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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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Consumption function

CONSUMPTION FUNCTION

The functional relationship between consumption and income is called as consumption function.In an economy ,consumption is an important component of aggregate demand . Consumption is often studied with the respect of income ,considering income as the important factor of consumption.

Central significance
a)Consumption is positive related to income . Rise in income causes the rise in consumption and fall in income causes the fall in consumption.
b)The increase in income during particular period is not converted into consumption A part from this income is saved also . 
c)There is always some minimum level of C ,even when y is equal to 0 . This is also called as autonomous consumption which leads to the negative savings.

           Income                  Consumption
                 0                               20
               50                               60
             100                             100
             150                             140

 This table reveals that 
a) 20 is the minimum level of Consumption even when income is 0.
b)C is positively related to income.
c)The rate at which consumption increases lags behind the rate at which income increases. This is shown where income increases each time by 50 , consumption increases only by 40.
d) Consumption will always be a straight line considering it to be constant . It is also called as linear consumption.

Slope of consumption indicates the proportion of additional income that goes to consumption. This is measures as ration between increase in consumption and increase in income .It is also refere to as Marginal propensity to consume.
    
              MPC =∆c/∆y

Average propensity to consume is defined as  the ratio between total consumption and total income.
                    APC =C/Y

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