Elementary Theory of Demand — Flashcards

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Demand means effective desire for a commodity, backed by the ability to pay and the willingness to pay. It is not just a wish. A person must want the good, be able to buy it, and be willing to spend m…

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Demand requires three conditions: desire for the commodity, capacity or ability to pay, and willingness to pay the price. If any one of these is missing, demand does not exist in economics.

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Demand refers to different quantities of a good demanded at different prices during a given period of time. Quantity demanded means the specific amount bought at one particular price at one particular…

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A demand schedule is a table showing quantities of a commodity demanded at different prices during a given time period. It helps show the relation between price and demand in a simple tabular form.

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A demand curve is a graph that shows the relation between the price of a commodity and the amount of that commodity the consumer wishes to purchase. It is a locus of points showing various alternative…

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The demand curve slopes downward because price and quantity demanded have an inverse relationship, other factors remaining constant. When price falls, quantity demanded rises. When price rises, quanti…

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The law of demand states that other things being equal, price and quantity demanded of any good or service are inversely related to each other. When the price of a good increases, the demand for the s…

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Marshall said: "The amount demanded increases with a fall in price and diminishes with a rise in price." This statement expresses the inverse relation between price and demand.