Tutor profile: Kushal S.
What do you understand by inflation?
Inflation in very basic language means the increase in the prices of goods. It means that the cost of living has increased in the society. In a high inflation economy, a person has to beat the rate of inflation for better standard of living. So, if your salary increases by 5% but the rate of inflation is 6% - you have effectively become worse off. Although you would be able to spend more but all that increased spending would be compensated by increased price of goods and in turn you would be able to buy less.
Subject: Corporate Finance
What's the difference between assets and liabilities?
Assets are anything that are supposed to provide future monetary benefits like plants, machinery, land. Liabilities, on the hand, are obligations that need to be paid into the future like debt etc.
What do you understand by price elasticity?
First of all, let us demand by understanding elasticity - it is a measure of sensitivity of a variable with respect to another variable. Price elasticity refers to the sensitivity of a product's demand with respect to price. If the demand of a product changes significantly when the price changes, it is said to be elastic. While if does not, then the demand is said to be inelastic. Hence, demand for cars is elastic because it decreases with the increase in price. On the other hand insulin is inelastic because the demand does not change with price.
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