when the price
of a good increases, the quantity demanded falls, other things remaining the
same. But, this information is not of much practical use since we know only the
direction of change in the demand for a given change in the price. If we know
the magnitude lf this change, it will help a lot in our decision making. will make an effort to understand the extent to which the
quantity demanded will rise (fall) due to a fall in the income of the consumer.
This involves an analysis of demand sensitivity with respect to prices of goods
and income which helps the business to forecast market trends for the future.
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TYPES OF MICRO ECONOMICS
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