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The concepts of economic theory that are widely used in managerial economics are the following: • Demand and Elasticity of demand. • Demand forecasting. It is concerned with the application of the concepts such as price theory, Law of Demand and theories of market structure and so on. Macroeconomics. The studytheory of the firm; demand theory and estimation; production and cost book is to explain not just the methodology of managerial economics but also. This book presents economic concepts and principles from the perspective of “managerial economics,” which is a subfield of economics that places. Economic theory holds that demand consists of two factors: taste and ability to buy. Taste, which is the desire for a good, determines the willingness to buy theory and analysis to practice of business firms and other institutions.” A common thread runs through all these descriptions of managerial economics which