of Supply Elasticity
| Type | Description | What it Means |
|---|---|---|
| Elastic Supply | Supply changes more than price | Small price rise, bigger supply increase |
| Inelastic Supply | Supply changes less than price | Price rises, supply barely increases |
CISCE: Class 12
Distinction Between Contraction of Supply and Decrease in Supply
| Contraction of Supply | Decrease in Supply |
|---|---|
| Description | Quantity supplied falls at lower price |
| Reason | Due to fall in price of commodity |
| Supply Curve | Downward movement along same supply curve |
CISCE: Class 12
Real-Life Application
- Imagine a shopkeeper: If prices of sweets rise by 10%, and he brings out 20% more sweets to sell, his supply is highly elastic!
- If he only brings 3% more, his supply is inelastic.
CISCE: Class 12
Key Point Summary
- Price elasticity of supply shows how responsive supply is to price changes.
- “Contraction” happens when price falls, and supply moves down along the curve.
- “Decrease” happens due to other factors; the whole curve shifts left.
