What's it: A cartel is a formal agreement between several parties to increase economic benefits. It can appear on both the market demand and supply
Microeconomics
Cournot Model: Concept, Assumption, Solution, and Criticism
What's it: A Cournot model is one of the economic models to explain the oligopoly market. This model assumes that the firm independently decides the
Economies of Scope: Meaning, Formula, and How to Calculate
What's it: Economies of scope is a reduction in the unit cost of production when companies produce two or more products using the same production
Advertisement
Perfect Competition: Characteristics, and Implications
What's it: Perfect competition is a theoretical market structure concept with many companies producing identical goods or services. In other
What is the difference between a change in demand and a change in quantity demanded?
The difference between a change in demand and a change in quantity demanded lies in the determining factor. Economists use the first term to describe
Market Equilibrium: Meaning, How It Works
Market equilibrium occurs when the quantity demanded is equal to the quantity supplied. In a curve, it represents the point of intersection between
Advertisement
What is Labor in Economics
What's it: As a factor of production, labor refers to the workers' efforts (physical and mental) used in the production process. It connotes what
Scarcity in Economics: Its Relation to Resources, Needs, and Wants
What's it: Scarcity is a finite state, so it cannot fulfill something. In the introduction to economics, scarcity represents a condition in which
Elastic Demand: Meaning, How to Calculate It
Elastic demand means the quantity demanded is responsive to price changes. When prices rise by 5%, according to the law of demand, the quantity
Advertisement
Luxury Goods: Meaning and Its Elasticity
Luxury goods are types of goods whose demand is higher than the increase in consumer income. Consumers ask for more when their income
Inferior Goods: Meaning, Its Price Elasticity
Inferior goods are groups of goods whose demand falls when consumer income rises. And, in economics, the demand for goods has a negative income
Unitary Elastic of Demand: Meaning and Explanation
Unitary elasticity of demand is a situation in which the price change affects the quantity demanded at an equivalent percentage. For example, when the
Advertisement
Normal Goods: Meaning, Elasticity
Normal goods are groups of products whose demand increases when consumer incomes rise. Conversely, when consumer incomes fall, demand for them also
Income elasticity of demand: Meaning, Formula, How to Calculate
How responsive changes in income affect demand is income elasticity (income elasticity of demand). Income is one of the determinants of demand for a
Excess Supply: Meaning, How to Calculate, Causes, Impacts
Excess supply occurs when the quantity supplied is higher than the quantity demanded. In this situation, price is above the equilibrium price, and,
Advertisement
Market Demand: Definition, How to Calculate, Determinants
What's it: Market demand is the sum of individual demand in the market at a given price. Economists define demand as our willingness and ability