Hypothesis of Economics

Economics:
          Economics  is study of how people use the available resources . It explains how the wealth is distributed in society by making use of the resources,how much people work ,how much they spent and how much money they save for future uses.
Principles of Economics:
           In Principle of economics we learned that
          1. In order to get one thing you have to sacrifice another.In order get good  marks in exam we                  have to spend time in preparing for the exam.
          2. Cost is what you pay to get what you need.
          3. Doing best you can do to achieve your objectives in a systematic matter.
          4. People respond to rewards. If I have benefit in doing a certain things then I will based on the                gain and losses.
Supply and Demand:
            Supply is any product  that is available to customers at certain prices by producers on demand.
 Demand is consumer's willingness and ability to buy goods at various prices.
Elasticity:
           Elasticity is a measure of sensitivity of one how one variable responds to change of another variable.Elasticity is of two types
           a) Point Elasticity: 
                        Elasticity at a given point on function.
           b) Arc Elasticity:
                        Average elasticity over a given range of a function.