What is Economics Education

Economics education is the learning resource of economics. In the economics education, teachers research new ways to teach economics. They teach both micro and macro economics. In economics education, students learn different economic laws. They  learn GDP, national income, employment and other major economic issues. All these economic issues is very important to know for better development of economy. 

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Say's Law of Market

Lecture Series on Economics by Prof. Vinod Kumar.

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Explain Consumer’s Equilibrium with the Help of Indifference Curve Analysis

Meaning of Consumer’s equilibrium

Consumer’s equilibrium is that point in which consumer consumes the combination of two goods by his limited income. He gets maximum satisfaction from these goods and never changes this situation. If he will change this point, his level of satisfaction will decrease.

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What is Law of Diminishing Marginal Utility? What is its Importance?

Definition of Law of Diminishing Marginal Utility

Law of Diminishing marginal utility states that if other things remain constant and if consumer increases the consumption of any product, then marginal utility will decreasing and after sometime it will be negative.

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Cost and its Main Concept Given in Micro Economics

Definition of Cost

Cost means all expenses which incurred for production and operation of business. Cost is importance because without calculating of cost, price of any product can not be calculated. Cost provides the information what price will be fixed after adding some margin. But in Cost accounting and economics, this concept is so important and a student of commerce should now every terms used in cost. After this he will able to calculate the price and making other cost policies to reduce cost and increase revenues.

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Why is the Marginal Cost curve “U” shaped?

Definition of Marginal Cost

Alfred Marshall invented the famous economics word marginal, it means, one more unit. If we produce one more unit of product, the changes in total cost are called marginal cost. The formula of marginal cost is

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Explain Clearly the Law of Variable Proportion and also Tells its Main Reasons

Law of variable proportion states that if we increase one variable resource of production for increasing output , then after some time total production will increase with decreasing proportion and marginal and average production will decrease. In simple world there is no substitute of any resource of production . Marshall says this law as law of agriculture but this law is universal in real sense.

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What is Elasticity of Demand ? Explain its Degrees and Different Methods of Measuring it .

Definition of Elasticity of demand


Elasticity of demand may be defined as percentage changes in demand divided by percentage changes in prices . This is the simple measurement of the changes in the value of demand , if any changes happens in prices . Suppose if Ram purchased fruit 10 kgs at Rs. 5 per kg . If the price of fruit increase by Rs. 1 and demand of Ram decreases by 8 kgs it means demand of Ram is more elastic and its value can be found by elasticity of demand formula

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Learn Law of demand with Video

I have already explain the law of demand but if you are interested to learn law of demand via video , you can learn below .

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Simple Explanation of Increase and decrease of demand for beginners of economics by Video

Prof. Richard McKenzie explains very simple way the increase and decrease of demand in following video . He said that if price will same and demand will rise right side it will be increase in demand and if price will same and demand will shift left side in graph this will be decrease in demand . The main reason beyond are changing the assumptions of demand , means income , taste and habit of buyer will change , then it may happen increase and decrease in demand . You will also watch it .

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Why is demand curve's slop downwards or negative ?

There are following reasons of negative or downward sloping of demand curve

Ist Reason

Effect of law of diminishing marginal utility

Main reason of negative slop of demand curve is the effect of diminishing marginal utility . According to this law , the consumer will consume one more unit at less price because according to this law , next unit will give him less marginal utility and he will not interested to pay high for low utility product . So , according to this law , if prices decreases the demand will increase and slop of demand curve will be downward .

2st Reason

Effect of Income

when a buyer purchase goods at a certain price , if the price of this product will decrease , at that time buyer's real income will increase . He will capable to buy more . So , after decreasing of prices , buyer will buy more goods and trend of demand will increase . This is due to income changing effect and slop of demand curve will be downward .

3rd Reason

More Usages

If the price of any product will decrease , the buyers can also these products for other uses . Suppose , if the price of potato is $ 5 , I will use for only as my food , if the price of potato is $ 0.10 , I will use it for my pet cows and also other animals . So , for more usages , demand of product will increase and slop of demand curve will decreases .

4th Reason

Now buyers

One the price of any product decrease , new buyers who can not buy this product due to high price , they will also buy this and the demand of this product will increase and it will negative the slop of demand curve . This the simple reason why demand curve's slop downward .

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Demand and law of demand

Definition of Demand

Demand may be defined as the quantity which are wanted by buyers and they are willing to buy and also have capability to buy. It means , it is the total quantity of purchase by customers . Because demands must have following conditions .

1. One buyer wants to buy .

2. one buyer is willing to buy .

3. He has capability to buy . It means he has money to buy that product . If he want to buy but he has no money , then this want is not demand but it is just need .

Law of Demand

There are so many factors which affects demand , if all other things remain constant and if price will increase , there will decrease in demand . But if price will decrease , then demand will increase . This rule is called law of demand .

Assumption of demand

1. Income of consumer remains constant .


2. Taste of consumer remains unchanged .


3. Govt. policies remain same.

Graphically presentation of Law of demand under demand curve :-

If we present demand curve under law of demand then we found that DD demand curve's slop must be downward or negative . You are seeing that price on oy and demand of quantity is on ox and when you make graph it will increasing downward in right side . It means if price increases , demand decreases and if prices decrease , demands increase .

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Business Economics , its nature and uses

Definition of Business economics

Business economics is that part of economics which are related to economic activities and sole aim to growth in business . Every business is operated by some resources and these are limited . Business economics tells the techniques about how to utilize resources for maximum satisfaction . Both micro and macro economics tools are used in business economics . But micro economics are so related to business economics because for effective operating of business , micro economics helps to optimize demand , production and price and factor price theories .

Uses of business economics

There are many uses of business economics which can be explain in following points .

1. Effective utilization of business resources :

Business economics study is very helpful for effective utilization of business resources . It determines every factor's price on supply and demand of such factor so , that the price becomes optimize by this supply and demand analysis .

2. Full employment

Keynesian 's general theory of employment tells us that full employment depends on investment and effective demand if both will increase after this employment can increase . Govt. takes steps for increasing investment in self employment schemes and try to help to sell the products after this full employment generated .

3. Profit and wealth maximization

Main motive of business can be fulfil with use the techniques of economy . Economics build up wealth equilibrium of production and demand . Business knows what to produce , how much to produce and to whom to sell and after knowing these techniques , his cost is reduced and its positive effect is on profit and wealth .

4. Effective use of economic policies for business development

Business economics makes different economic policies under macro economics and these policies utilize for business and trade development . For instance , we can take monetary policies . In monetary policies , RBI has power to change CRR and other interest rate for development of business .

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Wants and their types

Economics has defined want very scientific way . Wants include all human's desire which he desires to get because he is social animal and when he see other people with these material . He thinks that he wants same thing . In other world we can want to money or any other thing which attracts our mind and brain .

Wants are three type :-

1st Necessity :-

All wants which are very necessary to live in this earth , that wants are called Necessities . In necessities we can include air , water , food , cloths and house . We need water and food for drinking and eating , we need cloths to wear , we need house to live . If we do not get or receive all these things , we can not live in this earth . Human beings necessities are more than other creatures of God , they live in the nature of God without any house or any clothes . But human being can not live without cloths or without house . If a person does not do any work but , that person also needs all above basic necessities for living his life .

2nd Comforts

Comforts are also the want of human being . But without this we can live the life . But if we get comforts , we can live better life . Cooler , fans , Scooter and computer are all our main comforts . Because with these comforts , person becomes more efficient .

3rd Luxuries

In economics , luxuries are those wants which crops up when a man or woman become richest in this world . After this he or she dreams of AC rooms , eating only in five or seven star hotels . He or she baths only high paid bathing pools . He or she wants to travel only in top costly ac cars . He or she wants to live only in high cost building . These all desires and wants are called luxuries . It decreases human efficiency .

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Meaning of Economics

Economics is science of money . It is the wonderful science in which we see all problems relating to wealth and then try to solve them . In this world , it is general thing , that our wants are more than our resources means our earning or our money or our wealth . This science gives us the guidance how to satisfy of unlimited wants with limited resources .
Here I want to explain the economics with an example .
Suppose , you have RS. 100 and you want to buy clothes , you want to buy stationery and so many other things . If you know economics science , then you will buy most necessary thing and after this saved money will spend comforts and after this buys luxuries . So Economics gives use different techniques with this we can save our fund , our money with better way.

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Economics - Latest Research

I have made this blog for latest research of economics .

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