Economics

Consumer Behavior

Consumer behavior is a field of study in economics which tries to explain consumer choices and their decisions in the context of limited income and the perceived benefit they derive from various goods and services they purchase.

Budget Line

Budget line (also known as budget constraint) is a schedule or a curve that shows a series of various combinations of two products that can be purchased while the income and product prices remain constant.

Diseconomies of Scale

Diseconomies of scale are disadvantages that result from large scale production or provision of services by a single firm. Diseconomies are the result of factors such as coordination difficulties, duplication of job positions, etc.

Barriers to Entry

In economics, the term barriers to entry refers to obstacles that make it difficult for new firms to enter into a given market or industry.

Price Ceiling

Price ceiling (also known as price cap) is an upper limit imposed by government or another statutory body on the price of a product or a service. A price ceiling legally prohibit sellers from charging a price higher than the upper limit.

Natural Monopoly

Natural monopoly is a monopoly that exists as a result of a market situation in which a single monopolistic firm can supply a particular product or service to the entire market at a lower unit cost than what could be achieved by a number of competing firms.

Market Equilibrium

Market equilibrium is the state of product or service market at which the intentions of producers and consumers, regarding the quantity and price of the product or service, match.

Supply Curve

Supply curve is a graphical representation of the direct relationship between the price of a product or service, and its quantity that producers are willing and able to supply at a given price within a specific time period, ceteris paribus.

Market Demand

Market demand is a series of various quantities of a product or service that consumers in a given market are able and willing to purchase collectively at each of a series of potential prices per unit of the product or service, ceterus paribus.

Demand Curve

Demand curve is a graphical representation of the relationship between the price of a product or service and its quantity that consumers are able and willing to purchase at a given price within a given time period, ceteris paribus.