Price Ceiling and Price Floor | Definition, Example, Graph

A price ceiling can be defined as the price that has been set by the government below the equilibrium price and cannot be soared up above that. A price floor is said to exist when the price is set above the equilibrium price and is not allowed to fall. It is used by the government to prevent the prices from hitting a bottom low.

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Elasticity of Supply | Definition, Example, Types, Determinants

Elasticity of Supply is a measure of the degree of change in the quantity supplied of a product in response to a change in its price. According to Prof. Thomas, “The supply of a commodity is said to be elastic when as a result of a change in price, the supply changes sufficiently as a quick response. Contrarily, if there is no change or negligible change in supply or supply pays no response, it is elastic.”

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Cross Elasticity of Demand | Definition, Types, Example, Formula

The cross elasticity of demand can be defined as a measure of a proportionate change in the demand for goods as a result of a change in the price of related goods. According to Ferguson, the cross elasticity of demand is the proportional change in the quantity demanded of good X divided by the proportional change in the price of the related good Y.

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Importance of Price Elasticity of Demand | Economics

The concept of price elasticity of demand plays an important role in the functioning economies by having a significant contribution in the field of industry, trade, and commerce. Not only this, it helps organisations in analysing economic problems and making appropriate business decisions.

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Factors Affecting Price Elasticity of Demand | Economics

The price elasticity of demand of a product reflects the change in the quantity demanded as a result of a change in price.Factors Affecting Price Elasticity of Demand: Relative Need for the Product, Availability of Substitute Goods, Impact of Income, Time under Consideration, Perishability of the Product, Addiction.

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Types of Price Elasticity of Demand | Definition, Example, Figure

The extent of responsiveness of demand with change in the price does not remain the same under every situation. The demand for a product can be elastic or inelastic, depending on the rate of change in the demand with respect to change in price of a product. Based on the rate of change, the price elasticity of demand is grouped into five types.

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Elasticity of Demand | Definition, Types, Formula, Factors

In economics, the elasticity of demand is a degree of change in the quantity demanded of a product in response to its determinants, such as the price of the product, price of substitutes, and income of consumers. There are three types of elasticity of demand: 1. price, 2. Income, 3. Cross elasticity of demand

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What is Market Power? Definition, Measurement, Determinants

Market power define as the ability of an organisation to raise the market price of a good or service over marginal cost to achieve profits. It can also be defined as the degree of control an organisation has over the price and output of a product in the market. A firm with total market power is in a position to raise the prices without any loss of customers.

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Types of Market Structures | Definition, Characteristics

Market structure can be defined as a group of industries characterised by number of buyers and sellers in the market, level and type of competition, degree of differentiation in products and entry and exit of organisations from the market. The study of market structure helps organisations in understanding the functioning of different firms under different circumstances.

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Market Failure | Definition, Examples, Causes

In economics, Market failure occurs when there is an imbalance in the quantity of a product demanded and supplied, which leads to an inefficient allocation of resources. These failures can occur due to a variety of reasons, such as the existence of externalities, public goods and incomplete information.

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What is Revenue? Definition, Example, Types

Revenue is the total amount of money received by an organisation in return of the goods sold or services provided during a given time period. In other words, revenue of a firm refers to the amount received by the firm from the sale of a given quantity of a commodity in the market.

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What is Long Run Cost | Definition, Types, Curves

Long run cost refers to the time period in which all factors of production are variable. Long-run costs are incurred by a firm when production levels change over time. In the long run, the factors of production may be utilised in changing proportions to produce a higher level of output. In such a case, the firm may not only hire more workers, but also expand its plant size, or set up a new plant to produce the desired output.

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Economies of scale and Diseconomies of Scale | Examples, Types, Factors

Economies of scale refer, as a firm expands its production capacity, the efficiency of production also increases. It is able to draw more output per unit of input, leading to low average total costs. Diseconomies of scale refer to the disadvantages that arise due to the expansion of a firm’s capacity leading to a rise in the average cost of production.

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What is Short Run Cost | Definition, Types, Curves

A short-run period refers to a certain period of time where at least one input is fixed while others are variable. In the short-run period, an organisation cannot change the fixed factors of production, such as capital, factory buildings, plant and equipment, etc. However, the variable costs, such as raw material, employee wages, etc., change with the level of output.

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10 Types of Costs | Economics [Infographic]

While computing the total cost of production, there are several types of costs that an organisation needs to consider apart from those involved in the procurement of raw material, labour and capital. 10 Types of Costs - Opportunity, Explicit, Implicit, Accounting, Economic, Business, Full, Fixed, Variable, Incremental.

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Types of Production Functions | Economics

There are different types of production functions that can be classified according to the degree of substitution of one input by the other. 3 Types of Production Functions: Cobb Douglas, Leontief and constant elasticity substitution (CES) production function.

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Criteria for Good Demand Forecasting

Demand forecasting can be effective if the predicted demand is equal to the actual demand. The effectiveness of demand forecasting depends on the selection of an appropriate forecasting technique. Each technique serves a specific purpose; thus an organisation should be careful while selecting a forecasting technique for a particular problem.

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Law of Diminishing Marginal Utility | Economics

The law of diminishing marginal utility states that as the quantity consumed of a commodity continues to increase, the utility obtained from each successive unit goes on diminishing, assuming that the consumption of all other commodities remains the same.

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Consumer Demand in Economics | Definition, Assumptions

Consumer demand analysis is a process of assessing consumer behaviour based on the satisfaction of wants and needs generated by a consumer from the consumption of various goods. The satisfaction that consumers gain out of the consumption of a commodity or service is called utility.

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Utility in Economics | Meaning, Definition, Characteristics, Types

The level of satisfaction derived by a consumer after consuming a good or service is called utility. In economics, utility can be defined as a measure of consumer satisfaction received on the consumption of a good or service. The concept of utility is used in neo classical Economics to explain the operation of the law of demand.

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Movement and Shift In Supply Curve | Economics

Movement in the supply curve is when the commodity experience change in both the quantity supply and price. The shift in the supply curve is when, the price of the commodity remains constant, but there is a change in quantity supply due to some other factors.

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Supply Schedule | Definition, Example, [Individual & Market]

In economics, a Supply schedule is defined as a tabular representation of the law of supply. It represents the quantities of a product supplied by a supplier at different prices and time periods, keeping all other factors constant. There can be two types of supply schedules are Individual and Market supply schedule.

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Law of Supply | Definition, Example, Exceptions, Assumptions

The law of supply states that the relationship between price and supply of a product. According to the law of supply, the quantity supplied increases with a rise in the price of a product and vice versa while other factors are constant. The other factors may include customer preferences, size of the market, size of population, etc.

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Determinants of Supply | Definition with [Infographic]

Supply does not remain constant all the time in the market. There are many factors that influence the supply of a product. Generally, the supply of a product depends on its price and cost of production. Thus, it can be said that supply is the function of price and cost of production. These factors that influence the supply are called the determinants of supply.

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What is Supply? Definition, Type, Example

Supply is an economic principle can be defined as the quantity of a product that a seller is willing to offer in the market at a particular price within specific time. The supply of a product is influenced by various determinants, such as price, cost of production, government policies, and technology.

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Movement and Shift In Demand Curve | Economics

Movement in the demand curve is when the commodity experience change in both the quantity demanded and price. The shift in the demand curve is when, the price of the commodity remains constant, but there is a change in quantity demanded due to some other factors.

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Demand Curve | Definition, Type, Example

In economics, a demand curve is a graphical presentation of the demand schedule. It is obtained by plotting a demand schedule. The demand schedule can be converted into a demand curve by graphically plotting the different combinations of price and quantity demanded of a product.

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Demand Function in Economics | Two Type

Demand function represents the relationship between the quantity demanded for a commodity (dependent variable) and the price of the commodity (independent variable). There are mainly two types of demand functions: Linear and Non Linear function.

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What is Demand? Definition, Type, Example

In economics, Demand is a relationship between various possible prices of a product and the quantities purchased by the buyer at each price. In this relationship, price is an independent variable and the quantity demanded is the dependent variable.

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Business Cycle | Definition, Phases, Example

The Business Cycle, also known as the economic cycle or trade cycle, is the fluctuations in economic activities or rise and fall movement of gross domestic product (GDP) around its long-term growth trend. Business Cycle can also help you make better financial decisions.

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Personality in Organisational Behavior | Determinants, Nature, Definition

The word personality is derived from a Greek word “persona” which means “to speak through.” Personality is the combination of characteristics or qualities that forms a person’s unique identity. It signifies the role which a person plays in public. Every individual has a unique, personal and major determinant of his behavior that defines his/her personality.

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CASE Tools | Software Engineering

A CASE (Computer Aided Software Engineering) tools mean any tool used to automate some activity associated with software development. Some of these CASE tools assist in phase-related tasks such as specification, structured analysis, design, coding, testing etc.

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Cohesion and Coupling | Software Engineering

A good software design implies clean decomposition of the problem into modules and the neat arrangement of these modules in a hierarchy. The primary characteristics of neat module decomposition are low coupling and high cohesion. Cohesion is a measure of functional strength of a module.

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Analysis Modeling | Software Engineering

At a technical level, software engineering begins with a series of modeling tasks that lead to a complete specification of requirements and a comprehensive design representation for the software to be built. The first technical representation of a system which is the analysis model, actually a set of models. There have been many methods proposed for analysis modeling.

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Requirements Elicitation | Software Engineering

The requirements elicitation and specification phase starts when the feasibility study phase is completed and the project is found to be technically and feasible. The goal of the requirements analysis and specification phase is to understand client requirements and to systematically organize these requirements in a specification document.

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Evolutionary Model | Software Engineering

Evolutionary model is also referred to as the successive versions model and sometimes as the incremental model. In Evolutionary model, the software requirement is first broken down into several modules (or functional units) that can be incrementally constructed and delivered.

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Iterative Waterfall Model | Software Engineering

In Iterative waterfall model, the feedback paths are provided from every phase to its preceding phase. In practice, it is not possible to strictly follow the classical waterfall model for software development work. In this context, we can view the iterative waterfall model as making necessary changes to the classical waterfall model so that it becomes applicable to practical software development projects.

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Software Development Life Cycle (SDLC)

A software development life cycle (SDLC) is a series of identifiable stages that a software product undergoes during its lifetime. A software development life cycle model (also called process model) is a descriptive and diagrammatic representation of the software life cycle.

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