This document provides a summary of key concepts in economics, including: 1) Firms produce goods and services while households consume them in the circular flow of economic activity. 2) Demand and supply determine market equilibrium price and quantity through interactions in product and input markets. 3) Consumer demand is influenced by price, income, wealth, tastes and expectations, while firm supply depends on price and costs. 4) Utility maximization theory explains that rational consumers seek to maximize satisfaction subject to their budget constraint.

1. Economics Analysis for Managerial Applications -Taught By: Ms.Dimple, Assistant Professor FMS Department, NIFT Delhi

17. A Change in Demand Versus a Change in Quantity Demanded To summarize : Change in price of a good or service leads to Change in quantity demanded ( Movement along the curve ). Change in income, preferences, or prices of other goods or services leads to Change in demand ( Shift of curve ).

28. A Change in Supply Versus a Change in Quantity Supplied To summarize : Change in price of a good or service leads to Change in quantity supplied ( Movement along the curve ). Change in costs, input prices, technology, or prices of related goods and services leads to Change in supply ( Shift of curve ).

44. 0 50 100 150 Utils First Slice Second Slice Pizza Marginal utility Total Utility Total and Marginal Utility

47. Total and Marginal Utility

48. Total and Marginal Utility Utility Utility Satiation point Satiation point Marginal utility Total utility Total Utility is maximized when marginal utility is zero.

59. Addictive Behavior: Utility in Hindsight Utility Disutility Quantity of binge purchases Marginal utility perceived at the time Marginal utility perceived later Point where all money has been spent

68. Forecasting-related challenges Producing the forecast Creating an accurate and timely forecast Using the forecast Managing forecast uncertainty

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