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Demand (Economics) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Demand? Demand, in economics, is a measure of the extent to which a consumer desires and willingness to purchase a given product or service at a pre-defined time or period.  To constitute demand in the market, a consumer must have both the desire or need and...

Rule of Maximizing Utility – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Rule of Maximizing Utility? When making purchases you should choose the item with the greatest marginal utility per dollar spent (i.e., the most bang for the buck). For a finite budget (limited funds to expend), and making a choice of the quantity of two...

Law of Diminishing Returns

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Law of Diminishing Returns?  The law of diminishing returns is the premise that additional units of a given resources may initially provide greater benefit; but, eventually the benefit provided by each additional unit will decline until it reaches zero (or...

Factors Affecting Demand

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What Factors Affect Demand?  The following factors often affect the demand for a product: Taste Shift Change in Population Change in Income Change in Price of Substitute Goods Change in Price of Complementary Goods Future Expectations of Financial Position A change in...

Imports and Exports – Explained

by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations

What are Exports? Exports are the goods and services that one produces domestically and sells abroad. What are Imports? Imports are the goods and services that one produces abroad and then sells domestically.
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