Scribd
Upload
18 views3 pages

Economic Demand Notes

Class 11 notes economics Demand chapter

Uploaded by

manharbhagwatia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
18 views3 pages

Economic Demand Notes

Class 11 notes economics Demand chapter

Uploaded by

manharbhagwatia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Chapter Notes: Economic Demand

Economic Demand: Key Concepts

1. Definition of Demand:

- Demand refers to the quantity of a good or service that consumers are willing and able to

purchase at various prices during a given period.

2. Law of Demand:

- There is an inverse relationship between the price of a good and the quantity demanded, ceteris

paribus.

- When the price rises, demand decreases, and vice versa.

3. Determinants of Demand:

- Price of the good

- Income of consumers

- Prices of related goods (substitutes and complements)

- Consumer tastes and preferences

- Future expectations of prices and income

- Number of buyers in the market

4. Types of Demand:

- Individual Demand: Demand by a single consumer.

- Market Demand: Total demand by all consumers in the market.

5. Demand Schedule and Demand Curve:


- Demand Schedule: A table showing the quantity demanded at various prices.

- Demand Curve: A graphical representation of the demand schedule, typically downward-sloping.

6. Elasticity of Demand:

- Price Elasticity: Measures the responsiveness of quantity demanded to a change in price.

Formula: Percentage change in quantity demanded / Percentage change in price.

- Income Elasticity: Responsiveness of demand to changes in income.

- Cross Elasticity: Responsiveness of demand for one good to a change in the price of another

good.

7. Shifts in Demand vs. Movements Along the Demand Curve:

- Movement along the curve: Caused by a change in the price of the good itself.

- Shift of the curve: Caused by changes in other factors like income, preferences, etc.

8. Exceptions to the Law of Demand:

- Giffen Goods: Goods for which demand increases as price rises due to the income effect

outweighing the substitution effect.

- Veblen Goods: Luxury goods for which demand increases as price rises due to their status

symbol.

9. Importance of Demand Analysis:

- Helps in pricing decisions.

- Assists in production planning.

- Aids in understanding market trends.

10. Graphical Representations:

- Ensure diagrams are correctly labeled with axes representing price and quantity.
End of Notes.

You might also like