t =i a7 A ® > Demand ¢ VHLLY 0 pecig ane sore al } = > dardinal and oreun > Demand functte? Sepia, meearurabelady of utc tety: ' —Factere cute av PAasumphon oy cayeenal tattle > Lew of ob ~ “a henson downward doped = ja om cehng marginal wo Prciplions tothe laws clemand et: , meat ¥ bs Peirce pee of > AF laatitcly iy oh demand and (te heen ara anginal wentaly H Theres ob Demaned coh abte to Poy: oD. ~ Amey Hey romement of ours por woluch we ome / ieee ‘ dt wonrtsls of ningtt- (@d olett' te fe have a commocte he u g Gh) Abikiby to poy "The demand for any commodity o © weltdagnen te pay fervice tA the amount that wit be bor bet et mag Give pridce per vubt time.” © — G.L-Thiskettle ve demand Function: yb facet pu vollch clemand of prrodiusts good. olepend ? (4) Past ob geod x (Ps) Ct Jere (ii) quatity Ca) (1) Avadlabou cr (yy drome Of tontunatrs cD) pepulaion\ du = fC Pm, Py, zB, Xo, ey (Aete- meace bay producers) pant A [pees of NYerovt. potcede) Li) (iss) (Gates Procure 'Y! Fae of demand Gk establoshe a sulationstcp bio the pure and the ee poavctely dtmanded of & commocdtdty & Kd > Kuping other thdrys equal, i i hen 1 » the % A comncocled ff falta Man Ls ennand wilt gore and viewed > Baretally, Ibs an inverse melahonthap b/w fe ; Y People demand laste demand! Keeping other fdas tre dame. peas Gate quanti @, an \ 8 7 ent | {got Tower ) *Asturaphions af Law ef Dermand: Bee ee teow a Li) dacome of comtumer Ahold tmain Comat, ) Taste word Pree pesrerce ” " ” ) Puiite of nedaled qood should poe changi H oePrue of Apples pemand fre Apple r E dnt) 4 + Natun _ (Pou «#) (owt seman Natu Agree Eo . Teg atively tapes Fe 4 une a 4 ' 40 é UO pownwar . : or 10 10 : aor * - . 146810 VG F jamanded apps 5D Pec affect -» changt tn qants Ly 7 dus rs 66) prialog goods ‘hs Li dncome oft > change in quantity dennand (Gm) ln & changin - neal none Of a CoraUner ( Bowe OT in) Gabe tebebion apyeet ! > dp colt complemunly ye, innense fis we 7 > Lomaple ret rtard "he , me ) “abpent e ” cup) ery aes opin com Oyt im pores PreP _# ‘ van 29 Eden 29 cor® petrod pubs <3 9B PD, Qutb SP mryor a enuptions of las eg demands comp Bg bil not dmeade at Of K* (De Stats bavods_( veblin eppeed Acc. fe veblen, some comcunnrs awe cater the the ubilily of comnaoclity sntitaly by (hs pure » fe, fae price ob d 8 etal great b's udoting Fhe Ey ane Gamers - qk pr ategeos car, prattigious boke ett LOD tAnet applicable bine ) Griffen Creede > gts a type *h produc qrat praplr consume nore oF ie an chs peedes Mader Cind vie versa ,violattngs the Lop SS AAIL pater pfae wommumor have fo spent a greater oe hit flair intone to maintain Aanne tel ty aa ea on 4 Ex! Bread, Réw , Kerosene, MatchBox, Salt ,Medltuine . ia) ‘ iD) change in expectations up. ths peoples st reve ix putes pacity mine on ball ,fren the Law of bhangra about (yr change in toate [pat jomenees of contumte: $f there arly: and pruperenee Ob the Serre (gee tet app'gs G demand “ators wi! vy Ne cescanees bh debe! An ineease in the pre - i ers t pres F hare eee oa . pte ote LA fall in pRER will ae nod brung at ve nach ©# Elasticity of pamand;. 1} difined 24 prreontage change in quantily oleman ® seek gl ag te pee, OEE AE A > oe the rutponstvenes Of quantely oliemonded to change the pdeguee op elaslilly 6 demand :- CF? Pecpeetty cere ye cerwornd (Eq= 0) — ‘the Er dead, 5 db vin Aacel te bopper whan a itil. change fm | to an Dnfincle change in ey cloranded » The shape he horizontal Atraigrt line. a a hy | oy demand 4 “id Viitiaery ebeelee dunand ( gz!) > Te anol vs doc Te be a elastic vohen a geen proportionat change nthe pice level 2qycal poe? sicange im endl dumand Gh prea chong oY ths db ole change by toy t p (eg:')(iv) Move elastic demand (tay) o> Wha crmahon fa” whut @ ce eas onhly damandid th puss change 10% ve d jo a big chanpt (x aan Ob charpy paore than lo (u) lps etaitir clemand (Eds | > Us elastic Semana yi a hatin Pn wach a pred v (ts boo to Us chorZ, in quently demo dsd. Ig pore chang 10% fre Qed Chany ie than 107 fh } ‘ (E4 at) PoP, =" _ 4% wy ° peteminanls of dLastiaty & demand Pete ed O Habis D Natome of commode | (i) Subatineds “y (0) piabacbutea Smear (il) Numebew of mses (vit) Toone Demand CY) drome Level (ot) Thm o Tyee 9, ehortior’y th olemard {- (5 pute etantivily door Gi) drome Ueatoohy § lumorrd Gil) Croes etantoriky o den oundd + Heauwamant gy etaaialy Se () Total onpenditure trod (11) Propoetionate meio (iii) Point gtaatourly ganar4 Conde hon of Ineome Clastiatly 65 Deneancled: 1) Pere, Lb means quan baly aman cdeg gord ia yale be matponscve fe charge jn. income’ Pr ee quantity demand Df ejce, 1b maar as ds poled » Thr ft menne an fneneatt in (navme leads to benpase i I gees bapperds th ete yooh eng ‘nga Feel 9g (iii VW insonea Leads Le fall in happens Dre vente of Fapurior goods. ozone spent ane gr mai on te good epetoo 2] Dneonae sport PrP aid He happens ox wees au st macnn the pleoportion A at spent on meg see happend ne wees SCY al breo me ve’ at yssbity Anadgaes’- =a witch > as bontealg pout ged Me gras ~ Iyer on war jt deiued by me ccpewrntrg + Types op veobely: ee oe Total a die mneres Toe sola pf mote ob Dit A Te scone fe oneal quem amour’ a pares Fue upuetegt = +¥0 al weet () Maneginal Ueeli) 1 dt the adel re feat Sing ay coos ive Ten (rum -1) w _Mv= ATu/Ag Types sf mazeiginal wteldly* (hppeactive masayinal Uy (wy Zoro a . - (i) Negative" " ee 76@ Measurement be conunenient of Viebely : Vi cardinal vild \ ov denal Ul let ae “i 7 ‘ (AMarttal) ' (ae ea Yothe satespaction dereved by te oy The Aaketpaction deuved by te coriciemen from eon cuamplcon of i veontsiansn from Mae veonsisuph; grods and semetir Con he oxpresel son of goo and Aen vites oan ‘ cathy : be emymensed in antes or fuel fa mee eat > Quan teilaters apprork ee anncnamant oy unkiy — |» Mancanammant BAAS > Maru gtaal vlelely analye's \ 5 drolufpowrer ewe analysts | c | > Quatitative approat | On basis bf Ca dinw atc ly, frere art, two Laws ( bromen's Jaws) @ Law of, ala ved na dhing marginal vite mat fu us = i * . yan ta 4 a gi baw of ME on ast ee wnat of good. (choy of fi overall gituatin), Y Law Of Dimumedhing Morgiral Daatoty:= | 4b skates hat with “gre neasd The reermrber éh Mons oh a gon, the mastgunal viclily of a [4 decrease or > Marignal utstely of qos and severe oleclinen ws WL& seipply jpennenee, wilh means th we WOE Pepnuuraing mere as more tho poreudan veonumrode 7 ths veelity becomes dinadnashird => Telat etebity ob good Prenenees BU the mareginal uctolely bee Zero Thine Motel aielsty Atal fo dewects (Te finereae OF cuiereaseng mannan) uph O- 2 Assumapliont of Ihe Lau (o) Measwununl df uote lety (i dndrponcleat AERO L (it) Honan grins cue weer () toutinuos consumephton Facts arsed Scone (v) Comtont spats pHabeus iu) No enonge fa part Oh Commack ly fi) comitant nanKI ; uM Te ) mu - uy 4 28 20°45 . | 1S te aS . 3 | ue pees a0 fo i 3 : : oa eS . 1 “ye 5 Be Cc OMY 2 a H “ 6 45 - as mu | oof a o Law OF _ Equi -Maseig pina beste ast 4tals That. pee masx”™ “is oo qusocat their (tuk [atome awtror ay ore chy et ginal yltity per super Ie 4 mpegs on the Jast Leu of zit “geod purchaued wcll be ag pra y “eA eonuunrer geth the man mm gain paction bor fre wah’ pose napriginad. WktLLY Bh goods and Pray putea ixequa ae Grit stots frat tonsurrwrs wil spend out t tbs Tnecome ce savings) on olippeunt goods Cin jos seen 1 St Law, we eonrioler- -ed only one qed | eee A vad practical) and pee aproumt of inal vtility wer & to the goods price equal Laval of astespaclon « Se, Methanvalt cally | fs scons a ap ENE othen - Mim = Hm | ; : 7 = fotae mony oo. LE iol tobe Tn 29b aba petht wldtu th vo raved enpendipune on bom gol * ane ogre,£4 No- ot Mun Muy vars 1 ao 24 2 1é 21 16 1& 4 1 is re q ‘ 10 4 Pa = x 2 fumet Total naontsf 2 pyre 2 Janet ie, preeerred combinetiond: = 3x Se, acc- to egprinnane gerd vil troory the covwwne® wud AX a 4 and 4 unis ty’ aa to axpenich ou obs mmonsy, SAP ex he wi get eqpsh Level oy date spaces ? 6X Mux Mu. “Pa " ry 16 ® * £ ® © es x a & \ 24 ¢ i ¥ Gt 3=4<44 oR 4 2Y = oR + 3Y = er oR + ay = leet gti = 14cm 14624 4In difference curve Tmalyws: Mod 2 Individual oholie vader 44” and Vurenta mt peop, concep qb ofthe communes . oe St Petewsbung paader F ree . : B preomy pce pe ot tavnauls pens Tn come ofpect andl Sabato LO Neumann -Morgenaton > keveatled Praporrenee hypotrores Cras id ob sendbnoteg incline . ee Marnowite Huypotherc’s. (PF mane Savoye gpa dufined a4 the Lowi bf vanvous which pio ruiales the came | f. te Indifference Curve t- Jt can be tonabiraliors of quantities of Hee gook, Level bf Aatespa ction: heic og Aalingaction yo weontumen / uf we for raaintacng ‘the nd. 14 1 good pe howe to iveneate the we reducing he onan amount eee . mount of bthe good * ie y © dndefference Map: te give weit} gs | KA Fhe combination or det of Lowel of cee ts FIP oe a. wumeber of Endéfference = Mer Ee ee | re anon of PncifPerence Map. amt | + : 4 LL op The lope of daclrffercence suit 1 2" & le Zep P as Manginal Ratt Of sabyatci sion CMR) i Gn ha . sy MRSny = AYE = MUn Good “dae ay, a os WProperttss of Indifjuunce Cuwes;. V VY Thay never touch boTh % and y acca M4 am bh cof Of the above plapertres %- (0 Le atwarncleper downward i> Trade eh bli mey ~To by (gen Lame anc hr ,we rave ty give up aoms amourl o% 4. (ii) Ze matt be veonven te orrgiint The Mao devas i é % erases on ineneasi the unt of good m and oeereadng ana ow a anno g eereatong at & good y . mes 2 72 8 4 > @ > x.juterseed (18D) Two Tes will vrewer fen alegher bods Pperente curve m4 % Hy Wk, poem rr eaten catinfac toon than poink o [ewer Te Ne 4 rea fone both Te, ment at pount (a? cuhath is comin of Se Se, 7 fo bom, ona tle and th nut Ahew equ nbpeares be dak, 478 ocehy weds ues controds china owr assuraprone Thug cannct intersect (iv) Heghor Te with grve balgher devel Of satisfaction : Taxing one point conttant (one good Kw amount at courtans), aprfor fied y, we get (lower curve) & . %) (leghew curve) whew “>, oe Lek ~\ by Aakoapa coor Us nant dela In TC, dub to mosce amount 6 good # in De, thal Eo. pouches both fhe ands => Thos vis b ran out of our avacennpiren Tot te a otias conidlreng diferent comb yt tuo commuodtres ' , => dPan Dndlifperrence CHW touctat the Y- ax Paka pote Pas Ahown On the pyre, Ue ped eprint Hs patonpceck with OP @ Ione frat the notes 4, ek, AA Ob Y vomnrode andl repo unstA Mh we Me da case OLAubtti bit good, Cua da, etree TO Le willl ke a draignt bene Set tua weprtsernnze woes Men alhey or langer ‘A aljwongr ine eh ote the LE web | Gh, the wand pauls, and ch wilt tomch any anu (either m 0-4) ee pouch. eittue @ Consumer tgbund Budge rs Lon Ausrnen £4 Bud . . ted ua tae Lee forumecd by jens the poruts E2 pts) OR ore wall buy or Lud Of xo ab Le Ube bts dota recone freon pe gor + ae C4 > easkieally oe represendls The yanso 4s combenatio 1 oe ee can ba. punehacedd atte gover we S To know the tneomt pater [fovck of epniwner'Consumer typrthih sien podat Nm Units of anoly one will buy ao as td marimize bik 8 dened of aatinga chion (optiuns level) sing tally and Succes fun Hon ue £ (my) —O (Fe) La Py k+hy-y © (Budget tore gr T-Pyk—Py y= -® yw, A (Languianjunt’) LaF A CIM Prc& = Py a 1 flary) EA Cm Pek Pe D ® a To ge moxima gL, We have to uslofperente Or. of —Ata =° ( fecmen™ On at OL a .») ot oy OL, of spy =o Q4 ey q OL ~ Mug Ah zo APM Yu = -© © DL = Moy Ayr? > Mvy 2A Py -B) jee a 4 Mba - APou ote) Mun _ Muy 4M Py Mi *t pond” => Slope ogre = Adope of Budget dhe c rene) s 1 > former tit by a Poot } w ae ie fe Be the IC, bogher the Level of satorpaction do Tl, Aboula-be. P d but the” consumer can't afford that much« encloly CC, wilk gore Lesser Level o Aatipaction paan ECy vel pont whitch gies tM maa Level ie > $0, poi Pagives the conte egb- sebbigactoin according ro the" ineonu Level ey Commerceo4 4 consumer Engh pert ey: uu) “4 Endout © pou Px = e/a? fy 2a B/umct rs 7120 gol) Mw. Pa oy = Muy Py Ot foy 4 > Ba yi = My 4 4 ag Beas * - —-o > amr dy dann aq e® ” ALO, T= PyeX + Py B e120 > 6M ey 5 arernty ~@ So, ap ty 74? bu-agee _ eo wle 1 Go jae 2 Ed ES . «, (15,10) ws comunnor Oyo. poceet LE he 1S amet of and to wart if 42 cond" fore commmen. cab pts GY Shope dy Tc = Alope of Budget Line GPM £6 wanit be conven bo Tae pl A oquilibao CF AT rive dt nd order when 2 valurs arse , we have to check for 24 prcler derivative qya Comum pi on . a ew humve (Prue effect): Pal Day | (> Prats Compurnp thom Curve Prue fect jr" (pee \ BPu) a> The ume obtained lay jorung the Contumner egpilibustom print gf nacre than one Teg whith got sbufted dur fo puree ofpect. juseme Contirnp BPH CAE ( Inenrnt 4% tn Li 7 Saco contra pLoore veiw . “pp nemesr eg point got smoped das ps income Upped 7 = — u * Sinton effect = Ga oe Arh 2 Cn sek Tagome te epurrwmer nave 24) aan => Sone cheste Aporer obs te ieveals — 6. he pupert A over we fe quank n i aa eefen quantity commaliiy J( 5 s- Rusk Uncattan naty — = ; — Tee prebabe uty ob cotati or => Unaertamdy v4 aa. botin, : lourg tonetncng ub Known a4 why ts Lae WeUhA ayy yu cK 7 not ene ! —ritean be meatumed ft can be weaned ‘ wy, Dre > chances Of put eommes Oe > chevus 4 out LAs, y nino 1 Known “ > countable > vacountable Ts puobeeleties aacegned 5 Pupbabelitia not anighsd owes % Le attitudes or -Conturesrs sn averse 7 Tuco vols de wot proper bobking ninth bite t S she inderidual proper o ur! gin. (ntows * as compared to a bark y inners worth valals,. Tae.MY \ es Sone tevel yy wpechaten M1 : a reoaeg dechinks for Tite indi vicluclsy ae wt dO meereser Ti) eésw Lover > Tay preter bake ng suk and a icky Meer ever cavtain (nedmnt I MU bf money Meee v que Mr opronre neural _—_——* + voce vtoinitg ds more dangexous than 11K: ounce thaiiby causes’ Natwu af aoe (Ganetsing) Snvestraent Lack of purfect information pT OoOR cone chovee under - @ the Fuiedman~ Savage HOEK pane) an Savage Hypothesis : 4 2 jhe Neumann~ . im - Morgernstren Method wei) The Mankowit2 Hypother’s he Bewnoulld Huy potnertss ' of “ iy pfuadimann, Savege APMC * For maoat people Ths meg Mua Money Sncome diminishes upto | 7 a anit v centate Lurel op moray jucome, ve fecreases prom that maida vel Jo cortarn higher Level eh me [neorae and prone apten ata veg hecghe berel. ducome ib aged OP scat? 1 2 > dt boseically pares cro account aay graph bie Un fpacliatg the [gbetina oy tee opacite ie concave or con. + post vid Denies 1k Lover, averter and Aonactemes rs4K and net commen OF ra neutral » > Moning ust dlr Bernoulle © ng pioapeers an Dn betting | 9 ani F . coe Siaah “4, pg the enpoeted uate ne ea steel N-M &9 2 ee os tic, a nattonad. OnE monetary ed mon rather than the PT | eeononits Ino haviour” gare & mmepnod cod putes, work feo’ gunes 2” ‘i cardins te cepeoted. utility Be wen pacnee arecnal wtolry, oe beled pecan ° mae by me dunk On oh : ect 5 pvcoluiak pebowes in ote i ball ors Meumgpriors 2f? Te ee fe manna ampectil ult uty i ue horee - oe cones nobanility Oh weganting wre Pranchye ni) HOR preee The whore by an inclévialuad under Ab bie and Uneurtalaliy srl ation clepencl om N-m VUlity Inclex , pe pe ports dh ruse, Lutelehes cand wolh change in Sncome oe a“ —> boffervet preferences fowarct netk® depond on whelhen for a. inclanroual MU 64, none dencnrtbes (ruth avorie) 0 mirsate (run dover) ar Memain constant (hk noutral j > NEM micas Vas expected utelity feo ithe monet ong rm 60, |Eapected monetary eabar/mona into ‘ = t(w)+ (IVF S Bj 5 eae e ya . where, c= puobabiléby seo e ~ ws winning anne ; . “op = Loo 4 mound) eneulkting pre. “ares puobabelily of Lot” cng, and of he Les hz welh get the prob Guisning = 0% ond prh Glee + Lebj ne prtze Re S000 phew conrmolatron prrze op Fob, . pete d monetary VE a Gp 0.6 (SOO + 04 C12) S004) F = 3060+4 = Also, the formate of encpected vezbity = re [oc + eT | . Si fetersburg Paradox 2- Ik mefers to the puck tem wy raort people “ ane unwolling 1 parte cuipats Jin a parr gon or bot aibnation Whit On PY, A pair gare us oe 4 ; AL face the mination cnc -F e Varcable putstonaas ve over Sa 52 Pe value of the pa is eqesal tone rs Lots mu with uncert hacty ° Gain eset 7 x > bascieablbaskally, when some amoubt O qrowsoncls of neoney gives Ws a débpenont vicliry /Ue Rupes of cotuspaction. > 86, we hove fo take both expected mous Encore ancl eupeetedt utility Cntoceart gon VEEChY varules from peion to person. ——| Bernoulle Hypetierts i> Th indincieah vir lt toxs daclsdon on the | basil Of euchange abe dity rather than eyporked tronedarg vate MU of mone declines”, gp onedwolts a. ational tothunsr, pho tha Hien averse type: wite pussis 4b us an improvement over Ts Faced mann 1 Monnowe Mate Lovage by potherss. Susteatl of obo Lute telodusetion function: Mod-@ y ed ti Mod-f =p “Cobb bo — bb dongles prod finc? — (D. hort pun analyst : Total preodiuck ES prod fered ett Tp uoduet or ot amalegivs eonerpla - Boney tec ounting 607 pre ihe — Fixed verwable op, _eosk: nt pti nt or tong ee funchon) got mn = jong “oe SF hey gseals a a Ly optima combinalio9 RM hp YR Honeegencows peoducten frc® marginal cost. o Theory of Prediction Faun chon }- > A preducion Punct’on relates phytieat oukpute of & prrodnctton antes a plyslent poll or faster of preduattion choo tak nelelr The Marina => teen a mathemoticat fur amount of extpub that can be bbtained from a giver aanaher Onputl ~ generally capitak and Labowe : 7 i ne er > captted [Re PCs wages /catCapital! realth wolich is wed poy prrodustion cs mae he 1 Me | oyesperang skewvara vis interest, BR Gantreprenenrship > The ability and achd®n te take H4k4 oy oo covvolinaling and wtthizing ak the factors ~ fon ker the unpose uw tain econonve "gai! put Hr ondpoe” 4% Ors aarceu “Dn tax basis of factor of productions (D Short nun Preval ction ~ Some factors of prrodicction ta forud a i th ees > feral an & Long. tome tochan > A period in which The form CAN eg: colour shap (Hold) ahion ond. Auph'y Viand cs fred change Pp. : ha A, abt) aE at chong pee ate ~ Hagler predees wate Larger a poe applied” (2 Long suum preedchinat> fue tes factor & producchon OA Jucable factors o puoceuch’on , chet. eg erbablisred Lsntewrton) dog. teen pee faph : ban’ oe variables wr dabei . te one usndl Hy omronge Fm tabours ee Maruiginal procuct iebown One” ba out pu Ab, = @ | —rAetorat « [MA a. | f ‘ | Avewage P.Teeue Mh AL ; - Pe ay 2 170 40 66 shogt” 4 are (oo *e A ae o% q+ os 5 Ase 62 86 ee ; 6 Ar 69 “ stogt ° soso a 8 504 & “| sone 4 4495 =) * i oy vassal . qos Lowe Op 5 foe Short prsdunction function i ay penoion as Late fe in oo oe bony Hund Pune, ck us en? on Lewd futeon Bae an proposer hist oman bead” fe frat ee — . pie ‘ > soo venieel paeeT cons Me a test fle Law Pero pope” ping te other pat cae pease 1 sopirg NT ise wok 7 acer fe pam ap ome be onal pene I fe” oud mae gar took ape cee Pe : o ae, Bete! (Y drag . fin) pecreeeD a ey megan’ g -f(b)* iF stage —> Ancveating atage cP) rato —> Snereatra in detns anor ats (18) [brcrsoscng a , a abage — TP, AP Mr deeruanerg ) ng atime Abage reas hive a porat aeage, TP Lees below than the op tenn pernt and pected + tos fered pacters peemasn on both The feud fark and 3 in TH Tied Atage , ts epee vontable factor ant peduted. — Sa peat ond Aetond font. bayer Ort not counclered ae Je ” og pocluction and the second tags MA Laswn ad stags of rr be fecawn oll tor factor oy prctuction ° Retwun te Seals - The Lawsoy retwins to toale emp lain the behaviour o pudpat bn puspors te o proportion and pimulbanseus Changs Mapas + Imereasing lapels preportivnate -4 and ponuttansously os pba hack, an empauton Of the Aca oy prodtac ton, @ dneneasing dectanen, Be ade | Propertronate change ¢ punportionatz hang. in input in putpt — ie Af change Be input in zbimasy then charge in out = va mom fran Dts. ae () decreating mebunn to stale’ - ans fin_inpet dn output ie ih change in jap the times — 7 Ls then 2bme. p then orelput elo aseit _]Pocegane. Change Puoportionads Uice “*|© spo nbn tee send oe ‘je | Comtan’ ——_— “Proportional change - Proporhionale chang® ie pie in output in txpel es pdavus, than change U4 eynolbe : change | Maruiginal Rekw & gnc reanrg : | 10 iW | constant iW 16 powtadarge 4 8 |e Total product CT i()se napa fe PE il ee the fee [ in pantod oy tome a () dé reper to Toe jee volume i Bersted precokseet Ag foe ry 4 iven puted gum: i —— [aps arab sme] ou qrantoly ae bactor 3 AP > Avenoge Of rool tively factor o MP > mrauycnal prrodacdsiathy 4 o pacha Average Product Gt vis output (dotet precast) per wat if © forte a> fre } > (total pred! Lf yi quently f acter igen : an in Total. produet rl inal Prooatt + ate of range oe P + Ye sa ob efi | ct jhe addition fo totat produst by pre vane varwabls ihe oh 0 optimum factor combinationi- dn tht bong pn, to cose vombinatee cfors 10 guree ot epee By * Loken or the open goctor waiving one more 0M input fe proses se? preeers ¢ eprg other pater peed: - AO/4 . ABsJAL_ MAL oe Av/> alk APL. aun factors pum wot cnome st maxernizadior fom yon Lett davek Oe + he Leases von 20! / combination papers te the combination of factor’ with wih & jou ve pccaceo eebee woneelS a cup ak dwt guia. eo” ’ damugeneous houston Fant . tomo geneos of degree 7 qtr un paid te be ye C4 Lables he Aan contort Me Vance by Ss Ea lomogence > ab deste Lyre (xy 4027 > cri )= XY + cabbage Prades nT Ketone (Lt inpult ~ namel ansount op output impoct Of changes pio Ib suplects the nelectiondpd propo capttal and Labour~and the dO 4e6 a mean gor sealewtoterg ths dy be dap [2 LK) A ek ap > output y put eee Sf the SeptConstant Glasttely of Aubetiaution (Ces aoa [acer («EJ “te CE retton 7°" @ AYO}, OKAKL 5 yl yupnere Gut the total putput, 4 capital and b vis Labour Avis tw efyeceney porenetin raplitating The tat of tectnoleny | anol Ov anihational aupeett of pre Atos lamore bed : Cost’, cout ue The m0 Purwrved by the | producers (n order 2 t= pc goo ¢ Udewriur. by ‘ ° fe= peas] > oudput cobdeof proc ti™ o Types ob eae £ GY Money comb (trey net vost t Iuplect comet (deplo mp’ Mee (#8) Real coment cok Git) oppurheortg wit * Accounting lot or Explcect wt —> db vig the eat actual polly % Econo Com or Imphiut cost enripes- 2 he “%Yy “ta fesoms for re perch i See : goods: empl _ > cost pack tote ofhur ny tone Genel ovoned WEE 400 > paid out come a Nonnerpenditone Catia o > Gampl = Wages Of workers stay own capttal, tobewrs =~ a j payment oh raw matoorol, matprtalty electeturty oremo a yuonl, tranupert Hs we cost —— 3 short RUN on 5 ! 4 Te. AC me Teo, 4 pn beter nEC Ae rie Sr pocpiep° 7 , Ghaont Kum Cort : Aaget-toe aowie pouod , usually upto Wore ally upto ont ty0a => ewsts inewrred on vetoncats foporatng Q og Labour and ubitehes Uliea eupounes bike cove power Wale theg ant jonown as short-term co4 wrod seat em change wile the enengt ©? quanntily Of op a) : (Rent, Salon’ jindersot os fired capital g _—— Fe 3 putput ° variable wee ro yates an tet Level of output fe pt changes wet change m output © > generally cdercelly proportion elated to THe peal aut tion @ 102 volume Sy pre t we Se cost oy hone mater alt 1s Direct Labour, cliveck Be [ wtp ernes Tiree’ pow c T, pomeump hd? boy w 20 304 marhinh © Total cost) je etntol work vs ha ee a total $e vantabe. weat + greed cont ancl tolal ve b TRC <> pecauus ag Tae pores element op tre TEC) ths. ae nd decreased aA Tht prroduchnn inersaies eg eeeares TF | w Ave = tv /R . PATE @ 4 2 aS / . 3 Jie ee PAVE . 3 : : APO = WO" are a | Quoshhy output | a ty inal Coat t- defined as the change bn total ost eth one une | _ (uerease oF doenrnrse fa the cau erent gen Manis gral cont = atetal eon E ATC d A Puontifg Process) | 7 Ba 7 peer ca hen c Za , output | Total | AY ee | “cont yt ee) iit ° S 18 F 26 ° 2 € . A BY ue a . A A ae 4 . 5 Ar e a Ak b *“ 1 Es = = £ Pp con 9 vole AC a Falling. MCAMC y etme eee AC se phen AC ws ow laa ho pean MC ® a MeeAC 3 * MOU pee . oe | fb rac dnd onteac © eee 7 " Output : bop Mhls Low ert potnt@ Long Hew eon ene oo the + pun “ose wwe nse veone whath \ , A Lint. : aa pace, cost ever >» Inp pousd * using te aa eure duckions 7° deccliug fre eoste rms CAS a > pe . a prong he gerd =ON ity vedasse payer eee chao rack enestics _- Baubiols theory of sats Short 2407 prevewnsal ps ax nsshattor Long ruan Lab Gorin Dawn's Line preceis . peodte! d Le Monopoly mantel Pures and eutpur lebexrminetion © Markel > ft vis % place where goods pnd denucer one exchanged or by phe fransdtcor of gt cor tha bugger and Aether’ at a yun prow © Fealunes of, market: , octhout ve anpet mnt have a conumvolet Ginaportble - (1) A commodity = fim the enirt eres of navankel ohare buyers ondl (fi) Place or Anew t ecu be wepntaite pasa then a Pe ty # Clamificatton of Markel : Re sna | [emeneniy | [getter | Tee i Le veryahort |. pusawet | | Lege 1 perped || adage 2 Spit ——————— | becat 2. Regional 2. Shore ps $t07R, 2. Nasional 3. Lona 3. bullion | A Snternationah 4. vengionty L Lo oOo oy posae basil oh Aree [hoger . oe Ly Local na eekee > One lag base dune as Hines 9 aren ov sagion tase BY mean ee we Als Joral m a 2 Regio pearl —? ponantrated wpa artain 7h Shee (oon. a mds (her focad manket 2) National naanwth > pohent Tre de ara eh 2 nerves porte bowndana hy paler ponannedily COS BD Gaiernotionet prawn > nee pre demand hm Pan pour tony % country oon the bares of er ‘ ° we Lemested, 0% gunol [nerease > Ve phot —* tupplg oh @ good v “d the oy Sy tuk CH beds pomanel de bersres the put qneek ween ew tA ine aud. homand plays d 5 Production 20% be a bnveiror Of Pree 2) Shevt puced paapotant pole 0% 3 Leng ported —7 Supply pan be O usted to guantity mands Suppl pags O* Yon postany HOU ia pruce ele? pusoecatlet onmae pre aod can be charg Lo} > Both aomand ard peppy 4 a wd “4 i, inc um Te tne 17 hagas lies vena opt nh pariable inp wl on in pu - Market vow trold we bougst ts market rartaliec leer andMarket based on lagetety - = @) fh Legat pwarket > Where Aerwites Ase calleal pack me eget fransactions ands cml ake place .Kecognired by The Covi ‘eet ¢ i o been 2) al prorkeee > wowent high rues ase changed what haxe bee neg a Ie tnov. Happens when auphd seed be p $e Oo cnst conn propos be indulging oe Market bared on 6° competetion conapeteti | c een | ‘Momoplistic | puope | Comeporehion jouperety |ohare _— ! Thete ane on Maxkets~ db is a wank et and pelos eho hemogencens prroctiiel ¢ eae agrees prvecliel ¢ jualedy, ct conapet dhovt od susbucche o- @ fate ave Le ¢ 9 Fear of Pi conapetetion ° 2 Large ro jers andl gellows | Undler per feet cowapels Ron, There putsts a hangs peters ont The Ahora Of Uw On devielat amok (in Tae gokat marcel putput. Asa resuct & purrenk the ett paces (sp that o fern a pee pylon ve Q Tenn cannot 0 veampetenen & & pus Laren and nots 7 wurden pr mar 2 Homoganoos Prodmcks : yrder pespect competetion aut firs alk as Piet in pean OES size, C1 ben 10 ep ao wngeet parcels 4 cath other powaging te. So, prsdncts ve P Au 4 3) feet eng ond Ot wt hog finer cow euler © deane jong Dee” vag ow cones TS is mo reestrictt® DD Perpeet prooledge: Bol baagen and teller nwt yuk Jerr wlarlge Of, the prsdenct The buyers fenore what price provatls gn dofperent prarket op 1Ae Kem pres * aoe vik nang veargeel from the co mnnoelt 5) Same : ;) Sas pou son Bolol in on: The ook Ot all firms as b pl pation Cort: Pris Of The prrool a uAnet afpertes by to maortoel > naire Zallorr Cf, \ Pralyok mspdnnde ok A) Zevo-anspr 5 Pre eos oy Jramsporteron 8) . Perfect adic Demand Curve demand eure, horizontal fo w- Ont’ ~ a) Pla Tote gq) No trevt Regulation Pom b Mobility of fac tore: Resor yo) Pbee by f foc tore pene es eee freely prema one , rethen without dees nestnehion Wo (rove antenve lon be the marketaN 2 Monopoly Markel Cut, 2 seller amet barge 1% of buy os 2) busepoly Maret ~ Only 2 aller and Lange ne of Bug » pligore Mantet — & Kee ranaber bly pellers and ben ye re ot buyers é 4) Monopoly market é 7 Radlwoad, Oecrstaty > High chang fo buyers et prlees according to Theey devel of proget | aed. Ta.ose SOs -> Seller Car and we ane bound te pay 2) buopold Market & _ ¢ S a > pus uae ae accor tee g sellers O ing ty fhwi devel of prope ve ancet | 2) ouigoprtf thane: pLewole prt $m ols aun : : phe selene Be elder OG ene on dtandr4 > ccs to prove 5 aa ( oH dee ThLe" ) 6 Bain's Laude posang ery 2-7 Lanett P me —» pased or oleg ere paardeet, pith an eae -preventi volte pevet fn eubsting fore OF pstablished pra Gabe bene Meo) but external or de fous dh nat beara’ to jor Tt raantcae ine THA putwider four? enditure will bE noone than pat rhe 4° pees we they'* face bos ae ta bated 07 qret |S ide» bene pe rt welt ¥ The mi pth see op actly oe 4 f wot heerrnese Lo, decide wwe a price w well Ae a qperack The gubsiouor BO Lone, ported bina wore POG fre elartorily bolpo uncly, -> Bain enpuatios wn pou oven & oh would nanatnaize thetrpuyamplorse - oueron oO , ) tary puree bape tench, ws UAE ae 4 2 i a iL a a tableahed & then eS aeypectere “EO + “ ee eg heel ute, below a7 usted nb, OFT coors po! ? " ae 4 pec poet wel pues t rc ppronstcs Of scale) Sma) germ howe 149" Ac, tangs orm have Lower *° with polleved Lana pon The pret dpaderstap wc 2 a; be fg at fener ncertaen <> 4n frgwes both AR ond yn pdr 5 4? ah g- 00" AG Norpt, | repel Me, meen LAG: Me, drcreee UE Om \ . ppaprena prep = Pm hom me (MR? Kuo cap Lin Peter Porm: pre goer dat PL? ¥e, ‘ put >Pm ¢ ponnt os erty oq potentiel nap eel atte crn ee Peles: the lemand cre ee pli enn mn orgs et ao PL 2, mrt pee a P > Mirada now hors engl monepoly tases vt" put > per bet compete KOM Bn bust 7 Pay they Hem Cann LOS abnormal props, og yous box 8 pees Peek mmacveinanm prob th => qb Tacs pocte ,B Curve wn incloute (MAC) eke ontg norm! mankel romal progets , prae Gh me entry > Fine S shegepoly t~ y / eee /Finn® Bapuds bre Wada Yor AL, Yl Crespetenior <2 maw thede od 4 : A) TR and Te pet welned f p Break euen print) GD me and MO metand , Breet Gven pote if Bre acenen 1 ne ray Root ‘ y w Fexed wst y 6 : p & @ mennst ah tunder Pexfect competerion nt ne qwe cond: ir mOzMK GO MC Cat MR, MC Koo “tp -i > ye - gym RC metied (short Ran) were, 2 aiheetion Occ wty fad wowmat preg CREM ao) me ae VV & i seen profit (A al me Al BMA Ae A MRIAE ips Pare Ave \ \ cy wn0) Loses (PR LRE 4 we BL +! , ibe 1, {/ tik 8 *s ne Lives LAC ME F © Bowwmat’s Theory of Sades Revenue Moxinaz ation ¢ > According « The sales to . amreee Me nt pueeee ip caetrg a aatagecey srhjectives tales nan ima lt O% ng ts pues and adwe aye t tp nadninasem priopue @ foward © Producing o Moxinutzation op sales 7 eonstraint * more » Keepl enn ve -> 4b ys based ow cligepety nearnet, and vt sage thet Salis me [nt'zation i better Than prot mancina'zalion yTusli Rceh en ( PT 0)4 Sas a fem dont a fee fy vee \ Th, sala? anh Clare Currys mone vetosely porte gates Phan propee wilting fe aa nese eel mane keynes sn ducteod vid Lange and grooty ay tee oem wk Weng pre! W Grew wee duis Om The manage atuvary pred propot Lvet te mrks WOs Y | L} | roR 1 fo TR My tr Rassunpiior eingie Lins puted w olegepoly pour jis Sales paaxenaiz at oe oer! v eoat dvs hoped vy) Miniaum puch! wwe down teas L ronutrae as pemand eo" Manin pel’ lat nf neg we 5 of the emp dal insta vation RAP Octet creves ment woth lag caraploger ou a ateady P dor (Aen wa ase ver edsd tre Sekar Gf Mux beter cand gue sale J aces and plier pay pasyenseets on in Ante’ Lon patation go the marke behers shaw We id connpetauve tacks ap napa celives poe G , pinwem enpownner went: @ gn Pog > pea Te met where TR- IR yin Ate EY prevat wide uM by odes a pueget pnanieuiza he” Te vs mon™ pie pretet 4 ls macatatne > pyont © "4 fos 7 Priwt ©? ts warned main AO dh 7 axkuvrtig § mnt actenmnensPrime vanes pow eens () ¢ “46 of - bash pune acogeam —* ayaraseet erensmnste OM Medals © pag hoe Reseed at present wont eo anatyens ef pabler preseel _ tata wee te pens pot anaty? 9 dniernal gp eete vp rehinn (1 — a ot efgectere ne “ek Present wales ewer) riad today fs nacre thar d ahtera certain pe tod Fhe vent tinas periods 0 Time Valus of Money © - of Money 2- Vadue ah neoney 14 valus of som avacount by neones) ween is different at de -> The value of unelot ts roomed b ndorest 7th => peneralas pmpreted posted, the wale? tn fnereaee in Hee ch mona emo > we Reason 5 int! : e an and we cantt 2) Rusk ancl tence tater — futwa never corte . P i . because outplow ie deter ow The Wash favelued in putwe . oe recni ly in owe hand a pagent ponewe an tet we d futwre cash inbiow* p) dnplation $n 0% veanaatony economy We moana melee hos WAor® purchasing powens nan te moned fobs Meeteved fn ati tecprcsents a quale deal eg prorhony b cpnaunap ler gn other words A recpesy today than & ze pn Put powes waver pe Individuals generally pe puro veonbonap Ho 4 Snvesbment An favestor wile progetabl: se Me sper te get tagher wubwen bprmnoyrew or agin & cer tans port 3) Zonsumphe? Leved navns 1a body 4, we o Psannd vale cpv) - tne vader Of O joo th, pone enpected Hebe - meciened vn ‘he peda “ pys Fw } ~ compute tas present value of & meee ia erect > we discon lat ! 9 ek cacont ree ne Nose! perrocsOFetune Val IOs 1 puoi ip compounding wir, PY EY? You con we Cash plow oli ag, Ey) BY StBBOE stu prs Aig f ( conapet Ting the fe FY yay? abperd te pat £10, poe ae oy detanl compoande yews bes mare. foe pute J flume valas tf a Aum tsk 2b KAD oy pom plr nap ing parser t uate’ aU yore te oie AS Pus cteve doa 10, 66% = 17504" fro * ace punt 10144 savings dé q How maue he wok é anneal . pen noid if Yo Wake od withdrawls! i Retuw ns He epee tycus 9, Pl Arawi ly we fu pone hans, PM pre = 220, wee 4 paaretaioee : @ SCE Y7 Caving © 8000 wyournene fy = 70, 000 ee 10h Hh, 19K " AK | fof d fe fe bo Sow “en ™* Tt fe bau serch ov eupendithiore avmouik ux game bers yooeat , t Tepes ARoved Ooty dee lent dk fan ternnede ty & de ccthe wig ch dn Ince wept Aad far gE vt are aual excaw® Supra Aidt & be a et cla bere BOs RT fic and drome Dae Te Kee Lake fre 2 Perheee beg eee 0% Me age “ Terese arc ria tee UIT wel fn A. > 2 Gk p 8 ace , 2K ng vole Ree Robe a Gp gota ek be tama begg we tee pute ge rele er aaa 94 bon tu basis of, present wort. mete oe tr Tea ri — freer vo osok ue yeh ‘ yet Bor 6 yn Pate = . : ’ nox Ae soot ae 2 ata (RET SOR CET upon yous 7/58 6008 ‘ ° ofa, ' payee? he a 0G a~ —_— 40, kehmn = ELXAIVE EL KONG = 33-G)L 4OG6L nw guugt = 34,48 070 ~ @ +¢ Sy Mech B Cup™ 2OL ABOK t pia, o 2,7 ) = Dor t Ae“ xO = 2.2,60,4 0° Return qe CP ALO 2104 Fe Lee, €-21'°) ge KA Itt HRONE 5 B77 + L-44e : gqureh = 24/18 07e @ Teche dup: (844 Bok ¢ PIA, 0-2,4) tee + Bonx S01 ® 19/543? Reluen= BL CHA, 0.210 FEE (Pir, 0-2) ) 2 ee xald Faevete 26.14e 4 Aaak 26, 58,0 -—@ 5 26-58L = wobet calculation: PGT Sod beh A mp RAE, BED ~ 12750, 5 OW born ey 24 CEO = ? 1 4) 1 ay tow Db, choos 1% Se OP” ea Neck © 7 c Co, Too MA ia neon rbtt rentaf ave saroate nae toed hon we Know the pr at vad value W ane net Gon (oevp,ir sn To pend te pute Th aL of patoust 6 i; syne F/pptien by yale vb prutiely ok PE ay pind the pe yal whe ve mrow Te! iy ths yoo" anmacily, and fre Tale gy intewst ae 7 and ote 4 { | | CEA, vpn) = reel Lo. Es @ (VF, iv pnw bY To pind The amount oh “ annuity, eer , ' ne ye futire valor, ith wate Uf watavest py. and nae _t ai)! ‘ I (0) Annual worth Method ' Nee ete found dent known vale ® Pip Civ, a = a nd Qn. Age Civ) = fart eit tenwert fo present wots | hater urd ta Stepd- se formals Boe €) aenar dangly pam dangly pe”aneurt 900% how ase ly ae ay J i fav eae ad Prune nk Loreth eae id eup 7H LAe le O75 pebusns Bae Ply HOG Aan (ie MAL aaaeaer + Al Ite cate? Aan (Ret 4nlob2) = 14,16 net worth [Peecot s = r worth) bo > Ruwnal wort = Alp ler, ©) pw = - 40 foi xnt®) 2 = FyoK 6-263 ~ 220-42Annual vetunn A> 6977 B- 70, oo Laln age yes » PS APvele Ll, (awe) ? og yet bert mreehing 6% annual eqyur y dlew tome Merl, Aw marin & A tSte } 5k PIR, AS 16314 a bene $N pep? 9 vis Ae a4 t ry nel Prucseat Vale nev nNPraH nee prot prsceett bow afee Cerne tee Pees? , by e gu bww PRR MARK + Prsject PR REMARE , pear MAP, " NPV ??. " nevi , Moat etrvant 4 was grad mikes an cp odin Of pee wg amie or paves wet fH wee Rale oh Keb? that bac sre n Rajeelet ynctebenn Ae ce PE t fepectod per than WEY paral fort ‘ the Lowe at Level | bte yor0 LOM Bem fet Daal o fbler Paejer & pa wetfarn CL Caovk eshacm ” panel of geome iat oe Fuble fuer amt gerd veoameding «tase pharact ene Ms <1) Non -encedale uly i) Nan ~ puvadnis ue Peed ag fe Pebler ford 29 Nakionel dhefe wat, Rule ag bracely 1 MOPS Neon eucludabt lly ~> We canna t exdude a gthe » person lon rsvadne ss > Me a webainn sone Oe tral has/ber 1 od Tone AON sade od: Road mt bo med by eweryors aad ard We cant im Jew P be suval,as poad we Usury’ availble and we face 0 Loss i} ong othow powen wes the yoad. & wll considening fre cont Benefet nnalige® wa Mapald corm der — Bone pete — cot _ piaben epee do rant be be public pegect/ good - Benepek wont & dinbenefoe ble. . iced fn the monet a fo eee peti ve praject gore tour oy thet poouepenefet- Cost Kater: rly paert us sclected B-D Geet That oe produced de #2 try Cposttive) tive) by someone anh Oe pat por Tm peactirs tunalebiws or pak eat compersation forthe negate enternleltes: &4 Setting up th foram tre a locality Popihive eubsenality —> cheaper gee: ative enctorn ably —> Arn polation. ay Market at lune expected antl of Me) bento vs whe noone phan Cette ances kg org fnteme teen ICA yond a major wale Fn resetting meucet perluse