Day: January 14, 2022

Equilibrium in economics refers to a situation in which the forces determine the behavior of variables are in balance and therefore exert no pressure on these variables to change. In equilibrium the actions of all economic agents are mutually consistent. Read More …

Individual supply refers to the quantity of a given commodity that a producer is willing and able to sell at a given price over a specific time period. Market supply refers to horizontal summation of individuals producers/firms supply in the Read More …

Demand refers to the quantity of a commodity that consumers are willing and able to purchase at any given price over a given period of time. It is important to realize that demand is not the same thing as want, Read More …

These refer to the way in which different societies solve the three different basic economic problems which are: Which goods should be produced and in what quantities? How should various goods and services be produced? How should various goods and Read More …

A useful insight into the methodology applied in economics can be gained by distinguishing between positive and normative economics. This enables one to appreciate the limitations and scope of economics. Positive economics is concerned with what is, or how the Read More …

It is useful to study economics for the following reasons Economics provides the underlying principles of optimal resource allocation and thus enables individuals and firms to make economically rational decisions. Thus for example the preparation of budgets involves knowledge of Read More …