ICSE Class 10 Economic Application — Flashcards for Quick Revision

A: Demand means effective desire for a commodity, backed by the ability to pay and willingness to pay. It is more than a simple want. A person may desire many things, but demand exists only when there is

A: Demand requires three conditions: desire for a commodity, ability to pay for it, and willingness to pay its price. If any one of these is missing, demand is not formed.

A: A mere want is only a wish, but demand is a wish with purchasing power and willingness to spend. For example, a poor person may wish to buy a car, but without ability to pay, it is not demand.

A: Elasticity of demand measures the amount of change in quantity demanded of a commodity in response to a change in its price. It is a quantitative concept because it is measured in numbers. Example: if

A: It is called a quantitative concept because it measures responsiveness of demand in numerical form. It does not describe demand only as high or low; it shows how much quantity demanded changes when pr

A: Alfred Marshall developed the concept of price elasticity of demand as the ratio of a relative change in quantity demanded to a relative change in price. He is also known as Dr. Marshall in this chapt

A: Supply is the quantity of a commodity that producers are willing to offer for sale at a given price and during a given period of time. It is a desired quantity, not necessarily the quantity actually s

A: Prof. Meyers defined supply as a schedule of the amount of a good that would be offered for sale at all possible prices at any one instant of a time or during any period of time, for example, a day or

A: Prof. Benham defined supply as the amount offered for sale per unit of time. The idea shows that supply is related to time and is measured over a period.