Elasticity Of Demand

Demand is the amount of an economic good or bring that a consumer or a group of consumers are ordain to buy from the market at a given profound injury at a given point of time. An individuals choose for a commodity depends on various factors, such as, the injustice of the commodity, the consumers income, the value of related (i.e. complementary and substitute) goods, tastes and preferences of the consumer, etc. Usually, when the prices of the commodities fall, consumers are tempted to purchase to a greater extent, and when the prices rise, the measuring assumeed decreases. on that point is, thus, an backward relationship between the price of the product and the quantity conducted. The economists earn named this inverse relationship between demand and price as the law of demand. The law of demand states that consumers buy more of a good when its price decreases and less when its price increases (ceteris paribus ), other factors touching demand kept constant. Th at is, if the income of the consumer, prices of the related goods, and tastes and preferences of the consumer remain un commuted, the consumers demand for the good will move opposite to the social doing in the price of the good.

The law of demand wad be graphically depicted by a downward shot demand curve: The graph clearly shows that at a higher price (P1), the quantity demanded is less (Q1). When price exit (P2), the quantity demanded increases (Q2), and so on. ELASTICITY OF DEMAND What is Elasticity? Literally, cracking means flexibilty. In economics, elasticity is measure of reactivity of de pendent variable to the compound in indepen! dent variable. It is expressed as the ratio of the fortune mixture in dependent variable to the percentage change in independent variable. What is Elasticity of Demand? Elasticity of demand can be defined as the degree of responsiveness of demand(dependent variable) to changes in factors affecting demand (independent variable). The factors affecting demand hither could be -...If you want to get a full essay, put up it on our website: BestEssayCheap.com

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