Category: Essays

The concept of elasticity of substitution was originally introduced by J.R. Hicks in his book ‘The Theory of Wages’ in 1932. The ratio in which the two goods are combined changes when, the process of substitution takes place.Like the substitution affect, elasticity of substitution can be measured at any point on an indifference curve. It is the extent to which one good can be substituted for another (as a result of a change in their price-ratio), if the consumer has to remain on the same indifference curve or in other words, on the same level of satisfaction. ADVERTISEMENTS: The elasticity of goods substitution (es) is the ratio of the proportionate change in the combination in which the two goods are to a given proportionate change in their marginal rate of…

Wells are the common sources of water supply in villages so they should be disinfected regularly to keep the water fit for drinking and domestic purposes.Previously potassium permanganate was used for disinfecting wells but now instead of potassium permanganate, bleaching powder is used for this purpose because it is cheap and quite effective disinfectant.For disinfecting the well following steps are involved: ADVERTISEMENTS: (i) Measurement of well for its depth.(ii) Amount of water in the well.(iii) Amount of bleaching powder required. ADVERTISEMENTS: (iv) Mixing of bleaching powder.(v) Addition of bleaching powder solution in the well.(vi) Ortho-toludine test. (i) Measurement of Well: First of all, the diameter of the well is measured and then its depth is measured in meters by a rope tied with some weight. The rope is lowered in…

The short run equilibrium is characterised by two basic features. First, the average and marginal cost curves are U-shaped. Second, entry or exit of firms is insignificant so that abnormal profits or losses persist in short run. The short run average and marginal cost curves, with their typical U-shapes caused by the inability of the firms to increase some of their fixed factors further, contribute to sustain abnormal profits or losses.They are denoted as SAC (short run average cost), SAVC (short run average variable cost) and SMC (short run marginal cost) instead of the general notation of AC, AVC and MC. Under these two features, the equilibrium of a competitive firm in short run, thus, may involve either abnormal profits or losses or even normal profits as shown in Figures…

Elasticity of demand is defined as the responsiveness of demand to a change in one of its determinants while the other determinants remain unchanged. Some of the elasticities axe defined below. 1. Price Elasticity: It is defined as the responsiveness of demand to a change in price, while other things remain unchanged. ADVERTISEMENTS: Price elasticity is measured as a ratio of the proportionate change in demand to a proportionate change in price. Thus, price elasticity of demand, Ep° is given aswhere, Q2 = quantity demanded at price P2 Ql = quantity demanded at price P1?Q = change in quantity demanded due to a change in price (?P) ADVERTISEMENTS: Q = initial level of demand at initial price PPrice elasticity will be discussed in detail later in the section. 2. Income…

Difference between “Arc Price Elasticity” and “Point Price Elasticity” of Demand are as follows: (i) Arc price elasticity: It is slightly different from the price elasticity as defined above. We have seen that price elasticity is given asHere, changes in demand and price are taken to be proportionate changes to their original levels, Q1 and P1 respectively. If the points are separated by a larger distance on the demand curve, it is customary to express the change in demand and price as a proportion of their average values rather than of their original values. (ii) Point price elasticity: Point price elasticity refers to the price elasticity at a point on the demand curve. In other words, it accounts for the price elasticity of demand in the close proximity of the…

Legal Provisions of Section 366 of Code of Criminal Procedure, 1973 (Cr.P.C.), India.Sentence of Death to be Submitted by Court of Session for Confirmation: ADVERTISEMENTS: The decision of the Court of Session awarding the sentence of death is not final unless it is confirmed by the High Court. Therefore, the Sessions Court is required to make a reference to the High Court for this purpose.Since death sentence once executed, cannot be revoked, it becomes necessary that a thorough scrutiny of the decision of the trial Court is made and all aspects of the case are examined by the High Court to eliminate any possible error or mistake by the trial Court in reaching that decision.Therefore, when a case of death sentence comes before the High Court for confirmation under a…

Legal Provisions of Section 345 of Code of Criminal Procedure, 1973 (Cr.P.C.), India.Procedure in certain cases of contempt: ADVERTISEMENTS: This section provides for certain kinds or contempts which can be tried summarily by the Court in order to preserve its honour and dignity. The section is applicable to five kinds of contempt’s:—(1) Intentional omission to produce a document by a person legally bound to produce it (Section 175, IPC);(2) Refusal to take oath when duly required to take one (Section 178, IPC);(3) Refusal to answer questions by one who is legally bound to state the truth (Section 179, IPC); ADVERTISEMENTS: (4) Refusal to sign a statement made to a public servant when legally required to do so (Section 180, IPC); and(5) Intentional insult or interruption to a public servant sitting…

Human milk is available to feed the baby a few days after the birth. It is made by the mother’s mammary glands from constituents in the maternal blood and its formation is under control of prolactin and oxytocin hormones of the pituitary.The milk contains protein, fat and carbohydrate which fulfill the requirements of baby for heat and energy as well as for growth and repair of tissue.The human mammary gland consists of about 15 separate milk producing systems which are arranged radially around the nipple. ADVERTISEMENTS: The milk is produced deep to the surface in the milk-producing alveoli. These alveoli lead via series of branching ducts to a main milk duct which opens at the nipple. There are thus 15 openings at the nipple, each leading to its own milk…

In the short-run, total quantity of at least one factor of production remains fixed and quantities of other inputs can be changed. Suppose, in a two input framework, capital is the fixed input and OK amount of capital is employed (see figure 9.8).To show the relation between short run Total Cost curve and the long run Total Cost curve we use a fixed set of isocost lines (represented by a2b2, a3b3 and a5b5) and a particular isoquant map (comprising of isoquants I, II, III only) is used.First, consider isocost line ‘a2b2‘. Given this cost constraints and pre­fixed amount of capital OK, maximum amount of labour to be employed is determined by the point of intersection between KK line and isocost a2b2 (i.e., point ‘n’). ADVERTISEMENTS: This point of intersection shows…

Returns to scale refers to a relationship which shows the degree of change in output caused by change in quantities of all inputs in a fixed proportion. The concept of returns to scale is a long-run concept, because it refers to a case where all inputs are variable.In this context, it is also important to distinguish returns to scale from returns to a factor. Instead of all factors, when a relationship specifies change in output as a result of a given change in quantity of only one factor of production, while keeping the others unchanged, it is termed as returns to a factor.There are Three Types of Returns to Scale: (a) Increasing Returns to Scale: ADVERTISEMENTS: When all inputs are increased by a given proportion and the output increases by…