The problem of how to produce refers to selection of techniques to be used for production of goods and services. By technique we mean labour or capital intensive techniques. That is knowing the input combination to be used.
The visible trade balance is that part of the balance of trade figures that refers to international trade in physical goods, but not trade in services. It is also known as balance of payment in the current account balance.
A shift in the demand curve means that other determinants of demand other than price causes demand to change. They include changes in tastes, population, income, prices of substitute or complementary goods, and expectations about future conditions and prices. This is usually an indication of a change in demand. A change in demand describes a shift in consumer desire to purchase a particular good or service, irrespective of the price difference.
The law of supply states that there is a direct relationship between the quantity supplied and the price of a commodity. If a change in price causes a change in the quantity supplied, this means the supply is elastic.
In Utility Maximization, the consumers decide to spend their money so that the amount spent on each product purchased yields the same amount of extra marginal utility. The consumer would maximize its utility when marginal utility equals the price paid for the commodities.
The demand curve is downward sloping, indicating the negative relationship between the price of a product and the quantity demanded. This means that, consumers consume more or less of the commodity. The consumer will be unwilling to pay for a commodity whose total utility is declining
Joint demand is When two or more goods are jointly demanded to satisfy single need. Example demand for cars and petrol, pens and ink, tea and sugar, etc, computers and software. If the demand for car decreases, it will also affect the demand for petrol.