What it's: A competitive market refers to a market characterized by intense competition in which no player has a dominant power. It is identified
Microeconomics
What is the difference between a movement and a shift in the demand curve?
The difference between a movement and a shift in the demand curve lies in the causing factors. The first occurs due to changes in its price. The
Reasons For a Downward-Sloping Demand Curve
A downward-sloping demand curve holds true in most of our day-to-day cases. It shows a negative relationship between price and quantity demanded. It
What Are the Five Exceptions to the Law of Demand?
While it applies to most things we encounter daily, there are exceptions to the law of demand. Two of them are Veblen goods and Giffen goods. They
Three Assumptions Underlying the Law of Demand
The three reasons or assumptions underlying the law of demand are the income effect, the substitution effect, and diminishing marginal utility. The
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What Are The Types of Demand?
This article will discuss the types of demand. What is a demand? Economists define it as the willingness and ability of consumers to buy goods at
What are the six non-price determinants of demand? Examples.
When we study demand theory, non-price determinants of demand refer to factors other than the price of the goods we study, where their changes can
Individual Demand: Definition, Its Curve, Determinants
What's it: Individual demand represents the quantity demanded by a person for a good at a given price level. Two conditions: he has the
Social Cost in Economics: Meaning, Components, Formulas, and Effects
What's it: Social cost is private cost plus external cost. Private cost is borne by individuals directly involved in economic transactions or
Free Rider: Meaning, Examples, Impacts and Possible Solutions
What's it: Free rider is someone who gets benefit from a product at no cost. It appears in the public good because people are free to benefit
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Excess Capacity: Meaning, Measure, Impacts, Affecting Factors
What's it: Excess capacity is where production capacity is not fully utilized to achieve the minimum efficient scale. In other words, the firm
Individual Supply: Meaning, Curve, Determinants
What's it: Individual supply refers to the number of goods a firm is willing and able to produce at a given price, ceteris paribus. It only
Arc Elasticity: Meaning, How to Calculate, Difference with Point Elasticity
What's it: Arc elasticity is a measure of elasticity based on two given points. Suppose you measure the own-price elasticity of demand. In that
First-Degree Price Discrimination: Examples, Prerequisites, Problems
What's it: First-degree price discrimination is a type of price discrimination in which producers charge each customer the highest price they are
Total Variable Cost: Meaning, Examples, Curve, Importance
What's it: Total variable cost is the sum of all variable costs. Suppose you have data on variable costs per unit. In that case, you can
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Auction: Meaning and Types
What's it: An auction is a selling method where prices have not yet been set and are determined through an open and competitive bidding process.