Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Budget line and its economic interpretation
The indifference curve shows us consumer preferences but it does not show us the situation in the market place. Here the consumer is constrained by income and by the prices of X and Y. They can both be shown by a budget line. Suppose that product X costs K£2 per unit and product Y K£1 per unit and that the consumer's income is K£10.
A budget line shows all the combinations of two products which can be purchased with a given level of income. The slope of the line shows the relative prices of the two commodities.
If the consumer is inside the budget line, e.g. at point E he is consuming les than the income. Thus he can consume more of X or more of Y or more of both. If he is on the budget line e.g. at point C he is spending the full budget. He is said to be consuming to budget constraint. To consume more of X e.g. moving from C to D, he must consume less of Y and vice versa. For a given budget and given price, he cannot be at a point off the budget line to the right, e.g. at point F.
Q. Example on Relationship between marginal and average cost? This relationship between marginal and average cost can easily be recalled with the aid of Fig. below. It can be s
Increase in demand SS is the supply curve and D 1 D 1 the initial demand curve shifts to the right, to position D 2 D 2 . P 1 is the initial equilibrium price and q 1
Question 1: (a) Describe how asymmetric information influences the price system and resource allocation. Provide examples to support your answer. (b) Managerial decision-ma
Limitations of Open Market OperationsLimitations For their success central bank open market operation assume that commercial banks in the country will expand their credit port
For the pair of supply and demand equations,where x represents the quantity demanded in units of a thousand and p the unit price in dollars, find the equilibrium quantity and the e
Q. Show the Properties of isoquants? Isoquants slope downwards to the right: It means that, in order to keep output constant; when amount of one factor is increased then the
Market research operations to obtain reliable and relevant information about the trends in market. A data analysing and processing system to estimate as well as evaluate the s
Explaination of the Marris Model
what are the objectives of a firm
Theory of Demand of managerial economics According to Siegelman andSpencer "A business firm is an economic organisation that transforms productivity sources into goods which
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd