SHIFTS IN DEMAND

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Usefulness of the demand schedule

1. Producer – It helps the businessman understand the pattern of demand in the market and to anticipate the quantity and the quality of goods that he can sell at different prices. 2. Monopolist – In case of monopolies, price

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Exceptions to the law of demand

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Reasons for the negative slope of the demand curve

1] A change in number of consumers – a) If Px rises then some existing consumers buy less and some who cannot afford to buy will leave the market therefore demand for X will fall. b) If Px falls then

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Law of demand

The law of demand has been put forward by   Dr Alfred Marshall in his book “ Principles of economics ” published in 1890. According to by   Dr Alfred Marshall demand ie “  the desire backed by willingness and ability to

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Assumptions of the law of demand

1. Population: It is assumed that the population of whatever unit considered e.g family, nation, etc. remains the same, when the change in price takes place. It is also assumed that the age and sex composition of population remains the

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Characteristics of demand

1] A desire to possess a commodity – A desire is a wish to acquire something, it may or may not be accompanied by the effective means to fulfill it. He may or may not be able to buy it.

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Analysis of demand

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Types of demand

1] Joint demand – Joint demand is also known as complementary demand. When more than one commodity is used to satisfy the same want these commodities are known as complements of each other. A change in demand of one commodities

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Introduction

In ordinary language, the two terms ‘demand’ and ‘desire’ are used as synonyms. A desire is an individual’s wish for something he may or may not be able to buy. In economics, “demand is the desire backed by the willingness

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