Role of price mechanism in full utilization of productive resources in free enterprise economy

Role of price mechanism in full utilization of productive resources in free enterprise economy Explain the role of “Price mechanism” in assuring proper allocation and full utilization of productive resources in free enterprise economy. Ans) Price mechanism refers to the process of price determination by the interaction between demand and supply forces without any external […]

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Microeconomics- Business Decision making

Microeconomics- Business Decision making a)Explain the role of microeconomics in business decision making. Ans) The role of microeconomics in business decision making can be explained as under: 1) Optimal resource utilization: The productive resources are scarce in the economy and microeconomics tells how the productive resources are allocated in the production of various goods and […]

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Elasticity

Very short questions of Elasticity Define elasticity of demand. Ans) The elasticity of demand is the measure of responsiveness of demand for a commodity to the change in any of its determinants like price of the same commodity,price of the related commodity,income of the consumer,etc. What are the types of elasticity of demand? Ans)There are […]

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