In economics, the term 'goods' is defined as a commodity that satisfies human wants, i.e. something which provides utility to consumers. Various types of goods are studied in economics, like normal goods, inferior goods, luxury goods, Veblen goods, Giffen goods. Giffen goods are goods whose demand increases with the increase in its price and vice versa. On the contrary, inferior goods are those goods whose demand decreases with an increase in the consumer's income. As the income effect of … [Read more...]

Income Effect is a result of the change in the real income due to the change in the price of a commodity, As against, substitution effect arises due to change in the consumption pattern of a substitute good, resulting from a change in the relative prices of goods. In economics, the total change in the consumption basket due to the change in price is called price effect. When there is a change in the price of the product or service, the budget line slope changes resulting in the change in the … [Read more...]

Whenever we hear the term 'population,' the first thing that strikes our mind is a large group of people. In the same way, in statistics population denotes a large group consisting of elements having at least one common feature. The term is often contrasted with the sample, which is nothing but a part of the population that is so selected to represent the entire group. Population represents the entirety of persons, units, objects and anything that is capable of being conceived, having certain … [Read more...]

Monopoly refers to a market structure where there is a single seller dominates the whole market by selling his unique product. On the other hand, Monopolistic competition refers to the competitive market, wherein few sellers in the market offer near substitutes to the customers. In economics, the market is not just a place whereby parties engage in an exchange of goods or services for money but it refers to a system wherein there are many buyers and sellers for a product or service having … [Read more...]

The main difference between total and marginal utility is that total utility refers to the total satisfaction received by the consumer from consuming different units of a commodity while the marginal utility, connotes the additional utility derived from the consumption of the extra unit of a commodity. The consumer demand for a product is based on the utility derived from it. From product point of view, utility refers to the power of a commodity to satisfy consumer wants. While from … [Read more...]

The utility is a psychological phenomenon; that implies the satisfying power of a good or service. It differs from person to person, as it depends on a person's mental attitude. The measurability of utility is always a matter of contention. The two principal theories for the utility are cardinal utility and ordinal utility. Many traditional economists hold the view that utility is measured quantitatively, like length, height, weight, temperature, etc. This concept is known as cardinal utility … [Read more...]

Exploratory research is one which aims at providing insights into and an understanding of the problem faced by the researcher. Descriptive research, on the other hand, aims at describing something, mainly functions and characteristics. The research design is defined as a framework for carrying out research activities in different fields of study. The research design is classified into two important categories i.e. exploratory and conclusive research. Conclusive research is further subdivided … [Read more...]

In statistics, the most often used word is 'variable' which refers to a characteristic that contains the value, which may vary from one entity to another. It is similar to the variables used in other disciplines like science and mathematics. The two most common types of variable are the dependent variable and independent variable. A variable is said to be independent, whose change influence another variable, while if the variable is dependent, it will change in response to the change in some … [Read more...]

Inflation refers to the rate at which the overall prices of goods and services rises resulting in the decrease in the purchasing power of the common man, which can be measured through Consumer Price Index. Modern analysis of inflation revealed that it is mainly caused either by demand side or supply side or both the factors. Demand side factors result in demand-pull inflation while supply side factors lead to cost-push inflation. The demand-pull inflation is when the aggregate demand is more … [Read more...]

Census and sampling are two methods of collecting survey data about the population that are used by many countries. Census refers to the quantitative research method, in which all the members of the population are enumerated. On the other hand, the sampling is the widely used method, in statistical testing, wherein a data set is selected from the large population, which represents the entire group. Census implies complete enumeration of the study objects, whereas Sampling connotes enumeration … [Read more...]