Basic Economoy

Demand

Demand is a part of economic that involve goods and services that consumer or user will buy and use them at certain price or value. Demand factor is determine by many factors other than price. Example : Substitute Goods And Complimentary Goods.

Law of Demand:

It is our common experience that the quantity which people buy is affected by its price .we may observe that the price if a commodity and its demand have inverse  relation between price and quantity demanded is universally true , the economist call it the LAW IF DEMAND

 “All else equal, as the price falls, the quantity demanded rises, and as price rises, the quantity demanded falls.”

Example:

In our society when chicken prices increases people limits the purchase of chicken n switch to other food items similarly in recent times when petrol prices the demand of petrol increases and people shifts from C&G to petrol n consumption of petrol increases.

ASSUMPTIONS :

• Income of the consumer does not change
• Taste of the buyers do not change
• Price of related goods remain same
• Population does not increase
• People do not expect further changes in prices
• Quantity of money

Definition of Supply

Supply is a goods and services that they give to sell to consumer and user. It is also known as something that consumer needs or wants. A value of supply can be offered with price. Consumer will compete to get the cheapest price of a supply.

Example:

Ff we take an example of petrol recently the prices of petrol collapse so the supply of petrol was also limited .which result in increase of demand . but when petrol prices increase the supply also increase in order to ear maximum profit .

Relationship between demand and supply:

1. If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price.
2. If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price.
3. If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price.
4. If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.

Demand Curve

[pic 1]

The diagram above shows that the demand curve shift from left to right. When the price increase, the quantity demanded also decrease. It shows negative relation. Example , when the price of chicken increase , the quantity demanded for fish is increase.

Supply Curve

[pic 2]

This diagram shows a supply curve. The diagram shows that, when the price increase, the quantity supplied also increase. Supply curve is a positive relation.

Demographic

In 2014, Pakistan estimated population is roughly over 1.8 Million. It makes Pakistan into world’s sixth most populous country behind Brazil and Nigeria. Back then in 1950 – 2011, Pakistan’s urban area population increases, and the total population increases too. In the past, the country population have a high growth rate that have been change by moderate birth rate. Last year in 2014, the population growth rate is at 1.49 percent.

Pakistan is a country that is located at South East Asia. Pakistan have many cultures , religion and language. Different province speak different language.

Geographic distribution

The majority of southern Pakistan's population lives along the Indus River. Karachi is the most populous city in Pakistan. “In 2011 record of gender and sex ratio, group under 15 years have the ratio of 1.06 male and female. Group 15-64 years old ratio is 1.09 male and female. The total population in Pakistan gender ratio is 1.07 male and female.” - http://en.wikipedia.org/wiki/Demographics_of_Pakistan?

ECONOMICS

Economic is a vast word which has so many meanings and describes various concepts regarding production and consumption of goods, equal or fair distribution of wealth or resources, how to utilize unlimited resources or scarce resources to satisfy human’s unlimited wants and needs.  

MICRO ECONOMICS

Micro Economics and Macro Economics are two major approaches to the economic analysis. Micro has a narrow concept while macro has a broader concept.

 Micro Economics is mainly about individual (a person, household) or small business (firm, or industry).