DATA RESPONSE IN ECONOMICS

DEFINITION OF DEMAND  Demand can be defined as the quantity of a commodity (goods and services) that consumers are willing and able to buy at a given price and at a particular place and time. Demand is quite different from wants, need or desire. Effective Demand’ in economics must meet three conditions which are:  Ability to pay  Willingness to pay  Authority to buy a commodity  Demand must be related to price because to a great extent, price determines the quantity which consumers are willing to buy. LAW OF DEMAND  The law of demand states that, all things being equal (Ceteris Paribus), The higher the price, the lower the quantity of goods that will be demanded, or the lower the price, the higher the quantity of goods that will be demanded. This law is often regarded as the first law of demand and supply. It simply means that when the price of a commodity, like yam for instance, is high in the market, very few quantity of it will be demanded by the consumers and vice-versa. DEMAND

FIXED COST Fixed cost may be defined as the cost of a firm which do not vary or change with every change of output. For example once a firm has built its factory and all the required machinery have been installed, the fixed costs remain the same whether the firm is working in full capacity or not. In some form of production , fixed cost forms a very high cost of total cost , in other firms the fixed cost forms only a small proportion of total cost. Fixed costs are those cost  that do not change with output ,they will remain no matter the amount of the output full-stop fixed costs are also referred to as overhead cost or unavoidable costs for example which cost include cost of machinery land rent interest on loan depreciation charges etc. It can be expressed mathematically as.                   FC = TC - VC VARIABLE COST Variable costs are direct cost which change in the short run with the scale of production. If the volume of output is increased variable cost will increase full-stop va

MONOPOLY Monopoly is a market situation in which an individual or firm controls the total output or supply of a good or service which has no close substitutes. A monopolist is the only producer or seller of a particular commodity in the market. In real life, pure monopolists do not exist since there are hardly any goods or services that do not have substitutes. What are the Features of Monopolistic Markets 1. There is only one seller or a combination of firms under one management, but there are many buyers. The single seller has no rivals. 2. The monopolist has the ability to control either price or output. He cannot control both at the same time. He can raise price if demand for his commodity is inelastic. On the other hand, he could earn higher prices by curtailing his output. 3. Entry is restricted or barred in monopolistic markets. Other firms o/ producers are not allowed to enter the trade when they wish. 4. There is no perfect substitute for the products of the monopolist. His pr

WHAT IS NATIONAL INCOME ACCOUNTING ? National Income Accounting shows the main aggregate relating to National income and its component. The standard of the economic life of a country can be successfully measured through the National Income Accounting. Just as an individual enterpreneur keeps on account of its economic activities, it is the same way that various countries of the world calculate the total production of goods and services in a year, and this calculation give directions to economic progress of such countries.National Income Accounting can also be defined as the total income in form of wages, interest, profit and rent accuring to a nation from productive activities in a year. WHAT IS NATIONAL INCOME ? National Income may be defined as the monetary value of goods and services produced in a country in a given time period usually a year, account having been taking of the deductions to be made due to depreciation of the capital stock news in the production of these goods and

WHAT IS UTILITY? Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility. The economic utility of a good or service is important to understand, because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer's utility is impossible to measure and quantify. However, some economists believe that they can indirectly estimate what is the utility for an economic good or service by employing various models. utility may be defined as the support or satisfaction a person derives from the consumption of a commodity or service at any given time without any reference to its usefulness. Utility has a lot of influence on demand,however, it is not totally utility that influences demand and of course this declines the individual or processes that commodity.  CONCEPT OF TOTAL ,AVERAGE

DEFINITION OF SUPPLY Supply may be defined as the quantity of goods and services which sellers are willing and able to offer for sale at a particular price, and at a particular period of time. Supply does not mean the entire stock of a commodity in existence or the total quantity of that commodity produced but rather it means only the amount that is put into the market or offered for sale at a given price and at a particular period of time. This is referred to as Effective Supply LAW OF SUPPLY The law of supply states that, all things being equal, The higher the price, the higher the quantity of a commodity that will be supplied or the lower the price, the lower the quantity of the commodity that will be supplied’. This law is often regarded as the second law of demand and supply. This law explains that when the price of commodity is high in the market, more quantity of that commodity will be supplied by the producer, and vice-versa. SUPPLY SCHEDULE Supply schedule is a table of value

what is imperfect market? An imperfect market is a market situation in which the forces of demand and supply do not operate freely. there different degrees of regulation of the market forces full. in the real world, a perfect market does not exist in its pure form  (the same applies to a monopoly which shall be treated later) the rule is imperfect competition. but perfect competition and monopoly and theoretical concepts. Examples of imperfect market are: monopolistic competition or monopoly oligopolistic competition or oligopoly duopoly monopsony oligoposony imperfect market Monopolistic competition: this is a market where we have several producer or similar products. goods are not homo genius due to branding or use of trademarks or the services offered me define quality. Oligopoly: an oligopolistic market is the type of market in which there are few producers and sellers . the few firms in the industry sometimes agree on common production and pricing policies. this is called collud