% change in demand / % change in prices

Responsiveness change in quantity demand due to change in price

Yess

Consumer is the person who consumes the final good for satisying his needs.

slope of demand curve is always negative because of the inverse relation between price and the quantity demanded??

Input price increase profit margins and supply decrease . Due to decrease in supply eq. Price will increase and eq. Quantity will decrease

Prices of commodity and income of consumer

Centrally planned economy

Planned economy

Role of the government budget infighting deflationary and inflationary situations:
During the deflationary situation, the government can take the following steps:
1. Deficit financing  or borrowing by the government from the Central Bank against treasury bills. The Central Bank purchases treasury bills for cash, and the government uses these funds to finance the deficit. It increases the flow of money circulation in the economy. Therefore, there is an increase in demand for goods which leads to a rise in the general price level, while other things remain constant.
2. The tax burden is decreased  to adjust the deficient demand and thereby the purchasing power of the people will increase.
3. Increase in public expenditure  on infrastructural development improves the production efficiency of industries and increases employment opportunities and it encourages private enterprises by initialising state-owned financial and banking institutions to provide cheap credits. The aggregate demand increases with an increase in public expenditure.
During the inflationary situation, the government can take fiscal measures to reduce excess demand as follows:
i. Increase in taxes:  The government levies new taxes and enhances the rate of prevailing ones. It will reduce the disposable income of people, and therefore, the aggregate demand is reduced.
ii. Surplus budget policy : The government’s expenditure should remain less than its income to control the excess demand.
iii. A decrease in public expenditure  leads to a fall in aggregate demand. This, in turn, reduces the price level of goods in the market

Because the deposits in the bank account can be withdrawn on demand, these deposits are called demand deposits.

Fiat money refers to that money which is legally tender by the govt. authority . Fiduciary money is based on mutual trust and it is not compulsory to accept it like cheque

Yes

The term ‘equilibrium’ is frequently used in economic analysis. Equilibrium means a state of rest or a position of no change. It refers to a position of rest, which provides the maximum benefit or gain under a given situation. A consumer is said to be in equilibrium, when he does not intend to change his level of consumption, i.e., when he derives maximum satisfaction. . . . The Law of DMU applies in case of either one commodity or one use of a commodity. However, in real life, a consumer normally consumes more than one commodity. In such a situation, ‘Law of Equi-Marginal Utility’ helps in optimum allocation of his income. . . . According to the law of Equi-marginal utility, a consumer gets maximum satisfaction, when ratios of MU of two commodities and their respective prices are equal and MU falls as consumption increases. It means, there are two necessary conditions to attain Consumer’s Equilibrium in case of Two Commodities

Domestic currency depreciates when there is a rise in foreign exchange rate. The foreign countries can now purchase more quantity of goods and services from the same amount of foreign currency from the domestic country. As a result, exports will rise and imports will fall.

What to produce...how to produce...for whom to produce...

Law of variable proportion states that as we increase the qty of only one input keeping other inputs fixed TP firstly increases at an increasing rate then at a negative rate and finally at a negative rate.

Keeping the other factor constant when we increse one additional variable factor then Tp increses at incresing rate,increses at decresing rate and falls in negative...

Elasticity on a straight line (linear) demand curve. Another method of measuring price elasticity of demand is geometric method which is used when elasticity is to be measured at different points on the straight line demand curve. This method involves the following steps as shown in the following Fig. 2.29.

(i) Straight line demand curve is first extended to both sides to join Y-axis at E and X-axis at D in Fig. 2.29.

Fig. 2.29

(ii)    Take mid-point of straight line demand curve (say, point B) which divides the demand curve into two equal portions — upper portion (say, BE) and lower portion (say, BD). Point A is located in the upper portion and point C in the lower portion.

(iii)    Elasticity at any point on straight line demand curve is worked out by dividing lower portion of the demand curve with upper portion of the demand curve. Thus:

 because B is the mid-point.
(Alternatively elasticity of demand on the mid-point of a straight line moving from left to right is 1 or unit elastic.)

The law of variable propotion states tht the more variable factors are applied on fixed factors thn TP increases wth incrrasing rate then decreases with decreasing rate nd then negatively...

It states that as more and morev variable factors are applied on fixed factor. TP increases at increasing rate intially , but eventually TP increases at decreasing rate

Production of a good....

Start with that part about which u know that l can do it easily

It refers to the quantity of product that we consume dd=ss

What will be write its implications for price ceiling?

Price ceiling:  Price ceiling means maximum price of a commodity that the seller can charge from the buyers the government fixes this price much below the equilibrium market price of a commodity. so that, it. becomes within the reach of the poorer sections of the society.
Price Floor:  It means the minimum price fixed by the government for a commodity in the market. It seems paradoxical.
(i) Each firm employs labour up to the point where the marginal revenue product of labour equals the wage rate.
(ii) With supply curve remaining unchanged when demand curve shifts rightward (leftward). the equilibrium quantity increases (decreases) and equilibrium price increases with fixed number of firms.
(iii) With demand curve remaining unchanged when supply curve shifts rightward (leftward), the equilibrium quantity increases (decreases) and equilibrium price decrease (increases) with fixed number of firm.

Under the monopolistic comp. Firm have full control over the price, firm is partially price maker or taker. thats it.......

It is national income

Compensation of employees+Rent & Royalty+Profit+Interest+Mixed income

According to this approach, the producer is in equilibrium when the Marginal Revenue (MR) is equal to the Marginal Cost (MC) and Marginal Cost curve cuts the Marginal Revenue curve from below. Two conditions under this approach are:
(i) MC = MR
(ii) MC curve should cut the MR curve from below.
MR is the addition to Total Revenue from the sale of one more unit of output and MC is the addition to Total Cost for increasing the production by one unit. The basic aim of every producer is to maximise the profit. For this, a firm compares its MR with its MC.
As long as the addition to revenue is greater than the addition to cost, it is profitable for a firm to continue producing more units of output.
In the above diagram, output is shown on the A-axis, revenue and cost on the 7-axis.
The Marginal curve, is ‘U’ shaped and p = MR= AR.
MC = MR at two points, R and K in the diagram but profits are maximised at point K, corresponding to OQ level of output. Between {{OQ}_{1}}, and OQ levels of output, MR exceeds MC. Therefore, firm will not stop at point R but will continue to take advantage of additional profit. Thus, equilibrium will be at point K where both the conditions are satisfied.
Two other situations may also exist:
(i) MR > MC At output level less than
OQ, MR > MC which implies that firm is earning profit on the last unit of output. The marginal profit provides an incentive to the firm to increase production and move towards OQ units of output. Therefore, when MR>MC, the firm increases output to maximise its profit.
(ii) MR < MC At output level more than
OQ, MR < MC which implies that firm is making a loss on its last unit of output. Hence, in order to maximise profit, a rational producer decreases output as long as MC > MR. Thus, the firm moves towards producing OQ units of output.

According to this approach, the producer is in equilibrium when the Marginal Revenue (MR) is equal to the Marginal Cost (MC) and Marginal Cost curve cuts the Marginal Revenue curve from below. Two conditions under this approach are:
(i) MC = MR
(ii) MC curve should cut the MR curve from below.
MR is the addition to Total Revenue from the sale of one more unit of output and MC is the addition to Total Cost for increasing the production by one unit. The basic aim of every producer is to maximise the profit. For this, a firm compares its MR with its MC.
As long as the addition to revenue is greater than the addition to cost, it is profitable for a firm to continue producing more units of output.
In the above diagram, output is shown on the A-axis, revenue and cost on the 7-axis.
The Marginal curve, is ‘U’ shaped and p = MR= AR.
MC = MR at two points, R and K in the diagram but profits are maximised at point K, corresponding to OQ level of output. Between {{OQ}_{1}}, and OQ levels of output, MR exceeds MC. Therefore, firm will not stop at point R but will continue to take advantage of additional profit. Thus, equilibrium will be at point K where both the conditions are satisfied.
Two other situations may also exist:
(i) MR > MC At output level less than
OQ, MR > MC which implies that firm is earning profit on the last unit of output. The marginal profit provides an incentive to the firm to increase production and move towards OQ units of output. Therefore, when MR>MC, the firm increases output to maximise its profit.
(ii) MR < MC At output level more than
OQ, MR < MC which implies that firm is making a loss on its last unit of output. Hence, in order to maximise profit, a rational producer decreases output as long as MC > MR. Thus, the firm moves towards producing OQ units of output.