Advertisements
Advertisements
प्रश्न
State the law of demand.
उत्तर १
The law of demand states the inverse relationship between the price and quantity demanded of a commodity. According to this law, other things being equal, when the price of commodity increases, its demand falls and when price falls, demand increases. Note that, law of demand indicates only the 'direction' of change and not the 'magnitude' of change in demand. Further, there is no proportionate relationship between price and demand. If price of a commodity rises by 20%, its demand may fall by any proportion (i.e. by more or less than 20%). Law of demand, thus, is a qualitative concept as it does not indicate the magnitude of change in demand. It is important to note here that law of demand states the effect of change in price on demand and not the effect of change in demand on price.
- According to Marshall, "The amount demanded increases with a fall in price and diminishes with a rise in price."
- According to Bilas, "The law of demand states that other things being equal, the quantity demanded per unit of time will be greater, lower the price and smaller higher the price."
उत्तर २
The law of demand states that, other things being equal, there is an inverse relation between change in price of a good and the consequent change in demand for that good.
APPEARS IN
संबंधित प्रश्न
Briefly explain any two reasons for the occurrence of the law of demand.
State with reason whether you agree or disagree with the following statement.
There is an inverse relationship between price and demand.
Increase in demand is caused by
Explain the law of demand and its exceptions.
Write a statement of the Law of Demand.
State with reason whether you agree or disagree with the following statement :
When price of Giffen goods fall, the demand for it increases.
The following table shows the demand schedule for 3 consumers in a market.
| Price in (Rs) | Consumer 1 Demand in (kgs) | Consumer 2 Demand in (kgs) | Consumer 3 Demand in (kgs) | Market Demand |
| 10 | 1 | 2 | (i) ______ | 6 |
| 8 | 2 | (ii) ______ | 4 | 9 |
| 6 | 3 | 4 | 5 | 12 |
| 5 | 4 | 5 | 6 | (iii) ______ |
Based on the above hypothetical schedule answer the following questions.
- What is the demand of Consumer 3 priced at Rs 10 (i)
- What is the demand of Consumer 2 priced at Rs 8 (ii)
- Calculate the total market demand priced at Rs 4 (iii)
- From the above given table examine the relationship between price and demand.
- Mention any one exception to the law of demand.
Any statement about demand for a good is considered complete only when the following is/are mentioned in it:
When at a price of ₹ 5 per unit of a commodity, A's demand is for 11 units, B's demand is for 14 units and C's demand is for units (assuming that there are only three consumers in the market), the market demand is ______.
Giffen goods are richman's goods
If prices of cars rise, many people may put off buying a new car. So the demand for petrol will fall.
If a good is inferior good, then purchases of that good will decrease when ______.
What is meant by the income effect of a fall in the prices of a commodity?
The following table shows the amount of sugar bought by a household at different prices:
| Period | Price (₹ per kg) | Amount Bought (kg) |
| Jan. 2000 | ₹ 15 | 4 |
| Feb. 2000 | ₹ 16 | 5 |
Does the behaviour of household contradict the law of demand? Give reasons in support of your answer.
State whether the following statement is true or false. Give reasons.
The law of demand states a direct relationship between price and demand.
