Variable costs are costs that change in proportion with how much a company produces. Fixed costs do not change with quantity produced. In this article I will describe fixed costs and variable costs using examples and some related questions.
ReadElasticity of demand refers to the change in quantity demanded with a change in some metric such as price or income. In this article I will describe what is meant by price elasticity of demand, income elasticity of demand and cross price elasticity of demand. I will describe these terms along with examples and some related questions.
ReadProducer and consumer surplus are used by economists to measure the total wealth of a society in a free market. In a free market trade is governed only by the principles of supply and demand. In this article I will describe what is meant by producer surplus, consumer surplus, total surplus, price ceiling and price floor. I will describe these terms along with examples and some related questions.
ReadThe principles of supply and demand form the base of modern microeconomics. In this article I will describe the principles of supply and demand along with examples and some related questions.
ReadAccording to Wikipedia: Economics is the social science that studies how people interact with value; in particular, the production, distribution, and consumption of goods and services. In this article I will discuss some daily life applications of Economics.
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