Saturday, August 25, 2018

A glance of definition on economics basic topics in eaay language

Law of Supply:-

As the price of a good or service increases, the quantity of the supply of goods or services increases. Same if the price of a good or service decreases, the quantity of the supply of goods or services decreases.


Law of Demand:-

As the price of a good or service increases, the quantity of the supply of goods or services decreases. Same if the price of a good or service decreases, the quantity of the supply of goods or services increases.


Price Mechanism:-

The price of a good is increased when the supply of it is below its demand. And the price of a good is decreased when the supply of it exceeds its demand.


Elasticity:-

Elasticity shows that how the changes in product's demand and supply leads to the change in the producer's price or the consumer's income.


Production Possibility Curve (PPC) :-

PPC is a curve graph which shows the highest number of possible goods that an industry can produce if it only produces two products using all of its having resources efficiently. 

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