Demand — Flashcards

Answer

Demand for a good is the quantity of the good purchased at a given price at a given time. It includes three parts: price, quantity, and time period. For example, buying 1 kg of rice at Rs. 25 per kg l…

Answer

The three essential components of demand are price of the commodity, quantity of the commodity bought, and time period. The time period may be a week, month, or year.

Answer

It is not an example of demand because the price of a pair of shoes is not given. Demand needs price, quantity, and time period together.

Answer

It is not an example of demand because the time period is missing. Demand must mention the price, quantity, and time period.

Answer

It is not an example of demand because the quantity of milk consumed is not given. Demand needs price, quantity, and time period.

Answer

Desire is only wanting a good. Demand is desire backed by ability to purchase and actual payment of price. If a person wants a good but cannot pay for it, it remains desire and does not become demand.

Answer

If price of a commodity falls, its quantity demanded increases, and if price of the commodity rises, its quantity demanded falls, other things remaining constant.

Answer

It means that factors other than price do not change. These include price of related goods, income of the buyer, and tastes and preferences. This condition is also called ceteris paribus.