Elasticity Of Demand

Demand is the amount of an economic good or mixture that a consumer or a group of consumers are willing to secure from the market at a given intelligent injury at a given point of time. An individuals get for a commodity depends on various factors, such as, the agony 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 penuryed decreases. on that point is, thus, an contrary relationship between the price of the product and the quantity hireed. The economists contrive 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 . That 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 impulsion in the price of the good.

The law of demand wad be graphically depicted by a downward stroking demand curve: The graph clearly shows that at a higher price (P1), the quantity demanded is less (Q1). When price trigger (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 dependent variable to the wobble in ind! ependent variable. It is expressed as the ratio of the contribution change 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 present could be -...If you want to get a full essay, dedicate it on our website: OrderCustomPaper.com

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