The shape of an indifference curve will depend upon the utility function of the individual concerned. One likely shape for an indifference curve is shown…
As individuals are utility maximisers, each person seeks to be on an indifference curve as far away from the origin as possible. The extent to…
For a consumer with a limited income (and that is all of us once our work-leisure choices have been made), the best or efficient allocation…
We have just seen how a utility maximising consumer allocates a budget between two goods. It is possible to generate a simple rule from this…
Consider one indifference curve. Let the individual consume a small additional amount of x. The effect of this on total utility is given by the…
We now demonstrate that if a good rises in price, the quantity demanded of it is likely to fall. A geometric analysis of maximising utility…
Although a consumer’s demand curve for any good x is likely to be downward sloping we cannot be certain of this because of the presence…
To this point , our focus has rested entirely on the individual consumer. For economic and business analysis, though, it is market demand that matters….
The macro environment consists of the societal forces that affect all the sectors in the company’s macro environment namely, the demographic, economic, natural, technological, political…
The microenvironment consists of the actors in the company’s immediate environment that affects the performance of the company. These include the suppliers, marketing intermediaries, competitors,…