CONCEPT OF DEMAND The concept of demand was given by Alfred Marshall in 1890s in his book “Principles of Economics”. According to him, the demand can be represented by following words: 1. Desire 2. Willingness 3. Ability to pay for the commodity 4. Price of the commodity 5. TimeLaw of Demand The law of...
Jayati Ghosh Here’s what we do know: the Indian economy is in a deep funk, in a downward spiral of falling employment, consumption, and investment, and rapidly decelerating GDP growth. The problem, evident for several years now, has been created by a collapse in consumer demand,...
Article Shared by In this article we will discuss about the elasticity of substitution in a firm. Let us suppose that the firm’s production function is Q = f(L, K) [(8.122)] The convexity property of the isoquants (IQs) expresses the principle of diminishing marginal rate of technical substitution (MRTS)...
Article Shared by According to Prof. Harvey Leibenstein the overpopulated and underdeveloped countries are characterized by the vicious circle of poverty. They have low per capita income. His ‘theory of critical minimum effort’ is an attempt to provide a solution to this economic problem. According to him, critical...
Article Shared by The Envelope theorem is explained in terms of Shepherd’s Lemma. In this case, we can apply a version of the envelope theorem. Such theorem is appropriate for following case: Envelope theorem is a general parameterized constrained maximization problem of the form Such function is explained as...
Article Shared by The below mentioned article provides an overview on the Solow’s model of growth. Introduction: Prof. Robert M. Solow made his model an alternative to Harrod-Domar model of growth. It ensures steady growth in the long run period without any pitfalls. Prof. Solow assumed that Harrod-Domar’s model...
Direction: Read the passage given below and answer the questions that follow it:Suppose that for a particular economy for some time period, investment was equal to 100, gov-ernment expenditure was equal to 75t, net taxes were fixed at 100 and consumption (C) was given by...
Prabhat Patnaik Jammu and Kashmir was the first state in the country to introduce land reforms. There were two components of J&K’s land reforms. First, the system of absentee landlordism,that had prevailed during the Maharaja’s time was completely done away with. The land of the absentee...
Jayati Ghosh Suddenly, it seems like everything is shrinking in India: our capacity for tolerance and diversity, the space for democratic expression and dissent – and now, economic growth. The warning signs have reached a point where they cannot be ignored any longer and more people, including...