Law of Demand Chapter -2 (11th Std New Syllabus 2019) Part- 2 Lecture. Created by Dr Irfana Smadani . This simple but not simplistic and easy to follow 20 minute, lecturer on Theory of demand | law of demand | Micro economics | Class 11 | Class 12( New Syllabus 2019) and C.A, CPT class as well as this lecturer is also meant for the Subjects & Chapters related to Commerce & Management

Change in Demand and Types of Demand In today's lecture, we will discuss the concepts of extension and contraction of demand, increase and decrease in demand, movement along the demand curve, shifts in the demand curve, and the various types of demand. We know that whenever there is a change in the price of a commodity, the quantity demanded also changes. According to the Law of Demand, there is an inverse relationship between the price of a commodity and the quantity demanded. This means that when the price increases, the quantity demanded decreases, and when the price decreases, the quantity demanded increases. Change in Quantity Demanded: Expansion and Contraction A change in quantity demanded occurs only because of a change in the price of the commodity, while all other factors remain constant. Expansion of Demand Expansion of demand refers to an increase in quantity demanded due to a fall in the price of a commodity. Consider a normal demand curve where a certain quantity is demanded at a given price. If the price falls from P to P1, the quantity demanded increases from Q to Q1. This movement occurs along the same demand curve in a downward direction. Therefore, expansion of demand is defined as an increase in quantity demanded resulting solely from a decrease in price, while all other factors remain unchanged. Contraction of Demand Contraction of demand refers to a decrease in quantity demanded due to a rise in the price of a commodity. When the price increases, consumers purchase fewer units of the commodity. As a result, the movement takes place upward along the same demand curve. Thus, contraction of demand is defined as a decrease in quantity demanded caused solely by an increase in price, with all other factors remaining constant. Change in Demand: Increase and Decrease in Demand Unlike changes in quantity demanded, changes in demand occur due to factors other than price. These factors include changes in consumer income, prices of related goods, tastes and preferences, expectations, and population. Increase in Demand An increase in demand occurs when consumers demand a greater quantity of a commodity at the same price due to favorable changes in other determinants of demand. For example: An increase in consumer income increases demand for normal goods. A rise in the price of substitute goods increases demand for the commodity. A fall in the price of complementary goods increases demand for the commodity. In such cases, the demand curve shifts to the right from DD to D1D1. This rightward shift indicates an increase in demand. Decrease in Demand A decrease in demand occurs when consumers demand a smaller quantity of a commodity at the same price due to unfavorable changes in factors other than price. For example, during a recession, people's income levels decline. As income decreases, consumers reduce their consumption expenditure. Even though the price remains unchanged, the quantity demanded falls. Consequently, the demand curve shifts to the left from DD to D1D1. This leftward shift of the demand curve indicates a decrease in demand. Difference Between Change in Quantity Demanded and Change in Demand Expansion and contraction of demand occur due to changes in the price of the commodity and involve movement along the same demand curve. Increase and decrease in demand occur due to changes in factors other than price and involve a shift of the entire demand curve. Types of Demand Demand can be classified into several types depending on the factors influencing it. 1. Price Demand Price demand refers to the relationship between the price of a commodity and the quantity demanded of that commodity, while other factors such as income, tastes and preferences, and prices of related goods remain constant. It explains how quantity demanded changes in response to changes in the commodity's own price. 2. Income Demand Income demand refers to the relationship between the income of consumers and the quantity demanded of a commodity, keeping all other factors constant. It shows how demand changes when consumer income increases or decreases. 3. Cross Demand Cross demand refers to the relationship between the demand for one commodity and the price of a related commodity. The related commodity may be either: A substitute good, such as tea and coffee. A complementary good, such as cars and petrol. Cross demand explains how changes in the price of one good affect the demand for another good. 4. Direct Demand Direct demand refers to the demand for goods that directly satisfy human wants. Examples include food, clothing, and shelter. These goods are demanded because they directly provide satisfaction to consumers. 5. Derived (Indirect) Demand Derived demand refers to the demand for goods or services that arises because they are used in the production of other goods and services. For example, labor is demanded because it helps produce goods. Similarly, land, capital, and raw materials are demanded because they contribute to the production process. Thus, factors of production possess derived demand. 6. Composite Demand Composite demand exists when a commodity can be used for several different purposes. For example, steel is used in the manufacture of machinery, automobiles, construction materials, and tools. Since it serves multiple purposes, it has composite demand. 7. Joint Demand Joint demand occurs when two or more goods are demanded together because they are used jointly to satisfy a particular need. For example, to produce bread, flour, yeast, fuel, and other ingredients are required together. Similarly, a car and petrol are jointly demanded. Therefore, when the demand for one commodity automatically creates demand for another related commodity, it is known as joint demand. Conclusion In this lecture, we discussed the concepts of expansion and contraction of demand, increase and decrease in demand, movement along the demand curve, shifts in the demand curve, and the various types of demand, including price demand, income demand, cross demand, direct demand, derived demand, composite demand, and joint demand. In the next lecture, we will discuss the concept of Elasticity of Demand and the various types of elasticity. Thank you for your attention. Hope you understand the law of demand expansion and contraction of demand, increase and decrease in demand, types of demand next lecture we will discuss elasticity of demand and types of elasticity of demand. If you have any confusion doubt you can comment below or contract me on my watsapp number 6303481790 or on my email isamdnai786@gmail.com

Theory of Demand – Chapter 2 | Law of Demand | Class 11 (New Syllabus 2019) | Part 1 Created by Dr. Irfana Samdani This lecture explains the fundamental concepts of Theory of Demand in a simple, clear, and easy-to-understand manner. Designed for approximately 20 minutes, it provides a comprehensive introduction to the Law of Demand and related concepts in Microeconomics and Business Economics. Topics Covered Meaning of Utility Meaning and Definition of Demand Characteristics of Demand Determinants of Demand Substitute and Complementary Goods Normal, Inferior, and Giffen Goods Law of Demand Assumptions of the Law of Demand Demand Schedule and Demand Curve Suitable For Class 11 Commerce (New Syllabus 2019) Class 12 Commerce Business Economics Microeconomics CA Foundation (formerly CPT) B.Com and other Commerce & Management courses The lecture uses practical examples and simple explanations to help students understand the relationship between price and quantity demanded, making it easier to grasp the core principles of demand analysis. If you find this lecture helpful, please Like, Share, and Subscribe to the World of Economics channel for more lectures on Economics and Commerce. **Lecture by Dr. Irfana Samdani** Hello students, welcome to my lecture. Today, we will discuss **Chapter 2: Theory of Demand**. ## Lecture Outline In this lecture, we will cover: * Meaning of Demand * Determinants of Demand * Law of Demand --- # Understanding Utility Before we discuss the meaning of demand, it is important to understand the concept of **utility**. **Utility** is the **want-satisfying power of a commodity**. Whenever a consumer uses or consumes a commodity, they derive satisfaction from it. This satisfaction is known as **utility**. Therefore, utility can be defined as: > **Utility is the satisfaction derived from the consumption of a commodity.** ## Nature of Utility Utility is **subjective**, meaning it differs from one person to another. ### Example 1 Consider two individuals: * One person likes chocolate. * The other person does not. If both are offered chocolate, the person who likes chocolate will derive greater satisfaction (higher utility), whereas the person who dislikes chocolate will derive less satisfaction (lower utility). ### Example 2 Now consider the same person consuming a chocolate, such as **Cadbury Dairy Milk Silk**. * The first bite provides a very high level of satisfaction. * As the person continues eating, the satisfaction from each additional bite gradually decreases. * By the sixth or last bite, the satisfaction is much lower than that derived from the first bite. This illustrates that the utility obtained from consuming additional units of the same commodity gradually declines. Generally, the higher the utility obtained from a commodity, the stronger the consumer's desire to possess it. --- # Meaning of Demand It is important to understand that **desire and demand are not the same**. A person may desire many goods, but desire alone does not constitute demand. A desire becomes demand only when certain conditions are fulfilled. These conditions are: 1. **Purchasing Power** – The consumer must have sufficient income or resources to purchase the commodity. 2. **Willingness to Spend** – The consumer must be willing to spend money to obtain the commodity. 3. **Availability of the Commodity** – The commodity must be available in the market. ## Definition of Demand Demand may be defined as: > **The quantity of a commodity that a consumer is willing and able to purchase at a given price during a specified period of time.** ### Characteristics of Demand The important features of demand are: * Quantity of the commodity desired * Willingness to buy * Ability to purchase * Purchase at a given market price * Purchase during a specific period (such as a week or a month) --- # Determinants of Demand The **demand function** expresses the relationship between demand and the various factors that influence it. Demand for a commodity depends upon: * Price of the commodity * Prices of related goods * Consumer's income * Consumer's tastes and preferences --- ## 1. Price of the Commodity Price is the most important determinant of demand. Normally, demand varies inversely with price. --- ## 2. Prices of Related Goods Related goods are of two types: ### (a) Substitute Goods Substitute goods are goods that can be used in place of one another. **Examples:** * Coca-Cola and Pepsi * Tea and Coffee Suppose a consumer is equally satisfied with Coca-Cola and Pepsi. If the price of Coca-Cola increases while the price of Pepsi remains unchanged, consumers are likely to purchase more Pepsi. Thus, the demand for Pepsi increases. --- ### (b) Complementary Goods Complementary goods are goods that are used together. **Examples:** * Ball pen and refill * Car and petrol The utility of one good depends on the availability of the other. For example, a ball pen without a refill is useless, and a refill without a pen body is also of little use. Therefore, if the price of refills increases, the demand for ball pens decreases. --- ## 3. Taste and Preferences Consumer preferences also affect demand. * If consumers develop a positive preference for tea, the demand for tea increases. * If consumers develop a dislike for coffee, the demand for coffee decreases. --- ## 4. Income of the Consumer Consumer income significantly influences demand. ### (a) Normal Goods For normal goods, an increase in income leads to an increase in demand. **Example:** Milk As consumers earn more income, they generally purchase more milk or better-quality milk. --- ### (b) Inferior Goods For inferior goods, an increase in income leads to a decrease in demand. **Example:** Jowar and Wheat A consumer who previously purchased jowar due to limited income may switch to wheat after their income increases. As a result, the demand for jowar declines. Inferiority refers to affordability, not product quality. --- ### (c) Giffen Goods Giffen goods are a special category of inferior goods in which demand increases even when the price increases due to exceptional consumer behavior. --- # Law of Demand The **Law of Demand** states: > **Other things remaining constant, when the price of a commodity increases, its quantity demanded decreases. Conversely, when the price decreases, its quantity demanded increases.** Thus, **price and quantity demanded are inversely related.** --- ## Assumptions of the Law of Demand The phrase **"other things remaining constant"** means that the following factors do not change: * Consumer income * Prices of related goods * Consumer tastes and preferences * Other factors affecting demand Only the price of the commodity changes. --- # Why Does the Law of Demand Operate? When the price of a commodity increases, some consumers can no longer afford it. Consequently, the quantity demanded decreases. Similarly, when the price decreases, more consumers can afford the commodity, leading to an increase in quantity demanded. --- ## Illustration Suppose you plan to buy a smartphone costing **₹80,000**. When you visit the showroom, you learn that due to higher taxes, the price has increased to **₹1,00,000**. If your income remains unchanged, you may postpone your purchase. Now suppose your employer informs you that your salary has increased and you will receive **₹50,000 in arrears**. Because your income has increased, you may now decide to purchase the smartphone despite its higher price. This example demonstrates that when income changes along with price, the Law of Demand may not hold. Therefore, the law operates only when **other factors remain constant**. --- # Demand Schedule | Price (₹) | Quantity Demanded | | --------- | ----------------- | | 5 | 100 | | 10 | 80 | | 15 | 60 | The table shows that as the price increases, the quantity demanded decreases. --- # Demand Curve The demand curve is drawn with: * **Price** on the **Y-axis** * **Quantity Demanded** on the **X-axis** Using the above data: * At ₹5, quantity demanded is 100. * At ₹10, quantity demanded is 80. * At ₹15, quantity demanded is 60. Joining these points forms a **downward-sloping demand curve**, indicating the inverse relationship between price and quantity demanded. Whenever one variable increases while the other decreases, the graph slopes downward from left to right. --- # Conclusion To summarize: * Utility is the satisfaction derived from consuming a commodity. * Demand is not merely desire; it requires willingness, ability to purchase, and availability of the commodity. * Demand is influenced by price, income, prices of related goods, and consumer preferences. * According to the Law of Demand, price and quantity demanded have an inverse relationship, provided all other factors remain constant. In the next lecture, we will discuss: * Factors affecting demand * Change in quantity demanded * Extension and contraction of demand * Increase and decrease in demand Thank you for watching this lecture. I hope you found it informative. If you have any questions or doubts, please feel free to ask. If you enjoyed this lecture, please like, share, and subscribe to the **World of Economics** channel for more educational content.

Microeconomics , Business Economics Chapter-1.Introduction to economics 11 Std Economics Paper (New Syllabus 2019), C.A, CPT class as well as this lecturer is also meant for the Subjects & Chapters related to Commerce & Management Part-1 English Version. Created by Dr Irfana Smadani . This simple but not simplistic and easy to follow 10 minute, lecturer on Chapter - 1,Introduction to Economics, the Lecturer Ccontents are 1. Basic Concept of Economics, Social Science and Definition of Economics in Different Era.

Created by Dr Irfana Smadani . This simple but not simplistic and easy to follow 10 minute, lecturer on Introduction to Economics, Social Science and Definition of Economics in Different Era. Students are advised to watch the entire lecture for better understanding. If there’s any doubt or confusion, please comment below or contract me on my WatsApp 916303481790 or Email: isamdani786@gmail.com.You are unable to find any video on YouTube you can watch this videos on my block https://isamdani786.blogspot.com. In the present video an attempt is made understand the Introduction to Economics, Social Science and Definition of Economics in Different Era. Based on practical template for understanding the economy, which I developed over the course of my career, the video breaks down economic concepts like Introduction to Economics, Social Science and Definition of Economics in Different Era allowing viewers to learn the meaning of Economics and Definition of Economics . First chapter of class 11 is basic concepts of economics. If you look around yourself you can find out many scientific inventions and scientific discoveries. First we will see what science is. Science is nothing but the systematic body of knowledge. Science has two types first is natural science and social science. Natural science has laws which is accepted universally. it means it is accepted by all human being without any doubt and it is verifiable by different scientific methods. This laws can be validate, and can be tested in laborites, and this laws can be proved in laborites when we study science we test the laws in labs for example chemistry laws, physics laws are universally accepted as the natural science laws. We call Natural science as exact science because its approach is empirical in nature. Empirical approach means on which we use the scientific method to observed and test in lab. We can proved it scientifically. Natural science in exact science in which we use empirical approach to study physic chemistry and mathematics are natural science. Now we study social science. Social science is also call as abstract science or behavior science. Because social science study human behavior. To study human behavior we don’t have such laws. Social science laws are not universal and this laws cannot be tested because it is not empirical in nature. For example in psychology or sociology we study human behavior which cannot be tested in lab but it’s a study. For example in sociology we study social aspect and social behavior of human being. When we study the Social aspect of human being we call this study as sociology. Why we study social science and why we need to understand the relation of social science with economic. Economics is a social science. the word economic has been drive from the Greek word “okionomia” which means household of management. Foe example we have finance of our household which we manage with the given resources or limited income to satisfy our unlimited wants. Economy is call queen of social sciences by Professor Samuelsson. Because economics study the economic behavior of human being. Here economic behavior means its study how human being spend their limit resources means income in such a manner that it satisfied all their unlimited wants. When we study this aspect of human being we call it economics. Now we will look at our ancient history. In ancient history of India Kautilya was one of the famous personality he was the statement, philosopher, economics and political advisor in the Court of Gupta Empire. He is also known as Chanakya. He wrote the treaties Arthashastra basically it is a political treaty of ancient history. What is the meaning of Arthashastra here the word Artha means wealth and Shatra means science. Therefore Arthashastra means science of wealth. Basically it’s a science of managing and acquiring of wealth means how state should to collect revenue and manage it. This what Arthashastra Now we will discuss the key point and views of Kautilya ’s which he gave in his book Arthashastra. He wrote that state and government play an important role or crucial role in managing and acquiring the wealth. As per him it’s a state to focus on how to gather and create more and more wealth. What will happen if state gather and create wealth with this state can promote social welfare. Therefore state focus on the creation of wealth to ensure welfare of the state. Kautilya also said that for good governance we need an effective administrative machinery. Effective administration machinery means government should have proper structure of administration when we have proper structure of administration then only we have proper governance. Then in his book Arthashastra he complied the lot of political ideas. So this are the key economics idea written by Kautilya in Arthashastra. Hope you are able to follow this. Now we will discuss the definition of economics. Economics has three important era first is classic second one is neo classic and third one is modern era. First we will discuss the classic era in this era the first definition of economics was given by Adam smith whome we also call the father of economics. His approach was based on wealth oriented definition of economics. He made lot of contribution in economics but the main contribution was his famous book “wealth of nation” or “An Enquiry into the Nature and Causes of Wealth of Nations,” which he published in 1776 in this book he gave a very first definition of economics. Now we will see how Adam smith define economics as per him “economics as a science of wealth”. Just now we discuss what is science exactly means and what social science means. If we see from the science point of view Adam smith call economics as a science of wealth. Because Economics is concerned with an enquiry into the nature and cause of wealth of nations, and it related to the laws of production, exchange, distribution and consumption of wealth. His definition key points are first is laissez fair economy means free market economy. free market economy is an economic system in which transactions between private groups of people are free from or almost free from any form of economic interventionism of government such as regulation and subsidies. The individual is the basic unit in society and has a natural right to freedom. Next point tin Adam Smith definition is wealth accumulation is simply means building up your net worth and wealth over period of time it have many benefits and he believe that nature law of economics affairs. Because nature laws are not man made laws. One can’t depend on manmade laws basically man made laws are created by man for his own benefit or for the benefit of society every on in society see one or other befit. As per Adam smith nature laws are loyal and modest and it never see their own benefit they are ebullient for all. In the last he discuss the point division of labour as an aspect of growth theory. We know that Adam Smith is expert of his field and every person of this world is expertise in one or other field and goods and services are available for all the people and almost all the people use the good and service. With our specialization we can create goods or service with which our growth will take place. Because of this reason Adam smith added the division aspect in growth theory is the main point of classical approach. Hope you understand the classical era definition of economics Now we will discuss the neo classical era here we have Professor Alfred Marshal he was neo classical economics. Professor Marshal gave Welfare Oriented Definition of Economics as Adam Smith had gave the Wealth Definition of Economics. Marshall publish his book “Principal of Economics” in 1890 in his work principal of Economics, he gave his definition of economics he said “Economics is the study of mankind in ordinary business of life it examine that part of individual and social action which is closely connected with attainment and use of material requirement of wellbeing”. His definition key point is economic is study of mankind or human being in ordinary life and examine that part of individual in social action which is closely connected. Here we examine how the individual perform act with in the society because economic is a behavior science and in economics we examine the human behavior to attain the material welfare. Economic is the study of material welfare mean how to utilized the goods it’s a requisite wellbeing means economic is not simply the study of wealth at the same time it is also study of welfare of human being. Economic is the study of martial welfare means in economics we study not only wealth but also what are the way through which welfare of human being will be possible. So this the definition of Alfred Marshal hope you understand this. Next we discuss the modern era definition of economics. Modern era popular economist was Lionel Robbins he gave scarcity oriented definition of economics in his book “an easy on nature and significant of economics” which he publish in 1932. In his book he gave the definition of economics as per him “economic is the science which study human behavior as a relationship between ends and scare means which have alternative use” here ends means wants and relation to scare means resources which are limited or income which is limited and it have alternative used. Means resources have alternative uses but at the same time our want are unlimited means our wishes are unlimited there is no lime for it. In the comparison of wants our resources are limited. As per the priority of our wants can be grade as per our need its depends on urgent need and less urgent need. For urgent need we give preference and less urgent need can be delay. he also said that means have alternative uses this means that our resource has alternative use by nature for example water we can use water to drink or to wash cloth or to take a bath or we can generate electricity. Therefore resource have alternative uses. Today we discuss introduction to economics after this we discuss social science then we discuss definition of economics in three different era. Next lecture will be on branches of economics.

Introduction to Economic 30 min Lecturer in English Part - I.Micro Economics/Business Economics Class 11 | Class 12( New Syllabus 2019), C.A CPT as well as this lecturer is also meant for the Subjects & Chapters related to Commerce & Management .Created by Dr Irfana Smadani . This simple but not simplistic and easy to follow 30 minute, lecturer on Introduction to Economics Basic Concepts and Principles Contents of this lecturer are Meaning of Economics, Tyes of Economics, Microeconomica and Macroeconomics, Positve Econmics and Normantive Economics, Central Problem of Economics, Solution To the Central Problem of Economics in diffrent Types of Economics.

Introduction to Economic 30 min Lecturer in Hindi Part - I.Micro Economics/Business Economics Class 11 | Class 12( New Syllabus 2019), C.A CPT as well as this lecturer is also meant for the Subjects & Chapters related to Commerce & Management .Created by Dr Irfana Smadani . This simple but not simplistic and easy to follow 30 minute, lecturer on Introduction to Economics Basic Concepts and Principles Contents of this lecturer are Meaning of Economics, Tyes of Economics, Microeconomica and Macroeconomics, Positve Econmics and Normantive Economics, Central Problem of Economics, Solution To the Central Problem of Economics in diffrent Types of Economics

Created By Dr Irfana Samdani M.A, Ph.D., (Economics) Department of Eonomics, Hyderabad , Osmania University Hyderabad, Telangana India and Post Doctorate (Economics), ICSSR. New Delhi, India. Today topic is Introduction to Economics Basic Concepts and Principles

Before studding economic we will also try to understand the subject matter of economic. Economic is the oldest discipline and with the time the study of economic is becoming the need of life. As per Professor Samuelson “Economics is the oldest of the arts, the newest of the science, indeed the queen of social science.” Economic knowledge is essential to understand the society and social welfare. The aim of Economic is human development, its raises the standard of living and in turn increase the welfare of mankind. The knowledge of economics is essential for, business executive. Business executive must have knowledge of economics concepts, tools and techniques to take business decision. In ancient and medieval times economics is used to call Political Economy Since then Economics has developed as the most logical social science the functions of at that time the state were limited to maintain law and order, peace and security. The state also undertake some social welfare functions like provision of relief during the crop failure provision of public utility service etc, In order to perform these functions, the state used to collect revenue and to spend it in such a manner so as to promote the social welfare. Following this approach Indian renowned statement Chanakya or Kaustilya in Arthashastra he examine both kind of activities i.e Economic and Political. It is important to know that the word “Economics” or “Economy” in English language has its origin from two Greek word Okios (Household) and Nemein (Management). This means economics is nothing but managing a household, using the limited money or resources a household has.( remember this it might ask in exam) The origin of the term economics could be treated to the work of Great Greek Philosopher Aristotle who confined the study of economics to the Management of Household and the Statecraft, Acquiring, Guarding and Making Proper use of Wealth. The subject matter of economic teaches the people how to earn livelihood and spend it and when we study this aspect of economy we call this social sciences as the study of economy. Thus economics is the study of the allocation of scarce resources to meet unlimited human wants For example we will live in a society or community if we see around we find every human being doing some work or business Like teacher works in school, doctor give services in hospital, shopkeeper work in shop. The reason for doing this work is simple because man need bread to eat cloth to were and shelter or home to live besides medicine and education in other words wants of a man are unlimited to fulfill this wants he does efforts by doing efforts he get income or wealth and with this earned income he satisfied his want hence economic is a science which satisfied human want or economics is a science which studies the circle of wants efforts and satisfaction. When we earn income we will spend it on purchasing of different commodities, like food clothing and shelter etc when we study this human behavior we call it economy. The basic problem of economics is scarcity of resources means limited resources. Here what is limited resources, limited resources is income. Why we study economic the basic reason is scarcity. Basically human being have unlimited wants and our income is limited to satisfied that wants. One can not satisfied all there wants they have to make the choice among the urgent want and less urgent want. Scarcity means when a particular resource demand is more and its resource supply is less. Because our income is limited and our wants are unlimited then one can all this aspect as income scarcity. For example in a particular area where water supply is less and water demand is more then we call it as resources of water is scarcity or scarcity of water . In an economy petrol demand is more and its supply is less then we call it’s as the resources of petrol is scarce or scarcity of petrol is there in that particular economy. This situation of demand in relation to supply will create economic problem and what do you mean by economic problem. Economic problem is the problem of choice between unlimited wants and limited resources means which have alternative uses. Let’s study the economic problem reasons. They are three reasons for economic problem the first reason is scarcity. As we already discuss that what is the meaning of scarcity its nothing but supply in relation to demand when the demand for a particular resource demand is more and its supply is limited then the problem of scarcity arises. When specks about application of scarcity problem we are not specking about an individual economy. Hear we mean that problem of Scarcity is applied on every economy every organization and every society and every individual. If there is no scarcity of resources the there will no economic problem and there is no need to study the economy at all. The second economic problem is unlimited human wants. Unlimited want means human need are unlimited. As soon as our one want satisfied another want emerges and the new want intensity is more than our first want. But our priorities are more differ than like I have ten liter of water and is felt trusty then I prefer to drink the water than taking the bath with it. Because the intensity of drinking water is more compare to the intensity of taking bath with it. That’s why we say if our need will have equal intensity then we are not supposed to select it. As which want I need to satisfied first. that’s why we say the human wants have differ in intensity and human being try to satisfied those want which have higher intensity. The third economic problem is alternative uses. We have already discuss that our resources are scare and with hat it have alter native uses also. For example if we have fuel like petro and diesel with which we can drive a car and can also run generator as well we can use it to run machinery So because the available resource have multiple uses it’s become very difficult to decide where we have to use these resources. So hear alternative uses mean different use of resources. We have to make the choice between less urgent want and more urgent want to satisfy our need because our resources are limited. With this I stop this lecture and it will continue in Part- 2 of Introduction to Economy. Where we discuss the Central Problem of Economics.

Created By Dr Irfana Samdani M.A, Ph.D., (Economics) Department o economics, Hyderabad , Osmania University Hyderabad, Telangana India and Post Doctorate (Economics), ICSSR. New Delhi, India. Today topic is Introduction to Economics Basic Concepts and Principles Before studding economic we will also try to understand the subject matter of economic. Economic is the oldest discipline and with the time the study of economic is becoming the need of life. As per Professor Samuelson “Economics is the oldest of the arts, the newest of the science, indeed the queen of social science.” Economic knowledge is essential to understand the society and social welfare. The aim of Economic is human development, its raises the standard of living and in turn increase the welfare of mankind. The knowledge of economics is essential for, business executive. Business executive must have knowledge of economics concepts, tools and techniques to take business decision. In ancient and medieval times economics is used to call Political Economy Since then Economics has developed as the most logical social science the functions of at that time the state were limited to maintain law and order, peace and security. The state also undertake some social welfare functions like provision of relief during the crop failure provision of public utility service etc, In order to perform these functions, the state used to collect revenue and to spend it in such a manner so as to promote the social welfare. Following this approach Indian renowned statement Chanakya or Kaustilya in Arthashastra he examine both kind of activities i.e Economic and Political. It is important to know that the word “Economics” or “Economy” in English language has its origin from two Greek word Okios (Household) and Nemein (Management). This means economics is nothing but managing a household, using the limited money or resources a household has.( remember this it might ask in exam) The origin of the term economics could be treated to the work of Great Greek Philosopher Aristotle who confined the study of economics to the Management of Household and the Statecraft, Acquiring, Guarding and Making Proper use of Wealth. The subject matter of economic teaches the people how to earn livelihood and spend it and when we study this aspect of economy we call this social sciences as the study of economy. Thus economics is the study of the allocation of scarce resources to meet unlimited human wants For example we will live in a society or community if we see around we find every human being doing some work or business Like teacher works in school, doctor give services in hospital, shopkeeper work in shop. The reason for doing this work is simple because man need bread to eat cloth to were and shelter or home to live besides medicine and education in other words wants of a man are unlimited to fulfill this wants he does efforts by doing efforts he get income or wealth and with this earned income he satisfied his want hence economic is a science which satisfied human want or economics is a science which studies the circle of wants efforts and satisfaction. When we earn income we will spend it on purchasing of different commodities, like food clothing and shelter etc when we study this human behavior we call it economy. The basic problem of economics is scarcity of resources means limited resources. Here what is limited resources, limited resources is income. Why we study economic the basic reason is scarcity. Basically human being have unlimited wants and our income is limited to satisfied that wants. One can not satisfied all there wants they have to make the choice among the urgent want and less urgent want. Scarcity means when a particular resource demand is more and its resource supply is less. Because our income is limited and our wants are unlimited then one can all this aspect as income scarcity. For example in a particular area where water supply is less and water demand is more then we call it as resources of water is scarcity or scarcity of water . In an economy petrol demand is more and its supply is less then we call it’s as the resources of petrol is scarce or scarcity of petrol is there in that particular economy. This situation of demand in relation to supply will create economic problem and what do you mean by economic problem. Economic problem is the problem of choice between unlimited wants and limited resources means which have alternative uses. Let’s study the economic problem reasons. They are three reasons for economic problem the first reason is scarcity. As we already discuss that what is the meaning of scarcity its nothing but supply in relation to demand when the demand for a particular resource demand is more and its supply is limited then the problem of scarcity arises. When specks about application of scarcity problem we are not specking about an individual economy. Hear we mean that problem of Scarcity is applied on every economy every organization and every society and every individual. If there is no scarcity of resources the there will no economic problem and there is no need to study the economy at all. The second economic problem is unlimited human wants. Unlimited want means human need are unlimited. As soon as our one want satisfied another want emerges and the new want intensity is more than our first want. But our priorities are more differ than like I have ten liter of water and is felt trusty then I prefer to drink the water than taking the bath with it. Because the intensity of drinking water is more compare to the intensity of taking bath with it. That’s why we say if our need will have equal intensity then we are not supposed to select it. As which want I need to satisfied first. that’s why we say the human wants have differ in intensity and human being try to satisfied those want which have higher intensity. The third economic problem is alternative uses. We have already discuss that our resources are scare and with hat it have alter native uses also. For example if we have fuel like petro and diesel with which we can drive a car and can also run generator as well we can use it to run machinery So because the available resource have multiple uses it’s become very difficult to decide where we have to use these resources. So hear alternative uses mean different use of resources. We have to make the choice between less urgent want and more urgent want to satisfy our need because our resources are limited. With this I stop this lecture and it will continue in Part- 2 of Introduction to Economy. Where we discuss the Central Problem of Economics.

!!A SolUtiONz To ANy PRoBzzz!!
A Girl & A Boy Crossing a Bridge,
The Boy was kind of Scared, So He asked Her:
"Baby Hold My Hand so that;
You don't fall In to the River..♥ !! :(

...Girl Said:
No.., U Hold My Hand...!!

"Wat's the Difference??"
The Boy Asked

Girl Said:
There's A Big Difference, Like This:

"If I hold Ur Hand & Something Happens to Me;
Chances are that I may Let Ur Hand Go..=(
But If U Hold My Hand, I know for Sure that;
No Matter what Happens,
You will Never Let My Hand Go..!!" ♥ =)...:)

HOW TO ACQUIRE THE LEADERSHIP QUALITIES

"Some of the most talented people are terrible leaders because they have a crippling need to be loved by everyone."

James Schorr.

Leadership is nothing but the quality which makes a person stands out different from other ordinary employees. It is associated with such a person who has aggressiveness in speech and action, love for the employees, and who can handle pressure under different circumstances and a person who is always ready to fight for the rights of employee. A leader is useless without followers. It is the followers who make a person as a leader and if required overthrow him.


Leaders play a critical role during change implementation, the period from the announcement of change through the installation of the change. During this middle period the organization is the most unstable, characterized by confusion, fear, loss of direction, reduced productivity, and lack of clarity about direction and mandate. It can be a period of emotionalism, with employees grieving for what is lost, and initially unable to look to the future.

In addition to forecast and amiability, the characteristics that leader must have are ability to recognize employees' talents, the know-how to make teams work and an open mind.
Leadership does vary to some extent as per the positions i.e. it may be slight different for manager and different for a union leader but the basic qualities of leadership does not change.

1. Good communication skill

Communication is the key to be a great leader. The reason for this is simple: if he possesses the other nine leadership qualities but if he fails to communicate well, he will never be great leader.
What he can do is communicate with others in the organization about what IT can do to move the company forward. In other words, good communication is the key for developing good business relationships. If he can't establish a good business working relationship, he is not going to be that leader, that team player. He will not be able to communicate how IT can add long-term value to the company. The modern leaders must therefore be equipped with good communication skill and use new ways to do effective communication.

2. Honesty

The most valuable asset of a leader is honesty. He must be honest with both his employees and the management committee. Another part of his features is integrity. Once a leader compromises his or her integrity, it is lost. That is perhaps the reason integrity is considered the most admirable trait. The leaders therefore must keep it "above all else."

3. Visionary outlook

Leadership qualities are different for different position. For a CIO (Chief Information Officer) he must be thinking for stabilizing the current business and always looking for future scope of expansion. He has to be able to look beyond where we are today, know where the business is going, and be able to use that vision to move the company forward. Being able to do this is a rare skill indeed.

4. Selecting a good team

A good CIO (Chief Information Officer) although he possesses sound technical skills he assures that the team he selects is efficient enough to back up any skill he lacks. Choosing the best people for such team is a skill. A CIO (Chief Information Officer) after all is a human being and does not have answer for everything. But by working together he creates an atmosphere of mutual trust and respect; the team then always find the best solution.

5. Action speaks louder than words

Managers must be able to put aside their concerns to listen to (and appear to listen to) those around them. As a result, they come know what is going on, and know what is both said, and said between the lines. They have the knack of appearing to know what people need even if those needs are not expressed directly. However, knowing what is going on, and identifying the needs of those around them is not sufficient. The responsive manager also acts upon that knowledge, attempting to help fulfill the needs of employees, superiors, etc. Responsive managers wield influence to solve problems for those around them, often before even being asked.

6. Ability to motivate people around

A good leader must always keep motivating his team mates for good work and should maintain healthy environment. He must give first priority to safety of workers and see that they are not exploited by superiors.

7. Consistency

Leadership effectiveness is impossible without consistency. Every leader has an approach that is unique to them. Don't change your personal style radically after all; it got you in a leadership position. Modify the rough spots but take care not to confound your staff by displaying inconsistency. Your expectations, though subject to modification based on ever-changing business needs, should remain as constant as possible. The business world is confusing enough without you adding unwelcome surprises into the mix. Keep things simple and consistent.

8. Ability to stand against critics

As the success rate increases your critics multiply and become louder. Come to peace with the fact that you will always have a camp of people who critique every decision you make. They are generally the ones who are excellent problem-identifiers rather than problem-solvers. Develop your skills of repelling such critics so that they do not diminish your confidence or enthusiasm.
It takes focus and confidence not to be adversely affected by criticism. Strong leaders learn the art of listening to critics, but ultimately making decisions for the good of the department, not to simply please the critics. The following quote sums it up nicely: "Some of the most talented people are terrible leaders because they have a crippling need to be loved by everyone." As rightly stated by James Schorr.

HOW TO ACQUIRE THE LEADERSHIP QUALITIES

"Some of the most talented people are terrible leaders because they have a crippling need to be loved by everyone."

James Schorr.

Leadership is nothing but the quality which makes a person stands out different from other ordinary employees. It is associated with such a person who has aggressiveness in speech and action, love for the employees, and who can handle pressure under different circumstances and a person who is always ready to fight for the rights of employee. A leader is useless without followers. It is the followers who make a person as a leader and if required overthrow him.

Leaders play a critical role during change implementation, the period from the announcement of change through the installation of the change. During this middle period the organization is the most unstable, characterized by confusion, fear, loss of direction, reduced productivity, and lack of clarity about direction and mandate. It can be a period of emotionalism, with employees grieving for what is lost, and initially unable to look to the future.

In addition to forecast and amiability, the characteristics that leader must have are ability to recognize employees' talents, the know-how to make teams work and an open mind.

Leadership does vary to some extent as per the positions i.e. it may be slight different for manager and different for a union leader but the basic qualities of leadership does not change.

1. Good communication skill

Communication is the key to be a great leader. The reason for this is simple: if he possesses the other nine leadership qualities but if he fails to communicate well, he will never be great leader.

What he can do is communicate with others in the organization about what IT can do to move the company forward. In other words, good communication is the key for developing good business relationships. If he can't establish a good business working relationship, he is not going to be that leader, that team player. He will not be able to communicate how IT can add long-term value to the company. The modern leaders must therefore be equipped with good communication skill and use new ways to do effective communication.

2. Honesty

The most valuable asset of a leader is honesty. He must be honest with both his employees and the management committee. Another part of his features is integrity. Once a leader compromises his or her integrity, it is lost. That is perhaps the reason integrity is considered the most admirable trait. The leaders therefore must keep it "above all else."

3. Visionary outlook

Leadership qualities are different for different position. For a CIO (Chief Information Officer) he must be thinking for stabilizing the current business and always looking for future scope of expansion. He has to be able to look beyond where we are today, know where the business is going, and be able to use that vision to move the company forward. Being able to do this is a rare skill indeed.

4. Selecting a good team

A good CIO (Chief Information Officer) although he possesses sound technical skills he assures that the team he selects is efficient enough to back up any skill he lacks. Choosing the best people for such team is a skill. A CIO (Chief Information Officer) after all is a human being and does not have answer for everything. But by working together he creates an atmosphere of mutual trust and respect; the team then always find the best solution.

5. Action speaks louder than words

Managers must be able to put aside their concerns to listen to (and appear to listen to) those around them. As a result, they come know what is going on, and know what is both said, and said between the lines. They have the knack of appearing to know what people need even if those needs are not expressed directly. However, knowing what is going on, and identifying the needs of those around them is not sufficient. The responsive manager also acts upon that knowledge, attempting to help fulfill the needs of employees, superiors, etc. Responsive managers wield influence to solve problems for those around them, often before even being asked.

6. Ability to motivate people around

A good leader must always keep motivating his team mates for good work and should maintain healthy environment. He must give first priority to safety of workers and see that they are not exploited by superiors.

7. Consistency

Leadership effectiveness is impossible without consistency. Every leader has an approach that is unique to them. Don't change your personal style radically after all; it got you in a leadership position. Modify the rough spots but take care not to confound your staff by displaying inconsistency. Your expectations, though subject to modification based on ever-changing business needs, should remain as constant as possible. The business world is confusing enough without you adding unwelcome surprises into the mix. Keep things simple and consistent.

8. Ability to stand against critics

As the success rate increases your critics multiply and become louder. Come to peace with the fact that you will always have a camp of people who critique every decision you make. They are generally the ones who are excellent problem-identifiers rather than problem-solvers. Develop your skills of repelling such critics so that they do not diminish your confidence or enthusiasm.

It takes focus and confidence not to be adversely affected by criticism. Strong leaders learn the art of listening to critics, but ultimately making decisions for the good of the department, not to simply please the critics. The following quote sums it up nicely: "Some of the most talented people are terrible leaders because they have a crippling need to be loved by everyone." As rightly stated by James Schorr.

"Some of the most talented people are terrible leaders because they have a crippling need to be loved by everyone."

James Schorr.

Leadership is nothing but the quality which makes a person stands out different from other ordinary employees. It is associated with such a person who has aggressiveness in speech and action, love for the employees, and who can handle pressure under different circumstances and a person who is always ready to fight for the rights of employee. A leader is useless without followers. It is the followers who make a person as a leader and if required overthrow him.

Leaders play a critical role during change implementation, the period from the announcement of change through the installation of the change. During this middle period the organization is the most unstable, characterized by confusion, fear, loss of direction, reduced productivity, and lack of clarity about direction and mandate. It can be a period of emotionalism, with employees grieving for what is lost, and initially unable to look to the future.

In addition to forecast and amiability, the characteristics that leader must have are ability to recognize employees' talents, the know-how to make teams work and an open mind.

Leadership does vary to some extent as per the positions i.e. it may be slight different for manager and different for a union leader but the basic qualities of leadership does not change.

1. Good communication skill

Communication is the key to be a great leader. The reason for this is simple: if he possesses the other nine leadership qualities but if he fails to communicate well, he will never be great leader.
What he can do is communicate with others in the organization about what IT can do to move the company forward. In other words, good communication is the key for developing good business relationships. If he can't establish a good business working relationship, he is not going to be that leader, that team player. He will not be able to communicate how IT can add long-term value to the company. The modern leaders must therefore be equipped with good communication skill and use new ways to do effective communication.

2. Honesty

The most valuable asset of a leader is honesty. He must be honest with both his employees and the management committee. Another part of his features is integrity. Once a leader compromises his or her integrity, it is lost. That is perhaps the reason integrity is considered the most admirable trait. The leaders therefore must keep it "above all else."

3. Visionary outlook

Leadership qualities are different for different position. For a CIO (Chief Information Officer) he must be thinking for stabilizing the current business and always looking for future scope of expansion. He has to be able to look beyond where we are today, know where the business is going, and be able to use that vision to move the company forward. Being able to do this is a rare skill indeed.

4. Selecting a good team

A good CIO (Chief Information Officer) although he possesses sound technical skills he assures that the team he selects is efficient enough to back up any skill he lacks. Choosing the best people for such team is a skill. A CIO (Chief Information Officer) after all is a human being and does not have answer for everything. But by working together he creates an atmosphere of mutual trust and respect; the team then always find the best solution.

5. Action speaks louder than words

Managers must be able to put aside their concerns to listen to (and appear to listen to) those around them. As a result, they come know what is going on, and know what is both said, and said between the lines. They have the knack of appearing to know what people need even if those needs are not expressed directly. However, knowing what is going on, and identifying the needs of those around them is not sufficient. The responsive manager also acts upon that knowledge, attempting to help fulfill the needs of employees, superiors, etc. Responsive managers wield influence to solve problems for those around them, often before even being asked.

6. Ability to motivate people around

A good leader must always keep motivating his team mates for good work and should maintain healthy environment. He must give first priority to safety of workers and see that they are not exploited by superiors.

7. Consistency

Leadership effectiveness is impossible without consistency. Every leader has an approach that is unique to them. Don't change your personal style radically after all; it got you in a leadership position. Modify the rough spots but take care not to confound your staff by displaying inconsistency. Your expectations, though subject to modification based on ever-changing business needs, should remain as constant as possible. The business world is confusing enough without you adding unwelcome surprises into the mix. Keep things simple and consistent.

8. Ability to stand against critics

As the success rate increases your critics multiply and become louder. Come to peace with the fact that you will always have a camp of people who critique every decision you make. They are generally the ones who are excellent problem-identifiers rather than problem-solvers. Develop your skills of repelling such critics so that they do not diminish your confidence or enthusiasm.

It takes focus and confidence not to be adversely affected by criticism. Strong leaders learn the art of listening to critics, but ultimately making decisions for the good of the department, not to simply please the critics. The following quote sums it up nicely: "Some of the most talented people are terrible leaders because they have a crippling need to be loved by everyone." As rightly stated by James Schorr.