Demand

It means the quantity of commodities that will be bought at a particular price and not merely desire for it.

Law of Demand:-

A rise in the price of a commodity or service is followed by a reduction and a fall in price is followed by an increase in demand if commodities of demand remain constant.

Demand Schedule:-

There exit at any one time a definite relationship between the market price of a good and quantity demanded of that a good. This relationship between price and price and quantity bought is called demand schedule.

Demand schedule

Price

Quantity Demand.

5

9

4

10

3

12

2

15

1

20

Factors Affecting Demand Curve

  1. Average Income. (As income rise , people increase )

  2. Population (A growth in population increases)

  3. Price Of Related Goods.(Lower Gasoline price raise the demand)

  4. Tastes (Having a new commodities becomes a status symbol)

  5. Special Influences (Special Influences include availability of alternative forms of transportation safety)

Limitation of the Law

  1. Change in taste or Fashion.

  2. Change in income.

  3. Change in Price.

  4. Discovery of substituted.

  5. Anticipatory Change in price.

  6. Commodities used comfort distinction.