Scribd
Upload
12 views1 page

Class10 Microeconomics Fixed

Uploaded by

IDK
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
12 views1 page

Class10 Microeconomics Fixed

Uploaded by

IDK
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Basics of Microeconomics

## Basics of Microeconomics

**Key Concepts:**

- Demand and Supply: Relationship between the price of a good and its quantity.

- Elasticity: Responsiveness of demand or supply to changes in price or income.

- Opportunity Cost: The next best alternative foregone.

**Formulas:**

1. Price Elasticity of Demand: Ed = (% change in Quantity Demanded) / (% change in Price)

2. Total Revenue: TR = Price * Quantity

**Example:**

If the price of a product increases by 10% and its demand decreases by 20%, what is the elasticity?

Ed = -20% / 10% = -2 (Elastic demand)

**Applications:**

- Pricing Strategies: Understanding demand helps set competitive prices.

- Resource Allocation: Efficient use of resources in production.

**Mnemonic:**

For the laws of demand: 'Higher Price, Lower Desire.' (As price increases, demand falls).

You might also like