Law Of Demand.
Shift In Demand Curve.
Various Reasons For Shift In Demand Curve.
Elasticity Of Demand with example.
important points about elasticity Of Demand.
Points to be Notes.
Answers
1 Ans - The law of demand states that quantity purchased varies inversely with price. In other words, the higher the price, the lower the quantity demanded. This occurs because of diminishing marginal utility.
2 Ans - A shift in the demand curve is when a determinant of demand other than price changes. It occurs when demand for goods and services changes even though the price didn't. ... That means all determinants of demand other than price must stay the same.
3 Ans - In addition to the factors which can affect individual demand there are three factors that can cause the market demand curve to shift: a change in the number of consumers, a change in the distribution of tastes among consumers, a change in the distribution of income among consumers with different tastes.
Ans - 4 Important of elasticity of demand
The concept of elasticity for demand is of great importance for determining prices of various factors of production. Factors of production are paid according to their elasticity of demand. In other words, if the demand of a factor is inelastic, its price will be high and if it is elastic, its price will be low.