Q.1 What are the three essential elements of demand ?
Ans: Demand for a commodity refers to the quantity of a commodity that a consumer is willing to buy at a given price during a given period of time.
The definition of demand highlights three essential elements of demand:
(i) price of the commodity
(ii) quantity of the commodity
(iii) period of time: the time period may be a day, a week, a month, a year or any other period.
| Keywords: Price ,quantity,Period, commodity |
| Source :NIOS: PDF Link : Page Number : 47 |
| Extra Info : Factors affect the individual demand for a commodity: price of the commodityprice of related goodsincome of buyer of the commoditytastes and preferences of the buyer The law of demand states that other things remaining same, quantity demanded of a commodity is inversely related to its price. In other words, demand for a commodity rises when its price falls and its demand falls when price rises provided other factors remain unchanged. |