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The elasticity of demand and supply

Price elasticity of demand and price elasticity of supply Both demand and supply curves show the relationship between price and the number of units demanded or supplied. Price elasticity is the ratio between the percentage change in the quantity demanded, Qd or supplied,  and the corresponding percent change in price. The price elasticity of demand is the percentage change in the

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Market equilibrium

Market equilibrium – A situation where for a particular good supply is equal to demand. When the market is in equilibrium, there is no tendency for prices to change. We say the market-clearing price has been achieved. A market occurs where buyers and sellers meet to exchange money for goods. The price mechanism refers to how

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MANAGERIAL ECONOMICS: NATURE & SCOPE

Managerial Economics can be defined as amalgamation of economic theory with business practices so as to ease decision-making and future planning by management. Managerial economics is a stream of management studies which emphasizes solving business problems and decision-making by applying the theories and principles of economics. Nature of Managerial Economics: Art and Science: Managerial economics

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