Unt-01

economiCS
O
Seienbhe Shud7 o.cheice o indinduas
avol SCihe with oEgard tothe

Scare Dumce emploed o

Ceferis_parsol
ollother
g s hehy eque
pet of ttonomE ArakS
OLoro

Std agrqe.
SHudz belaviar
Sal eeonpmiC unis

P ve eloro m @ Negan've etong mc9

wha SS What CuA t be

Rhotd)

hobCaut end eteat laonWp

bet omakle, anahees goblem
4nymet ledd
rice) o i,w meouc ed.
m s haM of lre ley

Run
|+ime pemodnot enoytor

Conume mducesstoadjw
Comflet7 to anew arusah'on

Coio l a r .
 Past)al eqwolibrun a s Goal quileriun

eplainY eCanoM phengonara

ee oto t mig analR'
eConom a whole
an
8tutte outo anactónin
a i l e market e
Uconame ON e iowhioh all
aquit i urm ot dne/kw Pi cthe'indud o inah
ant neFnReeka n io4 ecowon a i n eauilike
OE eConoN

-E mic inclples

Scado Limed reutes Naslable go Safs

unlimited humon wø
Best poisiKle use o eoules ho geh

nANiMum_

Sagraanó outpu
Conume penfotieuo Homs pojat a veu).

OpPortuni Cost - benekt ogone om_altemare

Hat s t tekcdrcel.

t s he eopacity ok one etourcel to Sans

diiude waiß

Helps in Maki tutonal Chaice& in all aspecy a

busness, ginë tuYtes ott SCarek wats oL
uNimr ded
 Mavgininc reme vd

margini/ uniE ncncate h

Coot TUAnue / u h .

Chavhe in tal toJt dwe toCkapge

quw3o Outpu
ingukput
Mayin Revenne nue
Sale&
mangmal u h i - - ub' tyty
Coneumbn

100rmetol dpplieowhen the vhan art in bulk,

0 Moreates in goles

Produchòn ossbsl Coure-(FPC)

aephcal_eprctedukbn pob'hle Comiranon o
tiwo gcods t_he pdce wh pven
Ocaurcel & k¢hnoloz.
rerourteS
Assumptions
amunt ncfourcel in dan etonpry i Axed, ut tthere canbe
podsero Aom csutefo avter
one
be
n)wHh thelp given rtdovCeX, 0nly fwo, 91oolsCan
odu lea,

t) he ntoUTCes orc hl ebfeclent uKo.

Rerour es e not gualePRcte n oducNon
ok all produtt
+he e love o technolo7 is asumed tol (ontnd
 pmopeoties
_PPC [lspes downmare.
Aegood is
akco
More pmauehon oP one
anothe g0od.
with deoline in prod"ot
bet) charge in quandty d
tyorse elah'on %
produch'o.
rod o t Butter 1
2) Concave ped
eesuke_oh inCnCon Oae o tdrtflatmaDbn

Chaj
Chafe in FPC

hilt inPC Patabon i PPC.

Ckarge 1n rod Ca paert Nth Chog in r c cara dty

ye pec stD both the gooos M erpe ct o ony one

Ltwand
1etwedoxics
OegadotGn
Tec Ahan emet ef oeleorC@se.
uPfobhbn
chaye in ohly e r e j a o 7

he PaoceRS Ok )eclon Mak

fnwutedb PetrDruckgr.(
)Dekne dhe onoleM
Damine he decfe
Tderd po*h&e *oluhon
4 &elec he pesoeA pese}L1e sol
Joplement me seod on,
 An orqanlzad'on -hat Combine & oganigesrr¬bOuNres

orthe pupae ok poduce g0oclsanol/ar

SevceS fo Sale.

Type Am
DSole propsetorgLp or Sole trader -
Hs ownedl bj on-00 peaton,
Onn s ltable bmal co d6ehn
dweneok al aAtes.

ParBne shP
Owhed two or m o e inoliudual.
Hams
A limi to number oprnes Hhat can have
slee jnonertp.
pertnenshp ownes eachare lhkle ol buhess
obligadonl y doqether ief own dta

eels to bunness .

Copoatlon
Owmad bGakekololek.
O'wne ocopova%ae no Habe or a
Cots laws uts or ofhe dbligen vns ohbune83
-
Can bx owned b ndivHus emtovmmen
hoy h asncts ehhes Corpooio Qan
HnEhmtimMa do rdiviculsJ
nonD agrtEMeUT
 Ut -2
Demand
he derire whichis bached wilig n-ef4
ability stob y a pedticulay ommodity
Amount o Co mmody which Codume
undt ok hime ak
williy to buy p
Hot Aace
- Nentve-relath)/
Deherminants ot demand Consumer Jemanodhaa

I+ poStlalel tnaft demanos Cammod 1dy depeolg

Up o ) d c e ot ethe go o c o r e r

mce ocakd guoo0 geice

j)i0come conhumer
N les_br_ preeren CesarcondV
XPeuon d Coriuma

Types t Goeds
)Noma q1odl- TnOme 1 pur chobe N
2npogo odl T me 1 purckate s

GePen _g0eds poce Jemanod 7

Npi olot (ao hdemaol
4)Relasre goodk gcods Mhose poce S intupo
ba rce ohage ocinathe
nokd peduch
aw o Demancl
The over&e
olohbiskie bewee) Ahe price
d commacdy gnd he quanity_ demanoleol perthepeil
 Seeplhg thex achs_Conteant oeeris padb.
e
Neqah've relanion to
he gne Lomod.
AsumphonN- she debramnesould aio Same
poce dgoad do na Zardtas
Change
pice o Complemet odILemaih ca

Subh tuhbn elkect-when Plls, quanhty of demadeel fov

the Comodity (Cdx) incra e9 leccoute individua) uk3n'kutCg
Comool4 x Br othevcommodeg.tmehart no ENpe)
ncome eet When pnce ot commoolt
ConSue Can purc hale mOTe ok (ommodiy wTh ag
inCameP
TverecladoneIp
PT D
P D1
udi ah've ,Not quonh' tasb ve -

On indicates the direCd'on at chage in amountt

demandeo and does not Indl teate -me magmitute d

Chonge
| No rop ortho no Retotonsp
does noh edrakhs_propohoral relahhnghip bet
oharyc in gce xhdtatsckaze_inolemand
e OneSided-
Cal pplans Ha ellect oh okarge inpnèe_an the
quanhz demarded t Stape nethiag.about
eec o phavzein quanh demapaled on
pdte dhcoMAsdit-
Domanochedde demanded
A tohe
Adokle hih 6lams he quonh'
perhod time o eh
Pov Commodit oyes

pdce o Commodity,

Demavo Cunye- vahou

Neqotvel kloped curve ewip
proke qvanhy eombirato94 en

Mon et Derhand
Movement alopg demavd Cune/charge in Qvonbi,
Vemand R
Occs due to
Chayge inpoce
Lesds to

Moyeme alorq he
demand Cune

hnnward upiwd,_
now
Eponso novemt Conhalh6o mor

(dve to pice t) Cdue to Pote

Jncvidual S Morket demavel
 Jndindua Vg Mozket Demgn-
Tnolivndual Demanol Vs Mapet 0emad
eanengthe quanhity denande o comnolty Aggpxaate
b a l e pojeo)al Congumer, Commodity demandeob
T houfehol4 q In
Conumes
a P o t e s ha
dortndt pmce levels dno dstPercnt pyte
he maeet at
ouma given peiod. evels, ONer a cesaon fONOd,

us ve ncode clatonáhp betn hd eopes Cohondp bet)

quantit demanded by a torta quanh'ty emandea
8 2 e congumer as Ne chagehe maped pace/ good.
nerdohor Comgonentot maee olemgnd kumnyabon o olMua
oleman olbyyes.
Demandur felahvel Maskr

awg i t o e g not auwos o l w he Tralwo olleuf Jaet

law o demamo deman

SuPph-. the quanhes o pooola or service that the

Slley 1s will able to prvide al a pice,
agven pont e Kime, thet Cesemos pambus
(Uther dws rumaun Same

Suppo produs ( dercnd& upan

p'ce dhproouo CP)
Codtokpmocluchb n e
aat.gai ces egardyUtare Subsdieg
gekerlkohos lae e, ok fans,. CN)
Supp Pun chio n s Sx= CPrC,T, &,N)
Law Supply adi th eoter
e hiner the mre c Comm
pasbu6.
h e uandP08upp ed ea CetereA
Do6hv eAahon to dCe Com modi7.

8uppl Schedule the qugntity upplitooa commod1

ach 'see o a dien pened d

ppl1 Cun Podre ofto Cuve eoing

he psce -qvanh y Conindpbns O a 4prly
Schednele
The poa e [ope o C e supp1 Cuve
he-upNard to he det inelhahbo)Heos he
hct that kigler pces m4 bc pai! to tover

AssumprorN1ce &pherfoos is caru

Ce dh/ro duONbN rCMaLasme.
4) thee is no cherge indhe axaton pliCy
Gpals ol pmderer gchani Same
 Slope of vpeCurve chauge to pntce (4P
Cheugo i quan)tY (AO ).

Mazket Equillbsun
Cqulibo un_occurd at a point where
quanht clemand and the quatty suglied a n e
equal to each othes 0e demard
EqudltbnumDES 6Supp
Fos pmce belay equliiun D75 pdce pulel uund
Forsphte above equllboumD<S>mce puleddownnarcd

S h i t in Demano Supp
Cunre
Crve
price Conplene17ras. psce offaotooh proel
apein
ce asubte Asocd oce ot othergoo ds.
Aesmal &tnkestosgoads. Stake otechneloy
pice tn Ahue
tahs&predrenteS
populado) gocli otbme
ice in Autuc. u mber oh hmg

Adjustments to Charje Demard Supp