Category: Economic Blog
Economic blog about economic topics. Get news from Evansonslabs – relevant economic topics, lecture content, economics models explained easy to understand.
Corona-Crash and the global economy
The Corona Crash in March 2020 significantly impacted the global economy, with many businesses forced to shut down and millions of people losing their jobs. Looking back, the stock market experienced a sharp decline, and many industries, including travel, hospitality, and entertainment, were hit hard. The pandemic caused a decrease
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Preferences and Utility Theory
Preferences and utility theory are critical concepts in microeconomics, explaining household decision-making behavior. Preferences refer to how households make choices necessary to satisfy their needs when comparing bundles of goods. Utility theory uses mathematical concepts to express these preferences and elucidate household satisfaction levels. Rational preferences must meet completeness, transitiveness, continuity, convexity, and monotonousness. Various preferences exist, including substitutes, complements, perfect and imperfect substitutes, and perfect compliments. Preference and utility theory ultimately help derive the formal opportunity costs of alternatives in household theory.
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Elasticity in Economics
Elasticity in economics represents the sensitivity of economic parameters like demand, supply, and prices, among others, to changes in affecting factors. It includes price elasticity of demand, which assesses demand changes if prices increase, and income and cross-price elasticity in household theory. Additionally, direct and indirect price elasticity of demand are derived mathematically. Also, firm and market theories apply elasticity to assess the price sensitivity of input demand, production, firm supply, and market representation.
