16 Questions
What is demand?
A desire for a commodity backed by willingness and ability to pay
How is demand different from just a desire?
Demand is related to willingness and ability to pay, while desire is not
What does the individual demand schedule describe?
The demand pattern of a consumer based on price fluctuation
What does an inverse relationship between price and demand mean?
As price increases, quantity demanded decreases
In the demand curve 'DD', which axis shows demand and which axis shows price?
X axis - price, Y axis - demand
What does a high demand pattern at low prices indicate?
The commodity is highly desired by consumers
What is the market demand?
The demand pattern of two or more consumers in the market as per their capacity and willingness
What happens to the market demand as the price decreases?
Market demand increases
Who stated the law of demand according to the text?
Dr. Alfred Marshal
What does the law of demand state according to Dr. Alfred Marshal?
Larger quantity will be demanded at lower price
What assumption is made regarding income in the law of demand?
Income of a consumer should not change
Why is it important for there to be no change in population for the law of demand?
Population change affects demand pattern
What does the graph in the text show about the relationship between price and demand?
An inverse relationship
What does the statement 'other conditions remaining same larger quantity will be demanded at less price' indicate?
'More conditions lead to more demand at lower prices'
What happens to consumer demand when the price is highest according to the schedule in the text?
Consumer demand is lowest
'No change in taste and preference' is an assumption related to:
'The law of demand'
Test your understanding of the concept of demand in commerce with this quiz. Explore the definition of demand and its key characteristics to assess your knowledge.
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