By Pareek, Saroj
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Additional resources for A Text Book of Business Economics
Bringing timber from mountains to plains. Important Terms Used in Managerial Economics 39 3. g. storing of articles by shopkeepers, storing of vegetables and fruits in cold storage for sale when they are not available in season. 4. g. selling of a table by carpenter to an office. 5. g. doctors, lawyers, teachers domestic servants etc. (7) Market: In ordinary sense, a market is a place where things are bought and sold. But in economic sense, a market is a place or region, where buyers and sellers have free competition with one another.
Steps for Cost Control and Cost Reduction: 1. Creating an all round cost awareness in the organisation. 2. Setting objectives and targets. (14) Price : Value of an item expressed in terms of money is called price. The price of everything falls and rises from time to time and place to place, and with every such change the purchasing power of money changes for that item. Price of everything is the rate at which, it can be exchanged for anything else. Price is determined by the interaction of two sets of influences, namely, demand and supply.
O 0' 5 t t 0' o Quanity demanded Fig. 3 Quanity demanded Fig. 4 54 Important Terms Used in Managerial Economics The increase or decrease in demand is also termed as 'shift in demand schedule'. This is because the demand curve shifts towards left or right with decrease or increase in demand. (24) Supply: Supply of a commodity refers to the various quantities of a commodity which a seller is willing and able to sell at different prices in a given market, at a point of time, other things being constant.