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Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
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Law of equimarginal utility

Law of equimarginal utility

Introduction : In cardinal utility analysis, consumer's equilibrium is given by law of equimarginal utility.It was given by H.H Hossen ,an Austrian economist .It came to be known as Gossen's second law. It was great law of substitution also .                                                         

Statement : This principle states that to get maximum utility from expenditure of limited income ,the consumer purchases such amount of each commodity that last unit of money spent on each of them affords him the same level of satisfaction or same marginal utility. 

Meaning : The consumer is faced with a choice among different commodities out of his limited income where he would get maximum satisfaction only if he allocates his income on purchase of combinations of such commodities which will give him equal level of satisfaction.  

Assumptions :

a) The marginal utility of Different  commodities are independent of each other and diminish with more and more purchases.                                                                

b) The consumer has limited amount to spend.  

c)The utility is cardinally measurable .       

d)The MU of money remains constant.       

e)The utility of different goods are independent i.e neither complementary nor substitute of each other.                     

Explanation with the help of table.                     

Units of money       MU (apples)    MU(oranges)             

1.                             20.                    16.                         

2.                             18.                    14.                         

3.                             16.                    12.                         

4.                             14.                    10.                         

5.                             12.                      8.                         

6.                             10.                      6.                         

7.                               8.                      4.                         

8.                               6.                      2.                                                                                                    

Here, suppose consumer has 8 rupees which he wants to spend on apples and oranges so that he obtains maximum utility.He starts consuming rupees 1 on apples because it gives him 20 units of satisfaction which is highest compared to oranges.The 2nd ripped is also spend on apples as next highest satisfaction is given by apples i.e 18.The 3rd ruppe is spent on  Banana like wise 4th on apples again (3rd unit of rupees is spent on Banana because 12 is set as constant marginal utility of money) .The consumer will goes on spending rupee by rupee till he spends his 8 units of rupees with him.                                                                      With the income of eight rupees and given prices of apples and bananas, the consumer is in equilibrium by purchasing combination of 3 bananas and 5 apples ,because he is obtaining total utility thereby.  





























































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