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प्रश्न
Answer the following question:
Elaborate the law of demand, with the help of a hypothetical schedule.
उत्तर
According to the law of demand, a consumer’s demand shares an inverse relationship with the price of a good and vice-versa, ceteris paribus (other things being constant). In other words, if the income, price of related goods and a consumer’s tastes and preferences remain unchanged, then the demand of a good move opposite to the movement in the price of those goods.
Law of demand can be explained with the help of the following demand schedule.
|
Price of Commodity X(Rs) |
Quantity Demanded of X(units) |
| 5 | 100 |
| 10 | 75 |
| 15 | 50 |
| 20 | 25 |
The schedule shows that as the price of the commodity X increases from Rs 10 to Rs 15, the quantity demanded of X falls from 75 units to 50 units. Thus, there is a negative relationship between demand and price.
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संबंधित प्रश्न
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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.
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