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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.
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संबंधित प्रश्न
Briefly explain any two reasons for the occurrence of the law of demand.
Complete the following statement:
Symbolically, the functional relationship between Demand and Price can be expressed as ______.
Find the odd word
Assumptions to law of demand -
State with reason whether you agree or disagree with the following statement.
There is an inverse relationship between price and demand.
The movement on or along the given demand curve is known as ______
In case of relatively more elastic demand, the shape of the curve is
Distinguish between extension and contraction of demand.
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.
State and explain the law of demand with the help of a hypothetical schedule and graph.
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.
If with the rise in price of good Y, demand for good X rises, the two goods are:
Giffen goods are richman's goods
Identify the correct statement from the following alternatives:
