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 ..

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.

How does Excess demand cause demand-pull inflation?

When aggregate demand for goods and services exceeds aggregate supply of output which is produced by fully employing the given resources of an economy, excess demand is said to occur.

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.

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.

What are the five types of elasticity’s of demand?

The degree of responsiveness of quantity demanded of a commodity to the change in price is called elasticity of demand. price elasticity of demand is popularly called elasticity of demand.

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.

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