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achievements of development planning in SAARC Countries

The Achievements of Development Planning in SAARC Countries

Learning ObjectiveTo discuss the achievements of development planning in SAARC Countries SAARC Countries have experienced several changes and improvements because ...
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Constraints or Challenges of Development Planning in SAARC Countries

Constraints or Challenges of Development Planning in SAARC Countries

Introduction South Asian countries are competitive but, in many respects, they are complementary to each other also. All the member ...
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Plan Priorities in SAARC Countries

Plan Priorities in SAARC Countries

Concept and Introduction of SAARC After 1945, the trend of the establishment of various regional cooperation organizations like the European ...
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Concept of Duality in Consumer Theory

Concept of Duality in Consumer Theory

Meaning of Duality The term duality is habitually used to denote a dissimilarity between two correlated concepts, such as duel ...
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Income and Substitution Effects of a Price Change

Income and Substitution Effects of a Price Change

In our situation of good X, good Y, and money income M; if money income and the price of good ...
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Income Consumption and Engel Curve

Income Consumption and Engel Curve

Learning Objective To explain the derivation of income consumption and Engel curve for a normal and inferior good This issue ...
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Change in Prices and Derivation of Demand Curve

Change in Prices and Derivation of Demand Curve

Introduction In the analysis of consumer’s equilibrium, price and income are an exogenous variable, and change in the values of ...
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Comparative Statics of Consumer Behavior

Comparative Statics of Consumer Behavior

Introduction The theory of consumer behavior and demand is grounded on the assumption that consumers try to allot limited money ...
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Consumer’s Equilibrium with Indifference Curve Approach

Consumer’s Equilibrium with Indifference Curve Approach

Introduction A consumer attains his/her equilibrium when he/she maximizes his/her total utility, given his/her income and prices of the two ...
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The Consumption Decision

The Consumption Decision

Learning Objective To explain the technique and solution of the consumption decision problem Once the consumer identifies his or her ...
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Preference Ordering

Preference Ordering

Background and Concept of Preference Ordering Learning Objective To explain the concept of preference ordering and axioms of preference ordering ...
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Cardinal Utility Versus Ordinal Utility

Cardinal Utility Versus Ordinal Utility

Learning Objective To explain the similarities and differences between cardinal and ordinal utility analysis (cardinal utility versus ordinal utility) Ordinal ...
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Application and Uses of Indifference Curve

Application and Uses of Indifference Curve

Besides the analysis of consumer behavior and consumer demand, the technique of the indifference curve can be used in the ...
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Price Effect and Derivation of Demand Curve

Price Effect and Derivation of Demand Curve

Learning Objective To explain the derivation of the demand curve with help of price consumption curve (Price effect and derivation ...
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Decomposition of Price Effect into Substitution and Income Effects

Decomposition of Price Effect into Substitution and Income Effects

Different factors directly affect the consumer’s equilibrium condition, including change in the price of one good, the price of other ...
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Income Effect and Derivation of the Engel Curve

Income Effect and Derivation of the Engel Curve

Introduction of Engel Curve The income effect shows the total effect on the demand for goods due to the change ...
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Income Effect and Income Consumption Curve

Income Effect and Income Consumption Curve

The income of the consumer is also one of the major factors affecting the consumer’s equilibrium or objective of utility ...
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Price Effect and Price Consumption Curve

Price Effect and Price Consumption Curve

Consumer’s equilibrium is derived under ordinal utility analysis with the assumption of constant money income and prices of the goods ...
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Consumer's Equilibrium

Consumer’s Equilibrium

Introduction to Consumer's Equilibrium The prime objective of a consumer of goods and services is to derive the maximum or ...
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Price/Budget Line or Budget Constraint

Price/Budget Line or Budget Constraint

Concept of Price/Budget Line or Budget Constraint The indifference curve displays the preference of the buyer. To find out the ...
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Marginal Rate of Substitution (MRS)

Marginal Rate of Substitution (MRS)

Concept and Meaning of MRS The concept of the marginal rate of substitution (MRS) is an important tool of indifference ...
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Assumptions and Properties of Indifference Curve

Assumptions and Properties of Indifference Curve

Concept of Indifference Curve (IC) In the microeconomic analysis, an indifference curve (IC) is a graph that shows different combinations ...
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Concept and Assumptions of Ordinal Utility Analysis

Concept and Assumptions of Ordinal Utility Analysis

Learning Objective To explain the concept and assumptions of ordinal utility analysis Concept of Ordinal Utility Analysis The theory of ...
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The Concept and Rules of Derivative

The Concept and Rules of Derivative

The techniques of optimizations are significant tools needed for measuring the efficiency of business firms. The economic agents have different ...
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Basic Mathematical Concepts Used in Economics

Basic Mathematical Concepts Used in Economics

Economics through its different theories and principles help to economic agents and participants in their decision-making processes and help them ...
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Criticisms of Cardinal Utility Analysis

Criticisms of Cardinal Utility Analysis

The Cardinal utility approach provides a sound basis for analyzing consumer behavior based on the arithmetic measurement and expression of ...
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Derivation of Demand Curve under Cardinal Utility Analysis

Derivation of Demand Curve under Cardinal Utility Analysis

The key purpose of the analysis of consumer behavior is to derive a consumer demand curve. Here we will discuss ...
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Consumer’s Equilibrium under Cardinal Utility Analysis

Consumer’s Equilibrium under Cardinal Utility Analysis

Meaning of Consumer’s Equilibrium Consumer’s equilibrium is the position in which the consumer reaches the highest level of satisfaction given ...
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