The document discusses the law of demand and elasticity of demand. It defines demand, outlines the determinants of demand, and explains the law of demand which states that quantity demanded decreases when price increases, ceteris paribus. It also discusses demand schedules and curves, exceptions to the law of demand, and the concept of elasticity of demand which measures the responsiveness of quantity demanded to changes in price, income, or the price of related goods. Price elasticity of demand in particular is defined as the percentage change in quantity divided by the percentage change in price.
This document defines demand and discusses the different types of demand. It explains that demand is expressed in relation to price and time period. The key types of demand discussed are individual demand, market demand, ex-ante and ex-post demand, and joint demand. Determinants of demand include price, income, tastes/preferences, prices of related goods, expectations, credit availability, population, income distribution, and government policy. The law of demand and exceptions to it are explained. Movement along and shifts of the demand curve are also summarized.
The document discusses the economic concepts of demand, supply, elasticity and their key determinants and relationships. It provides definitions of demand and supply according to various economists. It explains that demand is determined by price, income, tastes etc. and is inversely related to price. Supply is determined by price of goods, factors of production, technology and is directly related to price. It also discusses elasticity of demand and supply and their measurement.
Best PPT on Chapter Demand from economics for Students.DhruvArora87
The document discusses the concept of demand, including:
- Demand is the quantity of a commodity a consumer is willing and able to buy at a given price over a period of time.
- Individual demand depends on price of the good, income, tastes/preferences, and related goods' prices. Market demand also depends on population size/composition, season/weather, and income distribution.
- Demand functions and schedules show the relationship between quantity demanded and influencing factors. The law of demand states an inverse relationship between price and quantity demanded when other factors remain constant. Exceptions to the law include Giffen goods and necessities.
1) Demand refers to an effective desire backed by both willingness and ability to pay for a good. It is represented through demand schedules and curves which show an inverse relationship between price and quantity demanded.
2) Individual demand is for a single consumer, while market demand is the total demand from all consumers. Market demand curves are created through horizontal summation of individual curves.
3) According to the law of demand, assuming other factors are constant, quantity demanded varies inversely with price - as price increases, quantity demanded decreases, and vice versa. There are some exceptions to this law.
This document discusses the economic concept of demand. It defines demand as the quantity of a good or service that consumers are willing and able to purchase at various price levels. Demand is determined by factors like price, income, tastes, population, and prices of substitutes. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Demand can change due to shifts in the demand curve from changes in these determinants, other than price.
This document discusses key concepts related to demand and elasticity. It defines demand, types of demand, individual and market demand, and determinants of demand. It also covers the demand curve and function, law of demand, demand schedule and exceptions. For elasticity, it defines price, income, and cross elasticity. It discusses types of price elasticity including perfectly elastic/inelastic and unit elastic demand. Finally, it covers methods for measuring price elasticity including total outlay, proportional, and point methods.
This document discusses demand, supply, and elasticity. It defines demand as the quantity of a good that consumers are willing and able to purchase at a given price. Supply is defined as the quantity of a good that producers are willing to sell at a given price. The law of demand states that, assuming other factors are constant, quantity demanded increases when price decreases and decreases when price increases. Supply curves normally slope upward, indicating that higher prices lead to greater quantity supplied. Determinants of demand and supply include price, income, prices of substitutes and complements, tastes and preferences, expectations, and others.
1) The document discusses the theory of demand and supply. It defines demand as the quantities of a good that consumers are willing and able to purchase at various prices. Supply is defined as the quantities of a good that producers are willing to offer for sale at various prices.
2) The law of demand states that, other things remaining constant, as price increases, quantity demanded decreases. The law of supply states that as price increases, quantity supplied also increases.
3) Market equilibrium occurs where quantity demanded equals quantity supplied. This establishes an equilibrium price where markets clear without surplus or shortage.
This document defines demand and discusses the different types of demand. It explains that demand is expressed in relation to price and time period. The key types of demand discussed are individual demand, market demand, ex-ante and ex-post demand, and joint demand. Determinants of demand include price, income, tastes/preferences, prices of related goods, expectations, credit availability, population, income distribution, and government policy. The law of demand and exceptions to it are explained. Movement along and shifts of the demand curve are also summarized.
The document discusses the economic concepts of demand, supply, elasticity and their key determinants and relationships. It provides definitions of demand and supply according to various economists. It explains that demand is determined by price, income, tastes etc. and is inversely related to price. Supply is determined by price of goods, factors of production, technology and is directly related to price. It also discusses elasticity of demand and supply and their measurement.
Best PPT on Chapter Demand from economics for Students.DhruvArora87
The document discusses the concept of demand, including:
- Demand is the quantity of a commodity a consumer is willing and able to buy at a given price over a period of time.
- Individual demand depends on price of the good, income, tastes/preferences, and related goods' prices. Market demand also depends on population size/composition, season/weather, and income distribution.
- Demand functions and schedules show the relationship between quantity demanded and influencing factors. The law of demand states an inverse relationship between price and quantity demanded when other factors remain constant. Exceptions to the law include Giffen goods and necessities.
1) Demand refers to an effective desire backed by both willingness and ability to pay for a good. It is represented through demand schedules and curves which show an inverse relationship between price and quantity demanded.
2) Individual demand is for a single consumer, while market demand is the total demand from all consumers. Market demand curves are created through horizontal summation of individual curves.
3) According to the law of demand, assuming other factors are constant, quantity demanded varies inversely with price - as price increases, quantity demanded decreases, and vice versa. There are some exceptions to this law.
This document discusses the economic concept of demand. It defines demand as the quantity of a good or service that consumers are willing and able to purchase at various price levels. Demand is determined by factors like price, income, tastes, population, and prices of substitutes. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Demand can change due to shifts in the demand curve from changes in these determinants, other than price.
This document discusses key concepts related to demand and elasticity. It defines demand, types of demand, individual and market demand, and determinants of demand. It also covers the demand curve and function, law of demand, demand schedule and exceptions. For elasticity, it defines price, income, and cross elasticity. It discusses types of price elasticity including perfectly elastic/inelastic and unit elastic demand. Finally, it covers methods for measuring price elasticity including total outlay, proportional, and point methods.
This document discusses demand, supply, and elasticity. It defines demand as the quantity of a good that consumers are willing and able to purchase at a given price. Supply is defined as the quantity of a good that producers are willing to sell at a given price. The law of demand states that, assuming other factors are constant, quantity demanded increases when price decreases and decreases when price increases. Supply curves normally slope upward, indicating that higher prices lead to greater quantity supplied. Determinants of demand and supply include price, income, prices of substitutes and complements, tastes and preferences, expectations, and others.
1) The document discusses the theory of demand and supply. It defines demand as the quantities of a good that consumers are willing and able to purchase at various prices. Supply is defined as the quantities of a good that producers are willing to offer for sale at various prices.
2) The law of demand states that, other things remaining constant, as price increases, quantity demanded decreases. The law of supply states that as price increases, quantity supplied also increases.
3) Market equilibrium occurs where quantity demanded equals quantity supplied. This establishes an equilibrium price where markets clear without surplus or shortage.
This document provides an overview of managerial economics and the demand function. It defines demand as the quantity of a commodity that consumers are willing and able to purchase at a given price. The law of demand states that, all else equal, demand increases as price decreases and decreases as price increases. A demand curve is downward sloping to represent this relationship. Elasticity of demand measures the responsiveness of quantity demanded to changes in price and other determinants of demand. There are different types of elasticity including perfectly inelastic, unitary, and perfectly elastic demand. The document also discusses factors that influence demand and exceptions to the law of demand.
This document provides an overview of demand and supply analysis concepts including:
- Definitions of key terms like market, demand, individual vs market demand, determinants of demand, demand curves, law of demand, supply, determinants of supply, law of supply, and market equilibrium.
- Descriptions of different types of demand like organization vs industry demand, autonomous vs derived demand, short-term vs long-term demand.
- Explanations of concepts like demand schedules, demand functions, exceptions to the law of demand, law of diminishing marginal utility, and demand curves.
- Discussions of elasticity including definitions of price elasticity, income elasticity, cross elasticity, and promotional
This document provides an overview of demand and supply. It defines demand as the desire and ability to purchase goods coupled with a willingness to pay. Demand depends on factors like price, income, tastes, and size of the population. The law of demand states that, all else equal, demand increases as price decreases. Supply is defined as the quantity of a good producers are willing and able to sell at a given price. The main determinants of supply are the price of the good, prices of related goods, number of firms, and technology. The document also discusses demand curves, elasticity, exceptions to the law of demand, and measurements of elasticity.
The document discusses the law of demand and demand curves. It can be summarized as:
1) The law of demand states that as price increases, quantity demanded decreases, assuming other factors remain constant. This relationship is depicted graphically with a downward sloping demand curve.
2) A demand curve shows the relationship between price and quantity demanded for a good. A movement along the curve represents a change in price, while a shift of the entire curve represents changes in other factors like income, tastes, or prices of related goods.
3) Market demand is the sum of individual demand curves for a good. It is depicted as a smooth downward sloping curve that sellers use to estimate total demand for a product at
The document discusses the law of demand and demand curves. It explains that the law of demand states that as price increases, quantity demanded decreases, assuming other factors remain constant. The demand curve graphically shows the inverse relationship between price and quantity demanded. A shift in the demand curve occurs when a change in a demand factor like income or tastes affects demand, while movement along the curve shows the effect of price changes on quantity demanded.
This document provides an overview of demand and supply concepts including:
- The definition of demand as the willingness and ability of consumers to purchase a product at a given price. Demand is determined by factors like price, income, tastes, and prices of related goods.
- Demand schedules and curves which graphically show the relationship between price and quantity demanded.
- The law of demand which states that, all else equal, quantity demanded increases when price decreases and decreases when price increases.
- Elasticity of demand which measures the responsiveness of demand to changes in price, income, and prices of related goods.
- Shifts in demand curves which represent changes in non-price factors affecting demand, versus movements along
Demand refers to effective demand backed by willingness and ability to purchase. The demand curve slopes downward to show an inverse relationship between price and quantity demanded. According to the law of demand, other things remaining constant, quantity demanded increases when price decreases as consumers will purchase more due to the income and substitution effects and the good attracting new consumers. Demand analysis is used for production planning, sales forecasting, inventory control, and economic policymaking.
1) Demand refers to how much of a good or service consumers are willing and able to purchase at different prices. It is determined by factors such as price, income, tastes, prices of related goods.
2) The law of demand states that, all else equal, as price increases consumers will purchase less of a good, and as price decreases they will purchase more. This relationship is depicted by the downward sloping demand curve.
3) Supply refers to how much producers are willing to provide or sell of a good at different prices. The law of supply states that, all else equal, as price increases producers will supply more of a good and as price decreases they will supply less, depicted by an upward
This document defines demand and discusses the key determinants and concepts related to demand, including:
1. Demand is defined as the amount of a good or service consumers will purchase at a given price. The main determinants of demand are price, income, tastes/preferences, and prices of related goods.
2. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Exceptions include Giffen goods, conspicuous goods, and speculative goods.
3. Elasticity measures the responsiveness of demand to changes in factors like price and income. Types of elasticity include price, income, and cross elasticity. Demand can be perfectly elastic,
BASIC LAWS OF CONSUPTION AND DEMAND ANALYSIS.pptDrSamsonChepuri1
The document discusses key concepts in demand analysis and consumer behavior, including:
1) It outlines the basic laws of consumption, including the law of diminishing marginal utility, the law of equi-marginal utility, consumer surplus, indifference curves, and consumer equilibrium.
2) It then covers demand analysis, defining demand, the demand function, factors that influence demand, and the law of demand.
3) Finally, it discusses elasticity of demand - how responsive demand is to changes in price and other factors. It defines different types of elasticities and factors that influence elasticity.
The document provides an overview of microeconomics concepts including demand and supply, elasticity, equilibrium, and welfare analysis. It defines economics and discusses the nature and scope of economics as a social science. Key concepts around demand are explained such as the determinants of demand including price, income, tastes, and related goods. The law of demand and exceptions to the law of demand are outlined. Demand curves are introduced as a graphical representation of the relationship between price and quantity demanded.
Ppt on Demand Analysis, Presentation on Demand Analysis, Managerial economicsLeena Gauraha
Ppt on Demand Analysis, Presentation on Demand Analysis, Managerial economics, Meaning of Demand, definition of demand, Types of demand, Determinants of demand, Law of demand, Factors behind law of demand, Changes in quantity demanded, Changes in demand.
The document provides an overview of supply and demand, including:
1. It defines demand as desire for a commodity backed by ability and willingness to pay, and defines the law of demand which states that quantity demanded varies inversely with price.
2. It also defines supply as the quantity firms choose to sell given a price, and defines the law of supply which states that quantity supplied varies directly with price.
3. It explains the determination of market equilibrium where the supply and demand curves intersect, and how various factors can cause the curves to shift, changing the equilibrium price and quantity.
Demand, supply, and equilibrium are central concepts in microeconomics. Demand is the quantity of a good consumers are willing and able to purchase at a given price, following the law of demand. Supply is the quantity producers are willing to provide at a given price, following the law of supply. Equilibrium occurs where quantity demanded equals quantity supplied, establishing the equilibrium price and quantity. Elasticity measures the responsiveness of demand or supply to changes in factors like price or income. Price elasticity indicates whether demand is elastic, inelastic, or unit elastic. Income and cross elasticities also help explain how demands interact.
The document discusses the theory of demand and supply over 8 sessions. It covers topics like the law of demand, determinants of demand, demand curves, elasticity of demand, changes in demand and quantity demanded. It also discusses the law of supply, determinants of supply, market equilibrium of price and quantity, and elasticity of supply. The document provides definitions and examples of key demand concepts like the demand schedule, demand curve, shifts versus movements along the demand curve. It also analyzes how factors like price, income, tastes, population, and prices of substitutes and complements can cause the demand curve to shift.
This document provides an overview of demand analysis and forecasting. It defines demand, discusses different types of demand like price demand and income demand. It explains the law of demand, assumptions of the law of demand, demand schedule, demand curve, individual demand and market demand. Factors determining demand are also discussed. The document then covers demand forecasting including its meaning, objectives, types, steps involved and factors influencing demand forecasting like types of goods, competition level, price of goods, technology and economic viewpoint.
This document discusses concepts of demand and supply analysis. It defines demand as the quantity of a good that consumers are willing and able to purchase at a given price per unit of time. Demand is determined by price of the good, income of consumers, prices of substitutes and complements, tastes, expectations, and other factors. The supply of a good depends on input prices, technology, and other supply shifters. Demand and supply curves show the relationship between price and quantity demanded/supplied in the market. The interaction of demand and supply determines the market equilibrium price and quantity.
This document provides an introduction to managerial economics and financial analysis. It defines key terms like management, economics, microeconomics, and macroeconomics. It also discusses the scope of managerial economics, including how it relates to other business disciplines. The document then covers various concepts in demand including the law of demand, demand schedules, price demand, income demand, and cross demand. It provides examples and formulas for different types of demand. Finally, it discusses elasticity of demand including definitions of price elasticity, income elasticity, and cross elasticity as well as factors that influence elasticity.
This document discusses the concepts of demand, supply, and market equilibrium in managerial economics. It defines key terms like demand, determinants of demand, demand schedules, supply, determinants of supply, supply schedules, and market equilibrium. The document also explains the laws of demand and supply, assumptions underlying the laws, individual and market demand curves, shifts in demand and supply curves, and the effect of changes in demand and supply on equilibrium price and quantity. It provides examples of demand and supply curves and equilibrium.
The document discusses demand analysis and the law of demand. It defines demand, the demand function, and the law of demand which states that quantity demanded is inversely related to price. It describes the assumptions of the law of demand and explains demand curves, exceptions to the law of demand, shifts in demand curves, factors determining demand, elasticity of demand, and types and factors determining elasticity of demand.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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This document provides an overview of managerial economics and the demand function. It defines demand as the quantity of a commodity that consumers are willing and able to purchase at a given price. The law of demand states that, all else equal, demand increases as price decreases and decreases as price increases. A demand curve is downward sloping to represent this relationship. Elasticity of demand measures the responsiveness of quantity demanded to changes in price and other determinants of demand. There are different types of elasticity including perfectly inelastic, unitary, and perfectly elastic demand. The document also discusses factors that influence demand and exceptions to the law of demand.
This document provides an overview of demand and supply analysis concepts including:
- Definitions of key terms like market, demand, individual vs market demand, determinants of demand, demand curves, law of demand, supply, determinants of supply, law of supply, and market equilibrium.
- Descriptions of different types of demand like organization vs industry demand, autonomous vs derived demand, short-term vs long-term demand.
- Explanations of concepts like demand schedules, demand functions, exceptions to the law of demand, law of diminishing marginal utility, and demand curves.
- Discussions of elasticity including definitions of price elasticity, income elasticity, cross elasticity, and promotional
This document provides an overview of demand and supply. It defines demand as the desire and ability to purchase goods coupled with a willingness to pay. Demand depends on factors like price, income, tastes, and size of the population. The law of demand states that, all else equal, demand increases as price decreases. Supply is defined as the quantity of a good producers are willing and able to sell at a given price. The main determinants of supply are the price of the good, prices of related goods, number of firms, and technology. The document also discusses demand curves, elasticity, exceptions to the law of demand, and measurements of elasticity.
The document discusses the law of demand and demand curves. It can be summarized as:
1) The law of demand states that as price increases, quantity demanded decreases, assuming other factors remain constant. This relationship is depicted graphically with a downward sloping demand curve.
2) A demand curve shows the relationship between price and quantity demanded for a good. A movement along the curve represents a change in price, while a shift of the entire curve represents changes in other factors like income, tastes, or prices of related goods.
3) Market demand is the sum of individual demand curves for a good. It is depicted as a smooth downward sloping curve that sellers use to estimate total demand for a product at
The document discusses the law of demand and demand curves. It explains that the law of demand states that as price increases, quantity demanded decreases, assuming other factors remain constant. The demand curve graphically shows the inverse relationship between price and quantity demanded. A shift in the demand curve occurs when a change in a demand factor like income or tastes affects demand, while movement along the curve shows the effect of price changes on quantity demanded.
This document provides an overview of demand and supply concepts including:
- The definition of demand as the willingness and ability of consumers to purchase a product at a given price. Demand is determined by factors like price, income, tastes, and prices of related goods.
- Demand schedules and curves which graphically show the relationship between price and quantity demanded.
- The law of demand which states that, all else equal, quantity demanded increases when price decreases and decreases when price increases.
- Elasticity of demand which measures the responsiveness of demand to changes in price, income, and prices of related goods.
- Shifts in demand curves which represent changes in non-price factors affecting demand, versus movements along
Demand refers to effective demand backed by willingness and ability to purchase. The demand curve slopes downward to show an inverse relationship between price and quantity demanded. According to the law of demand, other things remaining constant, quantity demanded increases when price decreases as consumers will purchase more due to the income and substitution effects and the good attracting new consumers. Demand analysis is used for production planning, sales forecasting, inventory control, and economic policymaking.
1) Demand refers to how much of a good or service consumers are willing and able to purchase at different prices. It is determined by factors such as price, income, tastes, prices of related goods.
2) The law of demand states that, all else equal, as price increases consumers will purchase less of a good, and as price decreases they will purchase more. This relationship is depicted by the downward sloping demand curve.
3) Supply refers to how much producers are willing to provide or sell of a good at different prices. The law of supply states that, all else equal, as price increases producers will supply more of a good and as price decreases they will supply less, depicted by an upward
This document defines demand and discusses the key determinants and concepts related to demand, including:
1. Demand is defined as the amount of a good or service consumers will purchase at a given price. The main determinants of demand are price, income, tastes/preferences, and prices of related goods.
2. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Exceptions include Giffen goods, conspicuous goods, and speculative goods.
3. Elasticity measures the responsiveness of demand to changes in factors like price and income. Types of elasticity include price, income, and cross elasticity. Demand can be perfectly elastic,
BASIC LAWS OF CONSUPTION AND DEMAND ANALYSIS.pptDrSamsonChepuri1
The document discusses key concepts in demand analysis and consumer behavior, including:
1) It outlines the basic laws of consumption, including the law of diminishing marginal utility, the law of equi-marginal utility, consumer surplus, indifference curves, and consumer equilibrium.
2) It then covers demand analysis, defining demand, the demand function, factors that influence demand, and the law of demand.
3) Finally, it discusses elasticity of demand - how responsive demand is to changes in price and other factors. It defines different types of elasticities and factors that influence elasticity.
The document provides an overview of microeconomics concepts including demand and supply, elasticity, equilibrium, and welfare analysis. It defines economics and discusses the nature and scope of economics as a social science. Key concepts around demand are explained such as the determinants of demand including price, income, tastes, and related goods. The law of demand and exceptions to the law of demand are outlined. Demand curves are introduced as a graphical representation of the relationship between price and quantity demanded.
Ppt on Demand Analysis, Presentation on Demand Analysis, Managerial economicsLeena Gauraha
Ppt on Demand Analysis, Presentation on Demand Analysis, Managerial economics, Meaning of Demand, definition of demand, Types of demand, Determinants of demand, Law of demand, Factors behind law of demand, Changes in quantity demanded, Changes in demand.
The document provides an overview of supply and demand, including:
1. It defines demand as desire for a commodity backed by ability and willingness to pay, and defines the law of demand which states that quantity demanded varies inversely with price.
2. It also defines supply as the quantity firms choose to sell given a price, and defines the law of supply which states that quantity supplied varies directly with price.
3. It explains the determination of market equilibrium where the supply and demand curves intersect, and how various factors can cause the curves to shift, changing the equilibrium price and quantity.
Demand, supply, and equilibrium are central concepts in microeconomics. Demand is the quantity of a good consumers are willing and able to purchase at a given price, following the law of demand. Supply is the quantity producers are willing to provide at a given price, following the law of supply. Equilibrium occurs where quantity demanded equals quantity supplied, establishing the equilibrium price and quantity. Elasticity measures the responsiveness of demand or supply to changes in factors like price or income. Price elasticity indicates whether demand is elastic, inelastic, or unit elastic. Income and cross elasticities also help explain how demands interact.
The document discusses the theory of demand and supply over 8 sessions. It covers topics like the law of demand, determinants of demand, demand curves, elasticity of demand, changes in demand and quantity demanded. It also discusses the law of supply, determinants of supply, market equilibrium of price and quantity, and elasticity of supply. The document provides definitions and examples of key demand concepts like the demand schedule, demand curve, shifts versus movements along the demand curve. It also analyzes how factors like price, income, tastes, population, and prices of substitutes and complements can cause the demand curve to shift.
This document provides an overview of demand analysis and forecasting. It defines demand, discusses different types of demand like price demand and income demand. It explains the law of demand, assumptions of the law of demand, demand schedule, demand curve, individual demand and market demand. Factors determining demand are also discussed. The document then covers demand forecasting including its meaning, objectives, types, steps involved and factors influencing demand forecasting like types of goods, competition level, price of goods, technology and economic viewpoint.
This document discusses concepts of demand and supply analysis. It defines demand as the quantity of a good that consumers are willing and able to purchase at a given price per unit of time. Demand is determined by price of the good, income of consumers, prices of substitutes and complements, tastes, expectations, and other factors. The supply of a good depends on input prices, technology, and other supply shifters. Demand and supply curves show the relationship between price and quantity demanded/supplied in the market. The interaction of demand and supply determines the market equilibrium price and quantity.
This document provides an introduction to managerial economics and financial analysis. It defines key terms like management, economics, microeconomics, and macroeconomics. It also discusses the scope of managerial economics, including how it relates to other business disciplines. The document then covers various concepts in demand including the law of demand, demand schedules, price demand, income demand, and cross demand. It provides examples and formulas for different types of demand. Finally, it discusses elasticity of demand including definitions of price elasticity, income elasticity, and cross elasticity as well as factors that influence elasticity.
This document discusses the concepts of demand, supply, and market equilibrium in managerial economics. It defines key terms like demand, determinants of demand, demand schedules, supply, determinants of supply, supply schedules, and market equilibrium. The document also explains the laws of demand and supply, assumptions underlying the laws, individual and market demand curves, shifts in demand and supply curves, and the effect of changes in demand and supply on equilibrium price and quantity. It provides examples of demand and supply curves and equilibrium.
The document discusses demand analysis and the law of demand. It defines demand, the demand function, and the law of demand which states that quantity demanded is inversely related to price. It describes the assumptions of the law of demand and explains demand curves, exceptions to the law of demand, shifts in demand curves, factors determining demand, elasticity of demand, and types and factors determining elasticity of demand.
Similar to Low of Demand Elasticity of Demand.pdf (20)
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
-------------------------------------------------------------------------------
Find out more about ISO training and certification services
Training: ISO/IEC 27001 Information Security Management System - EN | PECB
ISO/IEC 42001 Artificial Intelligence Management System - EN | PECB
General Data Protection Regulation (GDPR) - Training Courses - EN | PECB
Webinars: https://pecb.com/webinars
Article: https://pecb.com/article
-------------------------------------------------------------------------------
For more information about PECB:
Website: https://pecb.com/
LinkedIn: https://www.linkedin.com/company/pecb/
Facebook: https://www.facebook.com/PECBInternational/
Slideshare: http://www.slideshare.net/PECBCERTIFICATION
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
Assessment and Planning in Educational technology.pptxKavitha Krishnan
In an education system, it is understood that assessment is only for the students, but on the other hand, the Assessment of teachers is also an important aspect of the education system that ensures teachers are providing high-quality instruction to students. The assessment process can be used to provide feedback and support for professional development, to inform decisions about teacher retention or promotion, or to evaluate teacher effectiveness for accountability purposes.
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Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
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2. General Economics: Law of Demand and
Elasticity of Demand
2
Demand
Willing to
Purchase at
Various Prices
during Period of
Time
Able to Purchase
at Various Prices
during Period of
Time
3. General Economics: Law of Demand and
Elasticity of Demand
3
Definitions of Demand
• Demand refers to the Quantities of
Commodity that the Consumers are Able to
Buy at each possible Price during a given
Period of Time, other things being equal.
By : Ferguson
• Demand is the Ability and Willingness to
buy Specific Quantity of a Good at
Alternative Prices in a given Time Period,
Ceteris Paribus.
By : B. R. Schiller
4. General Economics: Law of Demand and
Elasticity of Demand
4
Determinants of Demand
• Price of the Commodity
• Price of Related Commodities
• Level of Income of the Household
• Taste & Preferences of Consumers
• Other Factors
5. General Economics: Law of Demand and
Elasticity of Demand
5
Determinants of Demand
• Price of the Commodity
Ceteris paribus i.e. Other Things
Being Equal,
This Happens Because of Income &
Substitution Effect.
1
D
P
∝
6. General Economics: Law of Demand and
Elasticity of Demand
6
Determinants of Demand
• Price of Related Commodities
Complementary Goods e.g. Pen & Ink
Price of one Good
Demand of Other Good
Substituting Goods e.g. Tea & Coffee
Price of one Good
Demand of Other Good
7. General Economics: Law of Demand and
Elasticity of Demand
7
Determinants of Demand
• Level of Income of the Household
Average Money Income
Quantity Demanded of a Good
Exception: Inferior Goods
Average Money Income
Quantity Demanded of a Good
8. General Economics: Law of Demand and
Elasticity of Demand
8
Determinants of Demand
• Taste & Preferences of Consumers
• Other Factors
–Size of the Population
–Composition of Population
9. General Economics: Law of Demand and
Elasticity of Demand
9
Law of Demand
• Law of demand states that People will Buy
more at Lower Prices and Buy less at Higher
Prices, Ceteris paribus, or other things
Remaining the Same.
By : Samuelson
• The Law of Demand states that Quantity
Demanded Increases with a Fall in Price
and Diminishes when Price Increases, other
things being equal.
By : Marshall
10. General Economics: Law of Demand and
Elasticity of Demand
10
Assumption to Law of Demand
• Law of demand holds Good when “Other Things
Remain the Same” meaning thereby, the factors
affecting demand ,other then price, are assumed to
be constant.
• Demand Function: Dx= f(PX, Pr, Y, T, E)
where, Dx = Demand for Commodity
Px = Price of Commodity X
Pr = Price of Other Goods
Y = Income of the Consumer
T = Tastes
E = Expectation of the Consumer
11. General Economics: Law of Demand and
Elasticity of Demand
11
Explanation
• According to Law of Demand, Ceteris Paribus
However, this Relation is not Proportional,
meaning thereby that it is not necessary
that when Price Falls by ½, Demand for
Goods will be Doubled.
This simply indicates the Direction of Change
in Demand as a result of Change in Price.
1
Quantity Demanded
Price
∝
12. General Economics: Law of Demand and
Elasticity of Demand
12
Demand Schedule
• Demand Schedule is a Series of
Quantities which Consumer would like to
Buy per unit of Time at Different Prices.
• Two Aspects of Demand Schedule
–Individual Demand Schedule
–Market Demand Schedule
13. 13
General Economics: Law of Demand and
Elasticity of Demand
Individual Demand Schedule
• It is defined as a
Table which shows
Quantities of a
Given Commodity
which an Individual
Consumer will buy
at all Possible
Prices at a given
Time.
Price per unit
(in Rs.)
Quantity
Demanded
(Units)
1 4
2 3
3 2
4 1
14. General Economics: Law of Demand and
Elasticity of Demand
14
Market Demand Schedule
• It is defined as the Quantities of a Given
Commodity which all Consumers will buy
at all Possible Prices at a given Moment of
Time. In Market there are many
Consumers of a Single Commodity. The
Schedule is based on the Assumption that
there are in all, 2 Consumers ‘A’ & ‘B’ of
Commodity ‘X’. By aggregating their
Individual Demand, the Market Demand
Schedule is constructed.
15. General Economics: Law of Demand and
Elasticity of Demand
15
Price of
Commodity ‘X’
(in Rs.)
Demand of
A
Demand of
B
Market
Demand
(Units)
1 4 5 4+5=9
2 3 4 3+4=7
3 2 3 2+3=5
4 1 2 1+2=3
It indicates that when price of ‘X’ is Rs 1.00
per unit, Demand of ‘A’ is for 4 units and that
of ‘B’ is for 5 units. Thus the Market Demand
is 9 units. As the Price Increases, Demand
Decreases.
16. General Economics: Law of Demand and
Elasticity of Demand
16
Demand Curve
• A Demand Curve is a Locus of Points
showing various Alternative Price-
Quantity Combinations.
• It shows the Inverse Relationship
between Price & Quantity Demanded.
• It Slopes Downwards to the Right.
17. General Economics: Law of Demand and
Elasticity of Demand
17
Individual Demand Curve
D
D
4
3
2
1
0
1 3
2 4
X
Y
X Axis – Price (Rs.)
Y Axis – Quantity
DD – Demand Curve
The Demand Curve
Slopes Downwards
from Left to Right,
meaning thereby that
when Price is High
Demand is Low and
vice versa.
Price
Quantity
18. General Economics: Law of Demand and
Elasticity of Demand
18
Market Demand Curve
D
Y
0
D
1
2
3
4
3 5 7 9
X
Quantity
Price
19. General Economics: Law of Demand and
Elasticity of Demand
19
Why does Demand Curve Slope
Downward?
• Income Effect : It is the Effect that a Change in a
Person’s Real Income caused by Change in the
Price of a Commodity has on the Quantity of that
Commodity. In other words, the Increase in
Demand on Account of Increase in Real Income is
known as Income Effect.
• Substitution Effect : It is the Effect that a Change in
Relative Prices of Substitute Goods has on the
Quantity Demanded. Substitutes are Goods that
can be used in place of each other.
20. General Economics: Law of Demand and
Elasticity of Demand
20
Why does Demand Curve Slope
Downward?
• Different Uses: Demand for
Commodities with Alternative Uses
tends to Extend Consequent upon the
fall in their prices.
• Size of Consumer Group: When the Price
of a Commodity falls, then many
Consumers, who are unable to buy that
Commodity at its Previous Price, Come
Forward to buy it.
21. General Economics: Law of Demand and
Elasticity of Demand
21
Exceptions to Law of Demand
• Article of Distinction or Veblen Goods: Goods
like Jewellery, Diamonds & Gems are
considered as Articles of Distinction. These
Goods command More Demand when their
Prices are High.
• Ignorance: Many a time, Consumers out of
sheer Ignorance or Poor Judgment consider a
Commodity to be of Low Quality if its Price is
Low and of High Quality if its Price is High.
22. General Economics: Law of Demand and
Elasticity of Demand
22
Exceptions to Law of Demand
• Giffen Goods : Giffen Goods are those Inferior
Goods whose Demand falls even when their
Prices Falls. For example, ‘Bajra’. Only those
Inferior Goods are called Giffen Goods where
Law of Demand Fails.
• Expectation of Rise or Fall in Price in Future: If
Prices are likely to Rise More in the Future then
even at the Existing Higher Price people may
Demand more Units of the Commodity in the
Present and vice versa.
23. General Economics: Law of Demand and
Elasticity of Demand
23
Expansion & Contraction in Demand
•Price ↓, QD ↑
•Downward Movement
Along the Demand Curve
Expansion
•Price ↑, QD ↓
•Upward Movement Along
the Demand Curve
Contraction
24. General Economics: Law of Demand and
Elasticity of Demand
24
Expansion & Contraction in Demand
O
P`
P
P``
L M N
D
D
Y
X
Price
Quantity Demanded
Contraction of Demand
Expansion of Demand
25. General Economics: Law of Demand and
Elasticity of Demand
25
Increase & Decrease in Demand
•Price Same, QD ↑ due to
Change in Other Factors
•Rightward Shift
Increase
•Price Same, QD ↓ due to
Change in Other Factors
•Leftward Shift
Decrease
26. General Economics: Law of Demand and
Elasticity of Demand
26
Increase & Decrease in Demand
D
D
D
D
D`
D`
D`
D`
Price
Price
Quantity Demanded Quantity Demanded
Increase in Demand Decrease in Demand
27. General Economics: Law of Demand and
Elasticity of Demand
27
Distinction between Extension &
Increase in Demand
• Extension in Demand
means Rise in Demand
in Response to fall in
the Price of a
Commodity, Other
things being equal.
• It is expressed by the
Movement from a
Higher Point to a
Lower Point along the
same Demand Curve.
• Increase in Demand
refers to the Rise in
Demand in Response to
the Change in the
Determinants of
Demand other then
Price.
• It is expressed by the
Upward Shift of the
Entire Demand Curve.
28. General Economics: Law of Demand and
Elasticity of Demand
28
Distinction between Contraction
& Decrease in Demand
• Contraction in Demand
means Fall in Demand
in Response to a Rise
in the Price of a
Commodity, Other
things being Equal.
• It is expressed by the
Movement from a
Lower Point to a
Higher Point on the
Same Demand Curve.
• Decrease in Demand
means Fall in Demand
in Response to Change
in Determinants of
Demand, Other then
the Price.
• It is expressed by a
Downward Shift of the
Entire Demand Curve.
29. General Economics: Law of Demand and
Elasticity of Demand
29
Elasticity of Demand
• It answers the Question “BY HOW MUCH?”
• Elasticity of Demand is defined as the
Responsiveness of the Quantity Demanded of a
Good to Change on one of the Variables on
which Demand Depends.
% Change in Q.D.
E =
% Change in one of the Variables
on which Demand depends
30. General Economics: Law of Demand and
Elasticity of Demand
30
Types of Elasticity of Demand
Price
Elasticity
Income
Elasticity
Cross
Elasticity
31. General Economics: Law of Demand and
Elasticity of Demand
31
Price Elasticity of Demand
It is Measured as a Percentage Change in Quantity
Demanded Divided by the Percentage Change in
Price, Other things Remaining Same.
% Change in Q.D.
Ep =
% Change in Price
Change in Quantity Original Price
Ep =
Change in Price Original Quantity
×
32. General Economics: Law of Demand and
Elasticity of Demand
32
Price Elasticity of Demand
Where, Ep Price Elasticity
∆ Very Small Change
P Price
Q Quantity Demanded
Note: Ep is (-)ve due to Inverse Relationship
Between Price & Quantity Demanded.
Q P
Ep =
P Q
∆
×
∆
33. General Economics: Law of Demand and
Elasticity of Demand
33
Degrees of Price Elasticity of
Demand
Perfectly
Elastic
E = ∞
Perfectly
Inelastic
E = 0
Unit
Elastic
E = 1
More
than Unit
Elastic
(Elastic)
E > 1
Less than
Unit
Elastic
(Inelastic)
E < 1
34. 34
General Economics: Law of Demand and
Elasticity of Demand
Perfectly Elastic Demand
• A Perfectly Elastic Demand
is one in which a Little
Change in Price will Cause
an Infinite Change in
Demand.
• A very little Rise in Price
causes the Demand to Fall
to Zero and a very little Fall
in Price causes Demand to
Extend to Infinity.
• Under Perfect Competition,
Demand Curve of a Firm is
Perfectly Elastic.
10 20 30
0
4
6
Y
X
D D
E = infinite
Quantity
Price
(Rs.)
35. 35
General Economics: Law of Demand and
Elasticity of Demand
Perfectly Inelastic Demand
• Perfectly Inelastic
Demand is one in
which a Change in
Price Produces No
Change in the
Quantity Demanded.
• In this case, Elasticity
of Demand is Zero.
E = 0
Y
X
0 4
2 6
2
4
6
D
D
Quantity
Price
(Rs.)
36. 36
General Economics: Law of Demand and
Elasticity of Demand
Unitary Elastic Demand
• Unitary Elastic
Demand is one in
which a % Change in
Price Produces an
Equal % Change in
Demand.
• This type of Demand
Curve is called
Rectangular
Hyperbola.
M N
E = 1
D
D
P
T
O
Y
X
Quantity (%)
Price
(Rs.)
(%)
37. 37
General Economics: Law of Demand and
Elasticity of Demand
Greater than Unitary Elastic
Demand
• Greater than Unitary
Elastic Demand is one
in which a Given
%Change in Price
Produces Relatively
more %Change in
Demand.
• In this case Elasticity of
Demand is Greater than
Unitary.
M N
X
O
Y
P
T
E>1
D
D
Quantity (%)
Price
(Rs.)
(%)
38. 38
General Economics: Law of Demand and
Elasticity of Demand
Less than Unitary Elastic
Demand
• Less than Unitary
Elastic Demand is one
in which a given %
Change in Price
Produces Relatively
Less % Change in
Demand
• In this case, Elasticity
of Demand is Less then
Unitary.
M N
X
Y
D
D
E< 1
T
P
O
Quantity (%)
Price
(Rs.)
(%)
39. General Economics: Law of Demand and
Elasticity of Demand
39
Point Elasticity of Demand
• Refers to Measuring the Elasticity at a Particular
Point on Demand Curve.
• Makes Use of Derivative Changes Rather than
Finite Changes in Price & Quantity.
• Defined As:
Where, is the derivative of Quantity w.r.t. Price
at a point on Demand Curve.
dq p
dp q
×
dq
dp
40. 40
General Economics: Law of Demand and
Elasticity of Demand
Point Elasticity of Demand
• As we Move from N
to M, Elasticity Goes
on Increasing. At Mid
Point, Ep = 1, at N Ep
= 0 & at M Ep = ∞
A
P
B
M
N
Y
X
Mid
Point
E>1
E =1
E<1
E =0
O
Quantity
Price
(Rs)
E = ∞
Upper Segment
Point Elasticity =
Lower Segment
PM
PN
=
41. 41
General Economics: Law of Demand and
Elasticity of Demand
Arc Elasticity of Demand
• When Elasticity is to be
found between 2 Points,
we use Arc Elasticity.
Y
X
O
Quantity
Price
(Rs)
1 2 1 2
1 2 1 2
q q p p
Elasticity =
q q p p
×
− +
+ −
Where,
p1 = Original Price
q1 = Original Quantity
p2 = New Price
q2 = New Quantity
Arc Elasticity
A
B
P1
P2
Q1 Q2
42. General Economics: Law of Demand and
Elasticity of Demand
42
Arc Elasticity of Demand
For Example, Find Elasticity of Radios Between:
p1 = Rs. 500 q1 = 100
p2 = Rs. 400 q2 = 150
1 2 1 2
1 2 1 2
q q p p
Elasticity =
q q p p
×
− +
+ −
50 900
Ep =
250 100
×
Ep = 1.8
43. General Economics: Law of Demand and
Elasticity of Demand
43
Total Expenditure (Outlay) Method
• This Method was evolved by Dr. Alfred
Marshall.
• According to this Method, To Measure the
Elasticity of Demand it is Essential to
Know How Much & In What Direction the
Total Expenditure has Changed as a Result
of Change in the Price of a Good.
44. General Economics: Law of Demand and
Elasticity of Demand
44
Total Expenditure (Outlay) Method
Elasticity of
Demand
Price Total
Expenditure
Greater than
Unity i.e. Ep > 1
Unity
i.e. Ep = 1
Same
Same
Unchanged
Unchanged
Less than Unity
i.e. Ep < 1
45. 45
General Economics: Law of Demand and
Elasticity of Demand
Total Expenditure (Outlay) Method
Y
X
O
P
M
N
R
T
A
E>1
B
E = 1
C
E<1
D
E
Total Expenditure
Price
(Rs.)
46. General Economics: Law of Demand and
Elasticity of Demand
46
Determinants of Price Elasticity of
Demand
• Availability of Substitutes
• Position of Commodity in Consumer’s
Budget
• Nature of Need that a Commodity Satisfies
• Number of Uses to which a Commodity is
Put
• Period
• Consumer Habits
47. General Economics: Law of Demand and
Elasticity of Demand
47
Income Elasticity of Demand
• Income Elasticity of Demand is the Degree of
Responsiveness of Quantity Demanded of a
Good to a Small Change in the Income of
Consumer.
Ey =
% Change in Quantity Demanded
% Change in Income
48. General Economics: Law of Demand and
Elasticity of Demand
48
Degrees of Income Elasticity of
Demand
• Positive Income Elasticity of Demand
- Unitary Income Elasticity of Demand
- Less than Unitary Income Elasticity of Demand
- More than Unitary Income Elasticity of Demand
• Negative Income Elasticity of Demand
• Zero Income Elasticity of Demand
49. 49
General Economics: Law of Demand and
Elasticity of Demand
Positive Income Elasticity of Demand
• Income Elasticity of
Demand for a Good is
Positive, When with
an Increase in the
Income of a Consumer,
his Demand for the
Good Increases and
Vice Versa.
• It is Positive in case of
Normal Goods.
DY
DY
Y
X
Q Q
O
B
A
Quantity
Income
50. 50
General Economics: Law of Demand and
Elasticity of Demand
Negative Income Elasticity of
Demand
• Income Elasticity of
Demand is Negative
when Increase in the
Income of the
Consumer is
Accompanied by Fall in
Demand of a Good
• It is Negative in case of
Inferior Goods which
are known as Giffen
Goods.
DY
DY
Y
X
O 2
1 3 4
5
10
15
20
Income
Quantity
51. 51
General Economics: Law of Demand and
Elasticity of Demand
Zero Income Elasticity of Demand
• Income Elasticity of
Demand is Zero,
When Change in the
Income of Consumer
evokes No Change in
his Demand.
• Demand for
Necessaries like oil,
salt, etc., have Zero
Income Elasticity of
Demand.
Y
O
DY
DY
A
B
5
10
15
20
4
3
2
1 5
Quantity
Income
X
52. General Economics: Law of Demand and
Elasticity of Demand
52
Cross Elasticity of Demand
• Cross Elasticity of Demand is a Change in the Demand of
One Good in Response to a Change in the Price of
Another Good.
Where, Ec = Cross Elasticity
qx = Original Q.D. of X
∆qx = Change in Q.D. of X
py = Original Price of Y
∆py = Change in Price of Y
y
x
c
y x
p
q
E =
p q
∆
×
∆
53. 53
General Economics: Law of Demand and
Elasticity of Demand
Positive Cross Elasticity of Demand
• It is positive in case
of Substitute Goods.
• For example, Rise in
the Price of Coffee
will lead to Increase
in Demand for Tea.
• The Curve slopes
Upward from Left to
Right.
X
Y
DS
DS
E
E1
P
P1
O Q Q1
Quantity of Tea
54. 54
General Economics: Law of Demand and
Elasticity of Demand
Negative Cross Elasticity of Demand
• It is Negative in Case
of Complementary
Goods.
• For example, Rise in
Price of Bread will
bring Down the
Demand for Butter.
• The Curve slopes
Downwards from
Left to Right.
DC
DC
Y
X
O Q1 Q
P
P1
Price
of
Bread
E1
E
Quantity of Butter
55. General Economics: Law of Demand and
Elasticity of Demand
55
Zero Cross Elasticity of Demand
• Cross Elasticity of Demand is Zero when
Two Goods are Not Related to each
other.
• For example, Rise in the Price of Wheat
will have No Effect on the Demand for
Shoes.
56. General Economics: Law of Demand and
Elasticity of Demand
56
Q 1
The Concept of Elasticity of Demand
was developed by:
a) Alfred Marshall
b) Edwin Camon
c) Paul Samuelson
d) Fredric Bonham
57. General Economics: Law of Demand and
Elasticity of Demand
57
Q 2
Demand Curve in most cases Slopes
a) Downward towards Right
b) Vertical And Parallel to Y-axis
c) Upward Towards Left
d) Horizontal And Parallel to X-axis
58. General Economics: Law of Demand and
Elasticity of Demand
58
Read the following Data & Answer Q3 to Q8
• XYZ are 3 Commodities where X & Y are
Complements whereas X & Z are Substitutes.
• A Shopkeeper sells Commodity X at Rs.40 per
piece. At this price he is able to sell 100 pieces of
X per month. After some time he decreases the
price of X to Rs. 20. Following the Price
Decrease:
– He is able to sell 150 pieces of X per month
– The Demand for Y increases from 25 units to 50 units
– The Demand for Commodity Z decreases from 150 to
75 units
59. General Economics: Law of Demand and
Elasticity of Demand
59
Q 3
The Price Elasticity of Demand when the
price of X decreases from Rs.40 per piece
to Rs.20 per piece will be equal to:
a) 1.5
b) 1.0
c) 1.66
d) 0.6
60. General Economics: Law of Demand and
Elasticity of Demand
60
Q 4
The Cross Elasticity of Monthly Demand for Y
When the Price of X Decrease from Rs.40 to
Rs.20 is Equal to:
a) +1
b) -1
c) -1.5
d) +1.5
61. General Economics: Law of Demand and
Elasticity of Demand
61
Q 5
The Cross Elasticity of Z when the Price of
X Decreases from 40 to 20 is Equal to:
a) -0.6
b) +0.6
c) -1
d) +1
62. General Economics: Law of Demand and
Elasticity of Demand
62
Q 6
What can be said about Price Elasticity
of Demand for X?
a) Demand is Unit Elastic
b) Demand is Highly Elastic
c) Demand is Perfectly Elastic
d) Demand is Inelastic
63. General Economics: Law of Demand and
Elasticity of Demand
63
Q 7
Suppose Income of the Residents of Locality
increase by 50% & the Quantity of X
Commodity increases by 20%. What is
Income Elasticity of Demand for
Commodity X?
a) 0.6
b) 0.4
c) 1.25
d) 1.35
64. General Economics: Law of Demand and
Elasticity of Demand
64
Q 8
We can say that Commodity X in
Economics is a/an
a) Luxury Good
b) Inferior Good
c) Normal Good
d) None of the Above
65. General Economics: Law of Demand and
Elasticity of Demand
65
Q 9
Positive Income Elasticity implies that as
Income Rises, Demand for the
Commodity
a) Rises
b) Falls
c) Remains Unchanged
d) Becomes Zero
66. General Economics: Law of Demand and
Elasticity of Demand
66
Q 10
The ‘Substitution Effect’ takes place
due to Change in
a) Income of the Consumer
b) Prices of the Commodity
c) Relative Prices of the Commodity
d) All of the Above
67. General Economics: Law of Demand and
Elasticity of Demand
67
Q 11
In Case of Inferior Goods, Income
Elasticity is:
a) Zero
b) Positive
c) Negative
d) None
68. General Economics: Law of Demand and
Elasticity of Demand
68
Q 12
In Case of Giffen Goods, Demand
Curve will Slope:
a) Upward
b) Downward
c) Horizontal
d) Vertical
69. General Economics: Law of Demand and
Elasticity of Demand
69
Q 13
Cross Elasticity of Demand between
Tea & Coffee is:
a) Positive
b) Negative
c) Zero
d) Infinity
70. General Economics: Law of Demand and
Elasticity of Demand
70
Q 14
The Exception to the Law of Demand are:
a) Veblen Goods
b) Giffen Goods
c) Both
d) None
71. General Economics: Law of Demand and
Elasticity of Demand
71
Q 15
If the Income Elasticity is Greater than
One, the commodity is :
a) Necessity
b) Luxury
c) Inferior Goods
d) None of these
72. General Economics: Law of Demand and
Elasticity of Demand
72
Q 16
When Quantity Demanded changes by
Larger Percentage than does Price,
Elasticity is termed as:
a) Inelastic
b) Perfectly Elastic
c) Elastic
d) Perfectly Inelastic
73. General Economics: Law of Demand and
Elasticity of Demand
73
Q 17
If the Price of Good A increases relative to
the Price of Substitute B & C, the
Demand for:
a) B will Increase
b) C will Increase
c) B & C will Increase
d) B & C will Decrease
74. General Economics: Law of Demand and
Elasticity of Demand
74
Q 18
Contraction of Demand is the Result of:
a) Decrease in the number of Consumers
b) Increase in the Price of the Good
Concerned
c) Increase in the Prices of Other Goods
d) Decrease in the Income of Purchasers
75. General Economics: Law of Demand and
Elasticity of Demand
75
Q 19
In case of Straight Line Demand Curve
meeting the two axes, the Price Elasticity
of Demand at the mid-point of the line
would be:
a) 0
b) 1
c) 1.5
d) 2
76. General Economics: Law of Demand and
Elasticity of Demand
76
Q 20
If the Demand of a Good is Inelastic, an
increase in its price will cause the Total
Expenditure of the Consumers of the
Good to:
a) Remain the Same
b) Increase
c) Decrease
d) Any of These
77. General Economics: Law of Demand and
Elasticity of Demand
77
Q 21
All of the Following are Determinants
of Demand Except
a) Taste & Preferences
b) Quantity Supplied
c) Income
d) Price of Related Goods
78. General Economics: Law of Demand and
Elasticity of Demand
78
Q 22
The Law of Demand refers to______
a) Price-Supply Relationship
b) Price-Cost Relationship
c) Price-Demand Relationship
d) Price-Income Relationship