Economics · Class 11 Commerce
Ch 3Demand — Class 11 Economics, concept-first.
In everyday language "demand" is often used loosely to mean any want or wish. In economics the word carries a much sharper meaning, and this chapter — a core unit of the Gujarat Std 11 Commerce Economics (GSHSEB) syllabus — builds the whole theory of the consumer's side of a market on that precise meaning.
Key concepts
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Law of Demand
The Law of Demand states that, other things remaining the same, quantity demanded of a commodity varies inversely with its price — a fall in price raises quantity demanded, and a rise in price lowers it.
Most relevant Q&A
- Define demand. Distinguish between desire and demand with a suitable example.Free
- State the Law of Demand. Explain any three reasons why the law generally holds true.Free
- What are the exceptions to the Law of Demand? Explain Giffen goods and Veblen goods with examples.Preview
- Which of the following best describes a Giffen good? (i) A good with zero price elasticity of demand (ii) An inferior good whose quantity de…Preview
In previous exams
How often this chapter’s concepts have been examined — real appearance data, never estimated.
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning of Demand
In everyday language "demand" is often used loosely to mean any want or wish. In economics the word carries a much sharper meaning, and this chapter — a core unit of the Gujarat Std 11 Commerce Econom…
Determinants of Demand
The quantity demanded of any commodity is influenced by several factors acting together. The price of the commodity itself is treated as the single most important determinant and is studied in isolati…
Demand Function, Demand Schedule and Demand Curve
Demand function expresses quantity demanded as depending on price and the other determinants, written generally as:
Law of Demand and Its Exceptions
The Law of Demand states: other things remaining the same, when the price of a commodity falls, the quantity demanded of it rises; and when the price rises, the quantity demanded falls.
Movement Along vs Shift of the Demand Curve
A very common source of confusion — and a frequent exam question — is the difference between a change in quantity demanded and a change in demand itself.
Elasticity of Demand — Price, Income and Cross Elasticity
The Law of Demand only tells us the DIRECTION in which quantity demanded moves when price changes. Elasticity of demand measures the DEGREE — how responsive quantity demanded is to a change in price,…
Exercises
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- Q6Define demand. Distinguish between desire and demand with a suitable example.Free
- Q7Explain any five determinants of demand for a commodity, other than its own price.Free
- Q8State the Law of Demand. Explain any three reasons why the law generally holds true.Free
- Q9What are the exceptions to the Law of Demand? Explain Giffen goods and Veblen goods with examples.Preview
- Q10Distinguish between a movement along the demand curve and a shift of the demand curve, giving one cause and one diagram-effect for each.Preview
- Q11Which of the following best describes a Giffen good? (i) A good with zero price elasticity of demand (ii) An inferior good whose quantity de…Preview
- Q12Prepare a demand schedule for a hypothetical commodity using the linear demand function Qd = 120 − 5P, for prices P = ₹4, ₹8, ₹12, ₹16 and ₹…Preview
More questions
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- Example 1When the price of a commodity falls from ₹20 to ₹16 per unit, the quantity demanded rises from 100 units to 130 units. Calculate the price e…Free
- Example 2A shopkeeper's total sales revenue on a good was ₹1,000 when its price was ₹10 per unit. After a price cut to ₹8 per unit, total revenue fel…Free
- Example 3A consumer's monthly income rises from ₹20,000 to ₹25,000, and her monthly demand for a normal good rises from 40 units to 46 units, price r…Preview
- Example 4The price of coffee rises from ₹200 to ₹240 per kg. As a result, the demand for tea (a substitute) rises from 50 kg to 55 kg per month, tea'…Preview
- Example 5The price of petrol rises from ₹100 to ₹110 per litre. As a result, the demand for cars (a complementary good) falls from 1,000 to 950 units…Preview