Category: Economics

Economics

Change in Quantity Supplied vs Change in Supply – Meaning and Differences

Written by Joshua

To a layman, there may not be any difference between a change in quantity supplied and a change in supply.

However, to economists, these are two distinct concepts that have different causes and effects.

In economics, change in quantity supplied refers to changes in supply for goods and services caused by a change in price while change in supply refers to changes in supply caused by non-price factors.

These two are different from one another. So, in this post, we will look critically at the difference between change in quantity supplied and change in supply.

Economics

Change in Quantity Demanded vs Change in Demand

Written by Joshua

In economics, change in quantity demanded refers to changes in demand for goods and services caused by a change in price while change in demand refers to changes in demand caused by non-price factors.

So, while a change in quantity demand is represented as a movement along the same demand curve, a change in demand is represented as a shift in the entire demand curve.

Economics

3 Motives or Reasons for Holding Money

Written by Joshua

The first reason is transaction demand, which means that people need money to buy goods and services in their daily lives.

The second reason is speculative demand, which means that people hold money to take advantage of changes in interest rates or asset prices in the future.

The third reason is precautionary demand, which means that people hold money as a buffer against unexpected expenses or emergencies.

Economics

Price Discrimination – Meaning, Conditions and 3 Types of Price Discrimination

Written by Joshua

Price discrimination refers to the practice of charging different prices for the same product or service to different customers or groups of customers.

It occurs when a firm charges different prices to different buyers of identical goods due to reasons not related to differences in cost. 

The goal of price discrimination is to increase the profit of the business by capturing more consumer surplus and converting it into producer surplus.