Demand Analysis & Elasticity of Demand Commerce YouTube Lecture Handouts Part 1
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Demand Analysis & Elasticity of Demand Commerce
Concept of Demand
- The demand for a commodity is the quantity of the commodity which the consumer is willing to buy at a certain price during any particular period of time.
- In economics, demand means effective demand which means there should be desire to own the good, sufficient money to buy it and willingness to spend the Demand and Price money.
Factors Affecting DEMAND & DEMAND Function
Law of Demand
The law of demand states that there is an inverse relationship between price and quantity bought of a commodity, ceteris paribus.
Slope of Demand Curve
The demand curve slopes downward because of:
- Law of diminishing marginal utility (as given by Marshall) ,
- Income effect,
- Substitution effect, and
- New consumers creating demand.
Demand Schedule & Demand Curve
✍ Manishika