The document defines key concepts related to demand: 1) Desire is a wish to have a commodity, while want is a desire backed by ability and willingness to pay. 2) Demand is an extension of want - it refers to the quantity willing and able to be bought at each price point over a given time period. 3) A demand schedule shows quantities demanded at different price levels, while a demand curve graphs the schedule and has a negative slope.

1. Chapter ---------demand

2. Desire- It means a mere wish to have a commodity.
Want – Desire which is backed by the ability and willingness to satisfy it.
Demand - Demand is an extension to want. It has following characteristics-
i. Willing and able to buy
ii. Always with reference to price
iii. Always with reference to a period of time

3. To sum up-
Demand is the quantity of a commodity that a
consumer is willing and able to buy, at each possible
price during a given period of time.

7. COMBIN
ATIONS
PRICE (RS
)
QUANTI
TY
A 100 0
B 75 25
C 50 50
D 25 75
E 0 100
Demand schedule & curve

8. Individual demand schedule- Individual
demand schedule refers to a tabular statement showing various quantities
of a commodity that a consumer is willing to buy at various levels of price
during a given period of time.

9. Market demand schedule - Market demand
schedule refers to a tabular statement showing various quantities
of a commodity that all consumer are willing to buy at various levels of
price during a given period of time.

10. Individual & market demand curveIndividual & market demand
curve

11. Slope of demand curveSlope of demand curve

24. 2. Income Effect – Income effect refers to the effect on demand when real
income of the consumer changes due to change in price of the given commodity
when price of the given commodity falls it increases the purchasing power ( real
Income ) of the consumer. As a result, he can purchase more of the given
commodity with the same money income

31. Other Factors –
4. Fear of Shortage - Due to fear of shortage in near future people will
purchase even at high prices.
5. Ignorance – Consumer may buy more of a commodity at a higher
price when they are ignorant of prevailing prices in the market.
6. Fashion related goods – Goods related to fashion do not follow law
of demand.
7. Change in Weather – With change in weather demand for certain
commodities also changes , irrespective of change in their price.

36. 1. Does a fall in income have the same effect on demand for the given commodities?
2. “Law of demand is a qualitative statement.” Defend or refute the statement?
3. A New Steel Plant comes up in Jharkhand. Many people who were previously unemployed in the area
are now employed. How will this affect demand curve for black and white TV and colour TV?
4. In order to encourage tourism in Goa, Indian Airlines reduces the airfare to Goa. How will it affect
market demand curve for air travel to Goa?
5. There are train and bus services between New Delhi and Jaipur. Suppose that the train fare between
two cities comes down. How will this affect demand curve for bus travel between the two cities?
6. How is the demand for a good affected by a rise in the prices of other goods? Explain.
7. Why more of a good is purchased when its price falls?
8. When does law of demand fail in the field of consumption? Differentiate between normal good, inferior
good and highly inferior good.
9. Distinguish between demand by an individual consumer and market demand of a good.
10. Due to fall in cost of making bicycle its price has reduced. It will shift the demand curve of bicycles
towards right. Defend or refute the statement.

38. 11. Categorise the following changes as expansion, contraction, increase or decrease in demand
assuming the given commodity is a normal good-
i.When price of a substitute rises.
ii. When price of the given commodity increases.
iii. When income of the consumer increases.
iv. When price of the given commodity is expected to fall in future.
v. When the given commodity becomes a fashion good.
vi. When there is a sudden decrease in population due to an earthquake.
vii. When the price of the given commodity falls.
12. What will be the impact of the following changes on the demand curve of
i. Cars when there is an increase in the price of petrol.
ii. Desktop computers with the increase in the price of laptops.
iii. Bread with increase in its price.
iv. Trousers due to change in preference in favour of jeans.
v. Bajra for a poor person when income of such person rises.
vi. Coffee when price of tea falls.
vii. Petrol if its price is expected to rise in near future