Question

1. explain the function of demand. 2.explain Geometric method. 3.explain the exceptions to the law of demand. 4.explain total expenditure method. 5.explain consumer budget. 6. explain law of demand with its assumption.​

Answer 1

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1) Demand function is what describes a relationship between one variable and its determinants. It describes how much quantity of goods is purchased at alternative prices of good and related goods, alternative income levels, and alternative values of other variables affecting demand.

2) The Geometric method measures the elasticity of demand at different points on the demand curve and is also known as the Point method of measuring the elasticity of demand

3) Giffen and Veblen goods are exceptions to the Law of Demand. The Law of Demand states that the quantity demanded for a good or service rises as the price falls, ceteris paribus. Therefore, the Law of Demand is an inverse relationship between price and quantity demanded.

4) Under this method, we measure elasticity of demand by examining the change in the total expenditure due to a change in price. Prof. Alfred Marshall evolved the total outlay, or total revenue or total expenditure method as a measure of elasticity.

5) A consumer budget is the actual purchasing potential with which a consumer can purchase a set of two goods, provided their prices. Now, let us contemplate that a customer has only a fixed amount of income to spend on two commodities.

6) The law of demand states that the demand for a product decreases with increase in its price and vice versa; while other factors is at constant. Therefore, there is an inverse relationship between the price and quantity demanded of a product.

hope it was helpful to you

Answer 2

My self Parth kaushik from Meerut

i study in college.. iwiil be ur best friend .. if u want..