Tag Archives | demand

How to control deficient demand?

How to control deficient demand? To arrest deflation, attempts are made to raise the volume of aggregate effective demand. As the aggregate demand expenditure falls short of the aggregate supply of output, the prime step of fighting deflation is to ..

By |2011-06-20T07:25:25+00:00June 20, 2011|Economics|Comments Off on How to control deficient demand?

Deficient demand! How does it produce depression in the economy?

Deficient demand! How does it produce depression in the economy? Deficient demand refers to the situation when aggregate demand for goods and services falls short of aggregate supply of output which is produced by fully employing the given resources of the economy.

By |2011-06-18T15:22:24+00:00June 18, 2011|Economics|Comments Off on Deficient demand! How does it produce depression in the economy?

The supply and demand theory of interest explained

The supply and demand theory of interest explained. Capital is demanded by the investors because of its productivity. A firm or a producer demands capital as he wants to grow with production.

By |2011-06-17T17:05:38+00:00June 17, 2011|Economics|Comments Off on The supply and demand theory of interest explained

The demand and supply side of the modern theory of rent explained

The demand and supply side of the modern theory of rent explained. Modern theory of rent is an improvement or modification over the Ricardian theory of rent. Economists like Marshall, Mrs. Joan Robinson and Bounding contributed to the ideas of rent which is called modern theory of rent.

By |2011-06-17T15:59:14+00:00June 17, 2011|Economics|Comments Off on The demand and supply side of the modern theory of rent explained

9 factors that determines the elasticity of demand

9 most essential factors that determines the elasticity of demand are : 1. Nature of goods 2. Availability of substitutes 3. Alternative use 4. Possibility of postponing consumption 5. Proportion of income spent 6. Price-level 7. Force of habit 8. Durability of commodities and 9. Income level.

By |2011-05-30T02:55:48+00:00May 30, 2011|Economics|Comments Off on 9 factors that determines the elasticity of demand
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