Q.Define the Law of Demand.

The single most important determinant of consumer demand is the good's own price.

A consumer's demand for a commodity depends on several factors — the consumer's income, prices of related goods, tastes and preferences — but the most important determinant is the price of the good itself. Other things remaining constant, the law of demand states that as the own price falls the quantity demanded rises, and as the price rises the quantity demanded falls. Hence own price is the key determinant of dem …

Adding the two individual demand curves gives market demand D(P) = 35 - 2P.

The market demand curve is the horizontal summation of individual demand curves — at each price we add the quantities each consumer demands.

Given:

• Consumer 1: d1(P) = 20 - P
• Consumer 2: d2(P) = 15 - P

Market demand D(P) = d1(P) + d2(P) = (20 - P) + (15 - P) = 35 - 2P.

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Demand requires desire for the good, a given price, and willingness plus ability to spend — all of these together — so the answer is (D).

A mere wish to have a commodity is not demand. Effective demand in economics requires: (i) a desire to consume the good, (ii) reference to a given price at which it is wanted, and (iii) the willingness and ability (purchasing power) to pay that price. Only when desire is backed by wi …

Price of the good, consumer taste and consumer preference are all determinants of demand, so (D) is correct.

In the RBSE/CBSE Class-12 consumer-behaviour chapter, the quantity demanded of a good depends on several factors:

• Price of the good itself — the main determinant (law of demand).
• Consumer's taste — a stronger taste raises demand.
• Consumer's preference — preferences shape how much is bought. …

The demand curve generally slopes downward from left to right, so the answer is (C).

In the BSEB Inter Class-12 Economics syllabus, the law of demand states that, other things remaining constant, a fall in price raises quantity demanded and a rise in price lowers it — price and quantity demanded are inversely related. Plotted with price on the y-axis and quantity on the x-axis, this inverse relation gives a demand curve that **slopes down …

A change in the good's own price causes a change in quantity demanded, not a change in demand, so the answer is (A).

In the BSEB Inter Class-12 Economics syllabus, a careful distinction is made between change in quantity demanded (a movement along the same demand curve, caused only by a change in the good's own price) and change in demand (a shift of the whole demand curve, caused by changes in income, tastes/fashion, prices of related goods, etc.). Therefore a change in the good's own price does not s …

A demand curve shows the relationship between the quantity demanded of a good and its price, so the answer is (d).

A demand curve is a graphical representation of the demand schedule; it shows the relationship between the price of a commodity and the quantity demanded of it, other things remaining constant. Price is taken on the vertical axis and quantity demanded on the horizontal axis. Because of the i …

The demand curve for a normal good is downward-sloping, i.e. it has a negative slope, so the answer is (b).

For a normal good the Law of Demand applies: as price falls, quantity demanded rises, and as price rises, quantity demanded falls. This inverse relationship means that when we plot price on the vertical axis and quantity on the horizontal axis, the demand …

The demand function is X = f(P) — option (C).

The demand function shows the functional relationship between the quantity demanded of a commodity (X) and its own price (P), assuming other determinants (income, tastes, prices of related goods) stay constant. Hence X = f(P). H …

The total demand of all consumers is market demand.

Market demand is obtained by horizontally summing the individual demands of all consumers in the market at each price. It shows the total quantity of a commodity that all buyers together are willing to purchas …