What Is Economics?

Law of supply Description

Economics is a social science concerned
with the production, distribution, and
consumption of goods and services. It
studies how individuals, businesses,
governments, and nations make choices
on allocating resources to satisfy their
wants and needs, trying to determine how
these groups should organize and
coordinate efforts to achieve maximum
output.
The law of supply is a fundamental principle
of economic theory which states that,
keeping other factors constant, an increase
in price results in an increase in quantity
supplied. In other words, there is a direct
relationship between price and quantity:
quantities respond in the same direction as
price changes.
So what are the determinants of supply?

Managerial Economics There are numerous factors that determine

supply, and there are a total of 6
Definition: Managerial economics is a determinants of supply, including:
stream of management studies which
emphasises solving business problems 1. Innovation of the technology
and decision-making by applying the
theories and principles of 2. The number of sellers in the market
microeconomics and macroeconomics. It
is a specialised stream dealing with the 3. Changes in expectations of the
organisation’s internal issues by using suppliers
various economic theories.
4. Changes in the price of a product or
service
Top 7 Steps involved Decision-Making
Process: This article throws light upon the
5. Changes in the price of related
top seven steps involved decision-making products
process. The steps are:
6. Changes in tax and subsidies
1. Identifying the Problem
2. Identifying Resources and Constraints 
3. Generating Alternative Solutions 
4. Evaluating Alternatives 
5. Selecting an Alternative 
6. Implementing the Decision 
7. Monitoring the Decision.
 Law of demand
Description
In microeconomics, the law of demand states
that, "conditional on all else being equal, as the
price of a good increases, quantity demanded
decreases; conversely, as the price of a good
decreases, quantity demanded increases"
7 Factors which Determine the Demand for
Goods
1. Tastes and Preferences of the Consumers.
The own price elasticity of demand is the
percentage change in the quantity demanded
of a good or service divided by the percentage
change in the price. ... This shows the
responsiveness of quantity supplied to a
change in price.
In economics, income elasticity of demand
measures the responsiveness of the quantity
demanded for a good or service to a change
in income. It is calculated as the ratio of the
percentage change in quantity demanded to
the percentage change in income.

1. 2. Incomes of the People. Cross elasticity of demand

Description
2. 3. Changes in the Prices of the Related
Goods. In economics, the cross elasticity of demand or
cross-price elasticity of demand measures the
3. 4. The Number of Consumers in the Market responsiveness of the quantity demanded for a
good to a change in the price of another good,
4. 5. Changes in Propensity to Consume. ceteris paribus

5. 6. Consumers' Expectations with regard to The following points highlight the

Future Prices
seven main factors affecting the price
6. 7. Income Distribution: elasticity of demand. The factors
are: 1. Nature of the
7. Good 2. Availability of Substitute
Goods 3. Number and Variety of Uses
of the Product 4. Proportion of
Income Spent on the Good 5. Role of
Habits 6. Possibility of Deferment of
Consumption 7. Price of the Good.