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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
The demand of a commodity, when measured through the expenditure approach, is inelastic. A fall in its price will result in : (choose the correct alternative)
(a) No change in expenditure on it.
(b) Increase in expenditure on it.
(c) Decrease in expenditure on it.
(d) Anyone of the above.
Any statement above demand for a good is considered complete only when the following is/are mentioned in it. ( choose the correct alternative)
a) Price of the good
b) Quantity of good
c) Period of time
d) All of the above
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
State the factors leading to fall in demand by an individual consumer
Give reason or Explain the following statement :
Demand for habitually used goods is inelastic.
Write whether the following statement is True or False:
Demand for commodities depends upon various factors.
Fill in the blank with appropriate alternatives given below:
When the price of petrol goes up, demand of cars will ___________.
State whether the following statement is TRUE and FALSE
When demand increases, the demand curve shifts to the left.
State whether the following statement is TRUE and FALSE
Law of demand is explained by Prof. Robbins.
State whether the following statement is True or False:
Demand for luxurious goods is elastic .
Distinguish between normal goods and inferior goods, with examples
Answer the following question:
Elaborate the law of demand, with the help of a hypothetical schedule.
Which of the following points are related to the 'Paradox of Thrift'?
Which of the following can cause an increase in demand:
Identify the two cost curves which start from the same point on the Y-axis.
Identify the market form which has indeterminate demand curve:
Which of the following statement is true?
"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.
Read the case study and answer the questions 97 to 100:
The Coca-Cola Company is an American multinational beverage company, with its headquarters in Atlanta, Georgia. The first company that conducted its operation in the soft drink industry was Coca-Cola. It is the world's largest non-alcoholic beverage company serving more than 1.8 billion consumers daily in more than 200 countries. It has a portfolio of more than 3,500 (more than 800 no or low-calorie) products. However, the company is best known for its flagship product Coca-Cola which was originally intended to be a patented medicine invented in 1886 by pharmacist John Smith Pemberton in Columbus, Georgia. The Coca-Cola products can be termed as normal goods and in August 2019 Coca-Cola introduced a new product into the market, that is, zero sugar where the demand has increased for the product in the market.
According to the council of the Australian Food Technology Association and Institute of Food Science and Technology, the Australian nonalcoholic beverages industry has been growing steadily, with a 2.3 percent increase in overall production in the year 2000 which amounts to 2.25 billion liters. However, in the re~ent years, sales of customary carbonated soft drinks have dropped as more and more customers become health conscious and move away from high-calorie sugary drinks. Soft Carbonated drinks. and other alcohol-free beverage manufacturers have also sensed the effects of intensifying competition from private-label soft drink makers. Nevertheless, sales of greater value energy and sports drinks have driven profit generation in the industry.
What has happened to the demand of zero sugar carbonated drinks?
Assertion (A): Demand deposits are not legal tenders.
Reason (R): They are with the bank, so only can be used as a legal tender when cheques are issued for the transfer.
