DATA RESPONSE IN ECONOMICS

ELASTICITY OF DEMAND Elasticity is a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants. Economists usually refer to the coefficient of elasticity as the price elasticity of demand, a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in the quantity demanded divided by the percentage change in price. Other coefficients of elasticity may relate to 'income elasticity of demand', 'cross-elasticity of demand', What Is Price Elasticity of Demand? Price elasticity of demand is an economic measure of the change in the quantity demanded or purchased of a product in relation to its price change. Expressed mathematically, it is: Price Elasticity of Demand = % Change in Quantity Demanded / % Change in  price. There are different types of price elasticity of demand i.e. 1) perfectly elastic demand, 2) perfectly inelastic demand, 3) relatively elastic d

PRODUCTION Production is the process of making or manufacturing goods and products from raw materials or components. In other words, production takes inputs and uses them to create an output which is fit for consumption. In other words, production is the creation of utilities. Production may be defined as the transformation of raw materials to finished goods and the distribution and provision of goods and services in other to satisfy human wants.   . Concept of Total, Marginal and Average Productivity   • TOTAL PRODUCT : It is the entire quantity of a commodity produced with a given quantity of productive resources. i.e. TP = AP × Q • AVERAGE PRODUCT : This is the total product divided by the amount of variable input used to produce the total output. i.e. AP = TP /Q • MARGINAL PRODUCT : This is the additional unit of the variable input. .e MP = Change in TP/ Change in Q The law of diminishing returns   states that as more of the variable factor is added to other factors wh

Production possibility curve   Production possibility curve is also called production frontier, transformation curve, production possibility boundary. It is described as the graph or curve that shows the combination of goods that can be produced in any economy given the available resources and the prevailing state of technology. It is further explained as the choice of commodity that could be produced and the opportunity cost of reallocation between these resourses        A  production–possibility frontier  ( PPF)  or  production possibility curve  ( PPC ) is a curve which shows various combinations of the amounts of two goods which can be produced within the given resources and technological graphical representation showing all the possible options of output for two products that can be produced using all factors of production, where the given resources are fully and efficiently utilized per unit time. A PPF illustrates several economic concepts, such as allocate,efficiency , econom