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प्रश्न
State and explain the law of demand.
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उत्तर
The law of demand was introduced by Prof. Alfred Marshall in his book, ‘Principles of Economics’, which was published in 1890. The law explains the functional relationship between price and quantity demanded.
According to Prof. Alfred Marshall, “Other things being equal, the higher the price of a commodity, the smaller is the quantity demanded, and the lower the price of a commodity, the larger is the quantity demanded.” In other words, other factors remaining constant, if the price of a commodity rises, demand for it falls; and when the price of a commodity falls, demand for it rises. Thus, there is an inverse relationship between price and quantity demanded. Symbolically, the functional relationship between demand and price is expressed as:
Dx = f (Px)
Where D = Demand for a commodity
x = Commodity
f = Function
Px = Price of a commodity
| Price of a commodity ‘x’ (₹) |
Quantity demanded of the commodity ‘x’ (in kgs.) |
| 50 | 1 |
| 40 | 2 |
| 30 | 3 |
| 20 | 4 |
| 10 | 5 |
As shown in the table, when the price of commodity ‘x’ is ₹ 50, the quantity demanded is 1 kg. When the price falls from ₹ 50 to ₹ 40, the quantity demanded rises from 1 kg to 2 kg. Similarly, at a price of ₹ 30, the quantity demanded is 3 kgs, and when the price falls from ₹ 20 to ₹ 10, the quantity demanded rises from 4 kgs to 5 kgs. Thus, as the price of a commodity falls, quantity demanded rises, and when the price of the commodity rises, quantity demanded falls. This shows an inverse relationship between price and quantity demanded.
The X-axis represents the demand for the commodity, and the Y-axis represents the price of the commodity x. DD is the demand curve, which slopes downward from left to right because price and quantity demanded are inversely related.
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संबंधित प्रश्न
| Group 'A' | Group 'B' | ||
| a. | Pen and ink | 1 | Quantity-price |
| b. | Revenue | 2 | Accident |
| c. | Insurable risk | 3 | Transfer income |
| d. | Unemployment allowance | 4 | Short period |
| e. | Reverse repo rate | 5 | Long period |
| 6 | Change in demand | ||
| 7 | Joint demand | ||
| 8 | Quantity * price |
Define demand. Name the factors affecting market demand.
Compare inelastic demand with perfectly inelastic demand.
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
Demand for a good is termed inelastic through the expenditure approach when if (choose the correct alternative)
a) Price of good falls, expenditure on it rises
b) Price of the good falls, expenditure in it falls
c) Price of the good falls, expenditure on it remains unchanged
d) Price of the good rises, expenditure in it falls
Distinguish between ‘increase in demand’ and increase in quantity demanded of a good.
Demand deposits include (choose the correct alternative)
(a) Saving account deposits and fixed deposits
(b) Saving account deposits and current account deposits
(c) Current account deposits and fixed deposits
(d) All types of deposits
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
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.
Give one reason for shift in demand curve.
Explain the following concept:
Effective demand
Fill in the blank using proper alternative given in the bracket:
Perfectly inelastic demand curve is.....................................................
State whether the following statement is true or false.
Perfectly inelastic demand curve is parallel to ‘X’ axis.
Write short answer for the following question.
Explain the Law of Demand.
Fill in the blank using proper alternatives given in the bracket:
Demand for salt is ...............
Fill in the blanks using proper alternatives given in the brackets.
Demand for car and petrol is ____________ de
Write whether the following statement is True or False:
Demand curve has a positive slope.
Write whether the following statement is True or False:
Demand for commodities depends upon various factors.
Write whether the following statement is True or False:
Salt has elastic demand.
Define the concept of demand schedule.
Distinguish between :
Individual demand schedule and Market demand schedule.
Write Explanatory answer.
State and explain the law of demand with its exception.
Fill in the blank with appropriate alternatives given in the bracket:
The law of demand states ________ relation between demand and price.
Explain the following concepts or give definitions.
Demand
Fill in the blank with appropriate alternatives given below:
When less is purchased at the constant price, it is called _______ in demand.
Fill in the blank with appropriate alternatives given below:
Market demand is an aggregate of purchasing by _________ buyers.
Fill in the blank with appropriate alternatives given below:
Indirect demand is also known as _____________ demand.
State whether the following statement is TRUE and FALSE
Demand curve slopes upward from left to right.
State whether the following statement is TRUE and FALSE
Desire means demand.
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 and FALSE
Individual demand is a demand by single buyer.
Define the following concept:
Derived demand
Define or explain the following concept:
Direct demand
Give reason or explain the following statement.
Increase in demand indicates a rightward shift in the demand curve.
Give reason or explain the following statement.
Demand curve slopes downward from left to right.
Give reason or explain the following statement.
Demand for factors of production is derived demand.
Distinguish between desire and demand.
What do you mean by demand?
Do you agree with the following statement? Give reason
Many factors influence the demand for a commodity.
State whether the following statement is True or False:
Demand for luxurious goods is elastic .
Answer the following question.
Discuss the relationship between the income of the consumer and demand for a commodity with respect to normal goods, inferior goods, and necessities.
Distinguish between substitute goods and complementary goods, with examples.
If the income of a consumer increases, discuss briefly its likely impact on the demand for a inferior good, Good X.
Answer the following question:
Elaborate the law of demand, with the help of a hypothetical schedule.
In case of ______ supply curve is a vertical straight line parallel to Y-axis.
If the price of good X rises and it leads to an increase in demand for good Y, both are ______ goods.
We say that there is a decrease in demand when ______
Which of the following points are related to the 'Paradox of Thrift'?
Are the concepts of demand for domestic goods and domestic demand for goods the same?
Identify the correct pair of items from the following Columns I and II:
| Column I | Column II |
| (1) Utility | (a) Bread and butter |
| (2) Normal Goods | (b) Rise in price |
| (3) Contraction in demand | (c) Capacity of a commodity to satisfy human wants. |
| (4) Complementary goods | (d) Positively related |
If the increase in demand is greater than the increase in supply, then equilibrium price will ______
Identify the correct pair of items from the following Columns I and II:
| Column I | Column II |
| (1) Budget Line | (a) Normal goods |
| (2) Bajra | (b) Inferior goods |
| (3) Consumer equilibrium | (c) Luxurious goods |
| (4) Elastic Demand | (d) M = Px*x + py*y |
What will be the effect on equilibrium price and equilibrium quantity when income increases in case of normal goods?
Area under MC curve is equal to:
Which of the following statements is true?
Identify the two cost curves which start from the same point on the Y-axis.
Which of the following is correct?
Which of the following statements is true?
Identify the market form which has indeterminate demand curve:
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.
What is meant by the contraction of 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.
Which of the following statement is true?
The demand curve of a firm under monopoly is ______
"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?
When the price of the commodity has changed the demand for the commodity changes in ______
If there is no change in the demand for commodity X, even after a rise in its price, then its demand is ______
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.
The demand for Coca-cola is ______ in the present times.
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.
The demand. for coca-cola has ______
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.
______ is the want to buy a product backed by purchasing power.
In an open economy, Aggregate Demand is estimated as:
Demand deposits include:
Identify the correctly matched pair of the items in Column A to that of Column B.
| Column A | Column B | ||
| (1) | Increase in demand for goods | (a) | Leftward shift in the demand curve |
| (2) | Decrease in demand | (b) | Perfectly Elastic Demand |
| (3) | Ed = ∞ | (c) | Increases in the income of the consumer |
| (4) | Downward Sloping | (d) | Income elasticity of Demand |
The figure given below shows the relation between the quantity demanded for the good X and the price of the good Z. What type of goods are X and Z?
Which of the following best describes 'desire' in economics?
Demand must always be expressed along with ______.
“I want a car but do not have money to buy it.” In economics, this statement refers to ______.
Demand for air or sunlight is not considered in economics because ______.
Which of the following is a flow concept associated with demand?
Micro view of demand relates to ______.
