Economic theories and model

In the monopoly market, single seller enjoys all the favourable conditions, and decides market price in the absence of others. Whereas, in oligopoly market, there are more than two players enjoy all the available benefits and they collectively determine price of product. This is the difference between monopoly and oligopoly markets. Monopoly vs duopoly vs

In economics, the law of demand and supply is the most fundamental law helps to determine the prices of commodities. It is useful for both producers and consumers as it guide them when and how much to produce and how much to buy. This article would be easy guide in understanding the law of demand

Is it correct to say that “Country’s standard of living depends on it’s ability to produce goods and services?” if yes, then how does it results? Why do economists assert that a country’s standard of living depends on it’s ability to produce goods and services? What is the relationship between productive capabilities of nation and

Not all the time, market is left on the vagaries of sentiments of surplus seeking consumers and producers. If the volatility breaks the tolerance range, government has to step in to recorrect. As a last resort, government improves market outcomes. List of 10 basic principles of economics 1.People face trade offs2.The cost of something is

The ability of free market to recorrect its failures and maintain reasonable equilibrium in the absence of much interventions are called the idea of invisible hand proposed by Adam Smith. This is why, “Markets are usually a good way to organise economic activity”, is a basic principle of economics. List of 10 basic principles of

It is widely accepted that trade always fuels business activities, empowers consumers to desire more, generates more jobs, saving, and overall living standards. In other words, at both ends, trade can make everyone better off. List of 10 basic economics principles 1.People face trade offs.2.The cost of something is what you give up to get

Prices of commodity consumers want determine the demand of given commodity. Because, more the prices, lesser the demand due to no willingness or ability to pay the rising price to commodity. This is the reason why people responds to incentives in terms of discounts, cash back, extra quantity, voucher, tax reliefs, etc. List of 10

Someone well said that decisions in life are hardly black and white. It means that person, a rational being, know how to make best out of available opportunities while making critical choices. This is why rational people think at the margin. List of basic principles of economics Just look at the following list of the

“The cost of something is what you give up to get it” isn’t it? Don’t you loose opportunities to enjoy other things you like most? But, how do we calculate it? First of all, before to decode this, let’s understand actual cost and opportunities cost. List of ten basic principles of economics 1.People face trade