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Yogita Ingle 7 years ago
With the rise in foreign exchange rate in India, the demand for foreign currency increases. This rise in exchange rate implies depreciation in domestic currency. It encourages exports from a country and discourages imports from rest of the world.
Posted by Nisha Jaiswal 7 years ago
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Yogita Ingle 7 years ago
The law of variable proportion states that as we increase the quantity of only one input, keeping other inputs fixed, the total product increases at an increasing rate (convex shape) in the beginning, then increases at diminishing rate (concave shape) and after a level of output ultimately falls.
Angad Mehra 7 years ago
Posted by Harshit Taneja 7 years ago
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Yogita Ingle 7 years ago
Law of Diminishing Marginal Utility The law states that as more and more standard units of a commodity are continuously consumed, Marginal Utility derived from each successive units goes on diminishing. It is also called fundamental law of satisfaction
Angad Mehra 7 years ago
Posted by Rishika Goyal 7 years ago
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Yogita Ingle 7 years ago
A budget set refers to attainable bundles of a set of two goods, given the prices of goods and the income of the consumer.
Equation of the budget set is P1X1 + P2X2 < M.
where
X1 = Quantity of Good-1
X2 = Quantity of Good-2
P1 = Price of Good-1
P2 = Price of Good-2
A budget line shows various combinations of two goods which a consumer can purchase with the given income and the prices of the two goods, when the consumer spends the entire income.
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Indrajeet Arora 7 years ago
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