Economics laws Economics laws Engel's law is an observation in economics stating that, with a given set of tastes and preferences, as income rises, the proportion of income spent on food falls, even if actual expenditure on food rises. In other words, the income elasticity of demand of food is less than 1. ...more on Wikipedia about "Engel's law"
Gibrat's law, sometimes called Gibrat's rule of proportionate growth is a rule defined by Robert Gibrat ( 1904- 1980) stating that the size of a firm and its growth rate are independent. It is a special case of the log normal distribution. ...more on Wikipedia about "Gibrat's law"
Gresham's law is stated as: "Bad money drives good money out of circulation". ...more on Wikipedia about "Gresham's law"
In economics, the Hicks-Marshall laws of derived demand assert that, other things equal, the own-wage elasticity of demand for a category of labor is high under the following conditions: ...more on Wikipedia about "Hicks-Marshall laws of derived demand"
Hotelling's law is an observation in economics that in many markets it is rational for producers to make their products as similar as possible. ...more on Wikipedia about "Hotelling's law"
The iron law of prohibition is a term coined by Richard Cowan which states that "The more intense the law enforcement, the more potent the prohibited substance becomes." This is based on the premise that when drugs or alcohol are prohibited they will be produced only in black markets that are absent under normal market constraints. They are more likely to be adulterated with unknown or dangerous substances. The government cannot regulate and inspect the production process, and harmed consumers have no recourse in law. ...more on Wikipedia about "Iron law of prohibition"
The iron law of wages declares that wages can never rise above the minimum level that will enable the laborer to survive. Any hypothetical increase above this would lead to an increase in population, and then the increased competition will again drive wages down to the minimum. ...more on Wikipedia about "Iron law of wages"
The law of one price is an economic law stated as: "In an efficient market all identical goods must have only one price." ...more on Wikipedia about "Law of one price"
* Iron law of business ...more on Wikipedia about "List of iron laws"
In economics, Okun's Law, named after economist Arthur Okun, describes a relationship between the change in the rate of unemployment and the difference between actual and potential real GDP. In the United States during the period since 1965 or so, Okun's Law can be stated as saying that for every one percentage point by which the actual unemployment rate exceeds the "natural" rate of unemployment, there is a 2 to 4 percent "GDP Gap". That is, unemployment above the inflation-threshold unemployment rate corresponds to real gross domestic product below potential output. ...more on Wikipedia about "Okun's Law"
In economics, Say’s Law or Say’s Law of Markets is a principle attributed to French businessman and economist Jean-Baptiste Say (1767-1832) stating that there can be no demand without supply. A central element of Say's Law is that recession does not occur because of failure in demand or lack of money. The more goods (for which there is demand) that are produced, the more those goods (supply) can constitute a demand for other goods. For this reason, prosperity should be increased by stimulating production, not consumption. In Say's view, creation of more money simply results in inflation; more money demanding the same quantity of goods does not represent an increase in real demand. ...more on Wikipedia about "Say's law"
Verdoorn's Law in economics is relation between the growth of output and the growth of productivity. According to the law faster growth in output increaseases productivity due to increasing returns. ...more on Wikipedia about "Verdoorn's Law"
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