Introduction In economics, the concept of elasticity of demand is one of the most fundamental tools for understanding consumer behavior and market dynamics. It measures how sensitive the quantity demanded of a good is to changes in various factors such as price, income, and the prices of related goods. This concept plays a crucial role…
Introduction The concept of consumer surplus occupies a central place in the field of welfare economics and microeconomic analysis. It provides an important measure of the benefit or satisfaction that consumers derive from purchasing goods and services in the market. The theory of consumer surplus was first developed by the English economist Alfred Marshall, who…
Introduction In economics, the concept of choice is fundamental because human wants are unlimited, but resources are scarce. Every individual, firm, or nation faces the problem of how to allocate limited resources among competing uses. The Law of Substitution plays a vital role in understanding this process of decision-making and resource allocation. It is based…
Introduction Social influence is a powerful force that shapes human behavior, attitudes, and decisions. It refers to the process by which individuals’ thoughts, feelings, and actions are affected by others. This influence can occur through direct interactions, social norms, or cultural expectations. In many cases, persuasion plays a significant role in bringing about behavioral change…