Utility Analysis: Cardinal Utility
The Basics
Utility is the satisfaction a person gets from using a good or service. A hungry person eating food gets utility from it.
Sign up free for the full concept, practice MCQs and PYQsIndian Economy · Topic 2 of 20
Demand, Supply and Markets
Consumer theory, demand, supply, elasticity and market equilibrium
Demand Curve and Law of Demand
The Basics
The law of demand links price and quantity demanded. When price rises, people buy less. When price falls, people buy more. Price and quantity move in opposite directions. This is called an inverse relationship.
Sign up free for the full concept, practice MCQs and PYQsIndifference Curve Analysis and Ordinal Utility
The Basics
An indifference curve is a curve on a graph.
Sign up free for the full concept, practice MCQs and PYQsConsumer Budget Constraint and Equilibrium
The Basics
A budget line shows all goods a buyer can afford.
Sign up free for the full concept, practice MCQs and PYQsNormal, Inferior Goods, Substitutes and Complements
The Basics
Goods are grouped by how their demand reacts to two things. One is a change in income. The other is a change in a related good's price. This helps predict demand for linked goods too.
Sign up free for the full concept, practice MCQs and PYQsShifts vs Movements in Demand Curve
The Basics
A demand curve shows price and quantity wanted together.
Sign up free for the full concept, practice MCQs and PYQsMarket Demand and Price Elasticity of Demand
The Basics
Market demand adds up what all buyers want at each price.
Sign up free for the full concept, practice MCQs and PYQsSupply Curve and Law of Supply
The Basics
The law of supply says higher price makes firms supply more.
Sign up free for the full concept, practice MCQs and PYQsPrice Elasticity of Supply
The Basics
Price elasticity of supply shows how much supply changes when price changes.
Sign up free for the full concept, practice MCQs and PYQsMarket Equilibrium: Demand-Supply Interaction
The Basics
Market equilibrium is the price where demand equals supply. At this price, there is no shortage. There is no surplus. So the price does not change.
Sign up free for the full concept, practice MCQs and PYQsEffects of Demand and Supply Shifts on Equilibrium
The Basics
Equilibrium is the point where demand equals supply.
Sign up free for the full concept, practice MCQs and PYQsPrice Ceiling and Price Floor
The Basics
A price ceiling is a top limit. Government sets it below the market price.
Sign up free for the full concept, practice MCQs and PYQsMarkets: Meaning, Types and Market Structures Overview
The Basics
A market is not just a place to buy things. It is any set-up where buyers and sellers meet and agree on a price. A village market, a stock exchange, and online shopping are all markets. What makes it a market is the exchange and the price, not the location.
Sign up free for the full concept, practice MCQs and PYQsConsumer Rights and the Consumer Movement in India
The Basics
Consumer rights protect buyers from unfair trade, defective goods and poor service.
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