Indexation Definition.

The Indexation Definition is the rate at which the prices of a basket of goods and services changes over time. The Indexation Definition is used to measure inflation. What is indexing for inflation? Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power … Read more

How the Unit of Production Method Works.

The unit of production method is a way of allocating the cost of a long-lived asset, such as a piece of machinery, over the number of units of output that it produces. The calculation is based on the assumption that the asset will continue to be used until it reaches the end of its useful … Read more

What is the law of supply and demand?

The definition of the law of supply and demand is the relationship between the demand for a product in the market and the quantity supplied of said product with its corresponding price. For the concept of the law of supply and demand to be fulfilled as such, it is essential that market conditions are totally … Read more