Forex arbitraging is defined as making a grain or profit by buying and selling of currencies which are priced wrong. The market in which trader buys the forex has a lower quote and the market in which the currency is sold has a higher quote for the same currency which allows the trader to make profits out of that transaction. As an example, if a person buys US Dollars for Great Britain Pounds and sells [...]

Income Hypothesis is mainly about observing consumers’ behavior proportional to their income. This can be divided into three main categories. Permanent Income Hypothesis (PIH) This was formulated by the economist Milton Friedman and it explains that changes in consumption behaviors are not predictable, as they are based on long-term income expectations of customers. The key conclusion is short-term changes in income have a very little effect on consumer spending behavior. In permanent income hypothesis model, [...]

Foodflation has become a buzz in the world economy and said to have major impact on developing nations. What is this foodflation? What is happening to world food market? These are some of the common questions hold by people.

The demand for one currency into another decides the fluctuation of foreign exchange transactions. The foreign exchange markets have many different participants who differ from scale of their operations as well as objectives and methods of carrying away the functions.

Consumer Surplus is defined as the difference between the price a customer is willing to pay for a product and the price that he actually ends up paying. When a consumer gets to purchase a good at a lower price than the price he is willing to pay, he gets more benefits creating a consumer surplus. As an example, for a necessity like food, the consumer would be willing to pay a higher price as it is a necessity. [...]