Economics Assignment | Concept Of Demand

Added on - 24 Feb 2020

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Running head: ECONOMICS ASSIGNMENTECONOMICS ASSIGNMENTName of the studentName of the universityAuthor note
1ECONOMICS ASSIGNMENTPart A-IntroductionConcept of demand-Demand is the willingness or the wants and necessities made by the consumers or the customers.It means the willingness to purchase a commodity in exchange of money at a place calledmarket. It includes the factors of price and quantity. Law of demand says that with the rise inprice creates less demand, on the other side fall in price will create more demand and purchasingpower for the product. Demand is downward negatively sloping curve, movements in demand isdependent on other economic variables like price, income (Market demand-Market demand includes the summation of or addition of all the individual demands of theconsumers. Adding the collection of individual demands gives the market demand. When themarket demand is in table format, it is market demand schedule.Elasticity of demand-Price Elasticity of demand on the other hand states the relation between price and the quantitydemanded that is demand varies with respect to a change in prices. In order to calculate priceelasticity mathematically, it is the ratio between percentage changes in quantity demand withrespect to change in price. There are five types of demand elasticity and they are perfect elastic,perfect inelastic, relative elastic, and relative inelastic and unit elastic (Kattuman, Ibragimov &Ibragimov 2017).
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