The law of Diminishing Marginal Rate of substitution with the help of a diagram

Marginal Rate of Substitution A consumer remains indifferent between different combinations of goods on an indifference curve. Therefore, to remain on the same indifference curve the consumer has to substitute one commodity for another by just that much amount which keeps him at the same level of satisfaction. There rate at which the consumer is […]

Demand Analysis

All of us in our daily life, consume various goods and services within our given income constraint. Whenever we visit the market to purchase a particular item to match our requirement, we often get puzzle by the multiplicity of the goods, which are all they near to our requirement. This is the point where we […]

Importance of Demand Analysis

  The analysis of demand theory is very much important in the business decision. Demand analysis helps firm forecast the market which is of importance in the modern business activities. It helps to design the appropriate pricing policy. In the present global market, it is not at all possible for a firm to exist without […]