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In economics, a complementary good is a good whose appeal increases with the popularity of its complement. [ further explanation needed ] Technically, it displays a negative cross elasticity of demand and that demand for it increases when the price of another good decreases. [ 1 ]
The main goal of the new model is to re-frame economic problems and set new goals. In this context, the model is also referred to as a "wake-up call to transform our capitalist worldview". [5] In this model, an economy is considered prosperous when all twelve social foundations are met without overshooting any of the nine ecological ceilings ...
Only if the two products satisfy the three conditions, will they be classified as close substitutes according to economic theory. The opposite of a substitute good is a complementary good, these are goods that are dependent on another. An example of complementary goods are cereal and milk. An example of substitute goods are tea and coffee.
A complementary monopoly is an economic concept. It considers a situation where consent must be obtained from more than one agent to obtain a good. In turn leading to a reduction in surplus generated relative to an outright monopoly, if the two agents do not cooperate.
In microeconomics, economic efficiency, depending on the context, is usually one of the following two related concepts: [1] Allocative or Pareto efficiency : any changes made to assist one person would harm another.
Goodhart's law is an adage often stated as, "When a measure becomes a target, it ceases to be a good measure". [1] It is named after British economist Charles Goodhart, who is credited with expressing the core idea of the adage in a 1975 article on monetary policy in the United Kingdom: [2]
Complementary assets are assets that when owned together increase the value of the combined assets. It is defined as “the total economic value added by combining certain complementary factors in a production system, exceeding the value that would be generated by applying these production factors in isolation.” [1] Thus two assets are said to be complements when investment in one asset ...
Economic historian Mark Blaug has called the quantity theory of money "the oldest surviving theory in economics", its origins originating in the 16th century. [1] Nicolaus Copernicus noted in 1517 that money usually depreciates in value when it is too abundant, [2] which is by some historians taken as the first mention of the theory.