1Preface
753.15 Measurement of Elasticity of Demand
21 Introduction to Economics
763.15.1 Elasticity and Total Revenue or Outlay Method
31.1 The problem-Unlimited wants
773.15.2 Point Elasticity Method of Measurement
41.2 Resources
783.15.3 Arc Elasticity Method
51.3 Goods and Services
793.15.4 Factors Determining Elasticity of Demand
61.4 Economic Decision-makers
803.15.5 Importance of the Concept of Elasticity of Demand
71.5 Rational Self-Interest
813.16 Exercise
81.6 Economic Analysis Is Marginal Analysis
824 Theory of Production, Costs and Revenue
91.7 Microeconomics and Macroeconomics
834.1 Meaning
101.8 The Role of Theory
844.1.1 Land
111.9 The Scientific Method
854.1.2 Labor
121.9.1 Step One: Identify the Question and Define Relevant Variables
864.1.3 Capital
131.9.2 Step Two: Specify Assumptions
874.1.4 Entrepreneurship
141.9.3 Step Three: Formulate a Hypothesis
884.2 THEORY OF PRODUCTION
151.9.4 Step Four: Test the Hypothesis
894.2.1 Assumptions of Production Function
161.10 Normative Versus Positive
904.2.2 Law of Diminishing Returns or Law of Variable Proportions
171.11 Economists Tell Stories : 1.11.1 A Yen for Vending Machines
914.2.3 Assumptions of the Law
181.12 Predicting Average Behavior
924.2.4 Limitations of Law of Variable Proportion
191.13 Some Pitfalls of Faulty Economic Analysis
934.2.5 Law of Returns To Scale
201.13.1 The Fallacy That Association Is Causation
944.2.6 Theory of Costs
211.13.2 The Fallacy of Composition
954.2.7 Short Run Costs
221.13.3 The Mistake of Ignoring the Secondary Effects
964.2.8 Long-Run Costs
231.13.4 If Economists Are So Smart, Why Are not They Rich?
974.2.9 Theory of Revenue
241.13.5 College Major and Career Earnings
984.2.10 Economies of Scale: Internal
251.14 Exercise
994.2.11 Economies of Scale: External
262 Demand and Supply Analysis
1004.2.12 Diseconomies of Scale: Internal
272.1 Demand
1014.2.13 Diseconomies of Scale: External
282.2 The Law of Demand
1024.3 Exercise
292.3 The Substitution Effect of a Price Change
1035 Money and Banking
302.4 The Income Effect of a Price Change
1045.1 CONCEPT AND NATURE OF MONEY
312.5 The Demand Schedule and Demand Curve
1055.2 Functional Approach
322.6 Shifts of the Demand Curve : 2.6.1 Changes in the Prices of Related Goods
1065.3 Primary Functions
332.7 Changes in Consumer Expectations
1075.4 Secondary Functions
342.8 Changes in the Number or Composition of Consumers
1085.5 Contingent Functions
352.9 Changes in Consumer Tastes
1095.6 Liquidity Approach
362.10 Supply
1105.7 CREDIT CREATION: 5.7.1 Concept of Credit
372.11 The Supply Schedule and Supply Curve
1115.8 Process of Credit Creation
382.12 Shifts of the Supply Curve
1125.9 Steps in the Process of Credit Creation
392.12.1 Changes in Technology
1135.9.1 Case 1: One Bank – No Cash Leakage
402.12.2 Changes in the Prices of Relevant Resources
1145.9.2 Case 2: One Bank – Cash Leakage
412.12.3 Changes in the Prices of Alternative Goods
1155.9.3 Case 3: A System of Banks – No Cash Leakage
422.12.4 Changes in Producer Expectations
1165.9.4 Case 4: A System of Banks –Cash Leakage
432.12.5 Changes in the Number of Producers
1175.10 Limitations on Credit Creation
442.13 Demand and Supply Create a Market
1185.11 Transaction Approach
452.13.1 Markets
1195.12 Cash Balance Approach
462.13.2 Market Equilibrium
1205.13 Exercise
472.13.3 Changes in Equilibrium Price and Quantity
1216 Statistics: An Overview
482.13.4 Shifts of the Demand Curve
1226.1 DEFINITIONS Of STATISTICS
492.14 Shifts of the Supply Curve
1236.2 Characteristics of Statistics
502.15 Simultaneous Shifts of Demand and Supply Curves
1246.3 Stages of Statistical Inquiry
512.16 The Market for Professional Basketball
1256.4 Importance and Functions of Statistics
522.17 Disequilibrium
1266.5 NATURE OF STATISTICS- A SCIENCE OR AN ART: 6.5.1 Statistics as a Science
532.18 Price Floors
1276.6 Statistics as an Art
542.19 The Toy Business Is Not Child’s Play
1286.7 Laws of Statistics
552.20 Conclusion
1296.8 Scope of Statistics
562.21 Exercise
1306.9 Divisions or Classification of Statistics
573 Theory of Consumer Behavior
1316.9.1 Descriptive Statistics
583.1 Preliminary Notations and Assumptions
1326.9.2 Applied Statistics
593.2 UTILITY
1336.9.3 Inferential Statistics
603.3 Cardinal Utility Analysis
1346.9.4 Inductive Statistics
613.4 Derivation of Demand Curve in the Case of a Single Commodity (Law of Diminishing Marginal Utility)
1356.9.5 Mathematical Statistics
623.5 Ordinal Utility Analysis
1366.9.6 Analytical Statistics
633.5.1 The shape of an Indifference Curve
1376.10 Exercise
643.5.2 Monotonic Preferences
1387 Non-competitive Markets
653.5.3 Indifference Map
1397.1 SIMPLE MONOPOLY IN THE COMMODITY MARKET
663.6 Features of Indifference Curve
1407.2 Market Demand Curve is the Average Revenue Curve : 7.2.1 Comparison with Perfect Competition
673.7 LAW OF DIMINISHING MARGINAL UTILITY
1417.3 OTHER NON-PERFECTLY COMPETITIVE MARKETS : 7.3.1 Monopolistic Competition
683.8 DEMAND
1427.4 How do Firms behave in Oligopoly?
693.9 Law of Demand
1437.5 Summary
703.10 Normal and Inferior Goods : 3.10.1 Giffen good
1447.6 Exercise
713.11 Substitutes and Complements
145Appendix
723.12 Shifts in the Demand Curve
146Glossary
733.13 Movements along the Demand Curve and Shifts in the Demand Curve
147Index
743.14 The elasticity of Demand: Concept, Types and Importance: 3.14.1 Concept of Elasticity of Demand
