Indian Economy Questions

The law of demand implies that "The higher the price of a good, the lesser the quantity demanded".

For example:

If the rate of a mobile phone increased, the quantity demanded by the customers is decreased.

Another name for false productivity is Spinning your wheels. They use the term for false productivity because your wheels are spinning as you're doing work but you're not going anywhere i.e, making any progress.

Administered prices are prices set by government or firms which are not determined by regular market forces. They do not vary in response to short-run fluctuations in demand and supply conditions.

Examples include price controls and rent controls.

Tennis rackets and ballpoint pens are two independent goods. Since, one doesn't depend on the other.

Microeconomics is concerned with the study of individual firms, households, etc...

A business owned by one person and operates for their benefits is called as Sole Proprietorship or sole trader.

The most important determinant of consumer spending is the level of income.