Basic Concepts in Economics: Theory of Demand and Supply. Discussant : Md. Alamgir Assistant Professor, BIBM. Definition of economics. Economics, the Science of Scarcity
Basic Concepts in Economics: Theory of Demand and Supply
Assistant Professor, BIBM
Good - Anything from which individuals receive utility or satisfaction.
Utility - The satisfaction one receives from a good.
Bad - Anything from which individuals receive disutility or dissatisfaction.
Disutility - The dissatisfaction one receives from a bad.
Judgment and Opinion
The willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period.
As the price of a good rises, the quantity demanded of the good falls, and as the price of a good falls, the quantity demanded of the good rises,
constant” or “nothing else changes.”
examine the effect of one influence on an outcome while holding all other influences constant.
Change in quantity demanded Change in demand
supply, which states that price and quantity
supplied are directly related, ceteris paribus.
Change in supplyChange in quantity supplied
Qd = 1,500 - 32(10) = 1,180
QS = 1,200 + 43(5) = 1,415
1,500 -32P = 1,200 + 43P
TS = CS + PS
# of slices of pizza total utilitymarginal utility