Food Economics: Demand, Supply, Elasticity & Population
Lecture 7: Demand, Supply, Elasticity
Lectures:
Lecture 7: Economic frameworks to study the world food problem — demand, supply, and elasticity.
Demand Curve
The demand curve follows the Law of Demand: as price falls, quantity demanded rises, producing a downward slope. This occurs because of:
- Diminishing marginal utility — less satisfaction from extra units;
- Heterogeneity in demand — different people have different willingness to pay.
The entire demand curve can shift based on changes in consumer
Read MoreKautilya’s Arthashastra: Economic Principles and Statecraft
Kautilya’s Economic Philosophy and the Arthashastra
Introduction to Kautilya
Kautilya, also known as Chanakya or Vishnugupta, was a distinguished Acharya (professor), philosopher, and the influential Prime Minister to Emperor Chandragupta of the Maurya Empire. He was instrumental in overthrowing the oppressive and corrupt Nanda dynasty, securing the throne for Chandragupta between 321–297 BCE.
Kautilya provided crucial advice on both political and economic matters. His policy approach was inherently
Read MoreKey Economics Concepts: Demand, Markets, Money, Inflation
What Is Demand? Its Determinants
Demand refers to the quantity of a commodity that consumers are willing and able to buy at a given price and time.
Determinants of Demand
- Price of the commodity: Demand decreases when price increases and vice versa.
- Income of consumers: Higher income increases demand for normal goods.
- Price of related goods:
- Substitute goods: If the price of a substitute rises, demand increases.
- Complementary goods: If the price of a complement rises, demand decreases.
- Taste and preference:
Monetary and Fiscal Policy Mechanics Explained
Economic Policy Fundamentals
Monetary Policy (MP)
Monetary Policy (MP): Refers to the decisions made by the central bank regarding the control of financial variables (mainly the money supply and interest rates), implemented by the European Central Bank (ECB).
Banking System
Banking System: Includes commercial banks, savings banks, and credit unions. They create the money supply by creating bank money through customer deposits.
Fiscal Policy (FP)
Fiscal Policy (FP): The economic authority of a country
Read MoreFoundations of Economic Theory and Global Systems
The Fundamentals of Economics
Economics is often called the “Queen of Social Sciences” because it touches almost every aspect of human life. At its core, it is the study of how people manage scarcity—the fact that we have unlimited wants but limited resources.
Meaning of Economics
Economics is derived from the Greek word Oikonomia, which means “household management.”
- Modern Definition: It is a social science that studies the production, distribution, and consumption of goods and services.
- The Problem
Economic Theories of Rent and Wages: Analysis and Critique
Quasi Rent: Definition and Calculation
- Introduced by Dr. Alfred Marshall.
- Refers to the additional income earned by factors other than land.
- Applies to factors whose supply is fixed only in the short period.
- The term Quasi Rent is often used as income derived from machines and other appliances of production made by man.
- Quasi Rent is not related to any particular factor of production; whatever revenue a firm earns in the short run over and above its variable cost is called Quasi Rent.
Formula:
Quasi Rent
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