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प्रश्न
Define demand. Name the factors affecting market demand.
Name the factors affecting demand for a good by an individual.
उत्तर
Demand refers to the desire to buy a good backed with sufficient purchasing power and the willingness to spend.
Factors determining the market demand of a commodity:-
1. Own price of good:- Assume that other things remain constant, an increase in the price of a good will decrease the demand for a good, and a decrease in the price of a good will increase the demand for a good. There is an inverse relationship between the price of a good and the demand for a good.
2. Price of other goods:- Demand for a commodity is influenced by a change in the price of other goods. When the price of one good falls, it becomes cheaper in relation to another good.
If there is an increase in the price of the substitute good coffee, then the demand curve for tea shifts to the right. On the other hand, if there is a decrease in the price of the substitute good coffee, the demand curve for tea shifts to the left even when its price is constant.
If there is an increase in the price of a good, then the demand for another good will decline. So, the demand curve shifts parallel to the left. On the other hand, if there is a decrease in the price of a good, then the demand for another good will increase and so the demand curve shifts parallel to the right.
3. Income of consumers:- A change in income causes a change in demand for good based on the variety of goods available in the market. There will be an increase in the demand for normal goods with a rise in income level. On the other hand, the demand will decrease for inferior goods with an increase in income.
4. Consumer's tastes and preferences:- Assume that other things remain constant, if consumers have more preference for a good than other goods, then the demand for those goods will increase. On the other hand, if consumers have no preference for a good than other goods, then the demand for those goods will decrease.
5. Population size:- An increase or decrease in population size will influence the demand for goods in the market. There is a positive relationship between the size of population and the demand for a good.
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संबंधित प्रश्न
When the income of the consumer falls the impact on a price-demand curve of an inferior good is: (choose the correct alternative)
a. Shifts to the right.
b. Shifts of the left.
c. There is upward movement along the curve.
d. There is downward movement along the curve
If due to fall in the price of good X, demand for good Y rises, the two goods are : (Choose the correct alternative)
a. Substitutes
b. Complements
c. Not related
d. Competitive
Demand for electricity is elastic.
Fill in the blank with appropriate alternatives given below:
Market demand is an aggregate of purchasing by _________ buyers.
State whether the following statement is TRUE and FALSE
Demand curve slopes upward from left to right.
Define or explain the following concept:
Derived demand
Answer the following question
What do you mean by demand?
State whether the following statement is True or False:
Demand for luxurious goods is elastic .
Good X and Good Y are substitute goods. If price of Good X increases, discuss briefly its likely impact on the demand for Good Y.
Answer the following question:
Elaborate the law of demand, with the help of a hypothetical schedule.
Law of demand states the ______ relationship between price and quantity demanded.
From the set of statements given in Column A and Column B, choose the correct pair of statement:
| Column A | Column B |
| 1. Reduction of pollution | (a) Microeconomics |
| 2. Problems due to unemployment | (b) Microeconomics |
| 3. Shift in the demand curve | (c) Microeconomics |
| 4. Government expenditure on building of roads | (d) Microeconomics |
Are the concepts of demand for domestic goods and domestic demand for goods the same?
What will be the effect on equilibrium price and equilibrium quantity when income increases in case of normal goods?
Which of the following statements is true?
Which of the following statements is correct with respect to the correction of Excess Demand?
Read the following news report and answer the Q.97-Q.100 on the basis of the same:
The quantity of a commodity that a consumer is willing to buy and is able to afford, given the prices of goods and the consumer's tastes and preferences is called demand for the commodity. Whenever one or more of these variables change, the quantity of the good Chosen by the consumer is likely to change as well. The relation between the consumer's optimal choice of the quantity of a good and its price is very important and this relation is called the demand function. Thus, the consumer's demand function for a good gives the amount of the good that the consumer chooses at different levels of its price when the other things remain.
The price elasticity of demand for a good depends on ______ and ______ of the good.
"Market demand curve is constructed by horizontally summing all the individual's demand curves at each and every price." Choose the correct option for the above-mentioned statement.
Which of the following is the reason behind the downward slope of demand option?
