ICSE Class 12 Economics — Chapter Summary

Economics studies the use of scarce resources at two levels: the individual level and the level of the whole economy. Scarcity means lack of availabilities, so resources are not enough to satisfy all wants. Resources are goods and services used to produce other goods and services, and they are calle

Demand is the desire for a commodity backed by purchasing power. A want becomes demand only when it is linked with price and time. Demand is a flow concept, so it is expressed per unit of time. The chapter explains how demand is measured, what affects it, why the demand curve slopes downward, and ho

Elasticity of demand measures how strongly quantity demanded changes when price, income, or the price of another related commodity changes. Price elasticity is the main part of the chapter and it ranges from zero to infinity. Demand can be perfectly inelastic, inelastic, unit elastic, relatively ela