Hi ,dear freinds Today we will talk about how you demand and supply. For more information, read the following list below.
What is Demand and Supply
Demand may be defined as desire supported by adequate purchasing power. In the words of Chapman, “demands are the quantitative expressions of preferences.”
In economics, the term demand’ is always used to signify how much of a commodity is purchased at a given price. The technical expression of the concept of demand is that how much of a commodity is purchased at a given price.
The formula for demand and supply.D=f(P). This is What is Demand and Supply.
what are the factors on which demand for a commodity depends?
Demand for a commodity is determined by many factors. An individual consumer’s demand for a commodity is determined by the following factors:
(a) Price of the commodity: Payment of price implies a sacrifice. No consumer will sacrifice for a commodity more than what it is worth to him in terms of utility. If a consumer derives utility worth Rs. 8000 from a pair of shoes, and if the market price of the pair of shoes is more than Rs. 80-00, he will not purchase. At any particular price, there is a definite quantity of the commodity which the consumer will purchase. The quantum of purchase is determined by the utility received in comparison with sacrifice involved. With a fall in price, the sacrifice becomes less and more will be purchased When price rises, sacrifice increases and less will be purchased.
(b) Income of the consumer: The capacity to purchase commodity depends on the income of the consumer. Higher the income lower is the marginal utility of money.
What is a market demand schedule?
Market demand schedule exhibits the picture of a society or group at a particular time. By adding up the demand schedules of all individuals in a market we can draw up a list of different quantities which may be purchased at different prices in the market. Such a list or a table is known market demand schedule.
Rs. 50.00 per unit.
Rs. 40.00 per unit.
Rs. 30.00 per unit.
In accordance with the law of demand, the quantity demanded increases with every decrease in price
Explain the law of demand with the help of a demanding schedule and a diagram?
Demand is a function of price. The law states that when the price of a commodity rises, there occurs a decline in demand. On the other hand, when the price of a commodity declines, the amount demanded increases. In the words of Chapman-“Demands are quantitative expressions of preferences.
The law of demand can be explained with the help of the following schedule :
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