Friday, 21 February 2020

Market Demand


Market Demand

In economics demand has a specific meaning. Demand for any commodity implies: desire
to acquire it, willingness to pay for it, ability to pay for it and at a particular time.
Demand depends on not only the price of a commodity, but also income, price of related
goods – both substitutes and complements – taste of consumer, price expectation and all
other factors.
According to Law of Demand, there is an inverse relationship between the price of a
commodity and the quantity demanded (other things remaining equal)

Demand Function: A comprehensive formulation which specifies the factors that influence the
demand for the product
Demand: The quantity of the commodity which an individual is willing to purchase per unit of
price at a particular time.
Derived Demand: Goods whose demand is tied with the demand for some other goods
Direct Demand: Goods whose demand is not tied with the demand for some other goods

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