1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Slav-nsk [51]
3 years ago
9

write a short paragraph about demand using all of the following terms: law of demand, quantity demanded, law of diminishing marg

inal utility, real income effect, substitution effect, demand curve, price elasticity of demand.
History
1 answer:
erastova [34]3 years ago
8 0

Answer:Law of demand is one sided as it only explains the effect of change in price on the quantity demanded. It states nothing about the effect of change in quantity demanded on the price of the commodity.

Derivation of ‘Law of Demand’:

According to the law of demand, demand for a commodity rises with fall in its price and vice-versa, keeping other factors constant. This inverse relationship between price and demand as given by Law of demand, can be derived by: (i) ‘Marginal Utility’ = Price’ Condition; and (ii) Law of Equi-Marginal Utility.

Explanation:

It states the inverse relationship between price and quantity demanded. It simply affirms that an increase in price will tend to reduce the quantity demanded and a fall in price will lead to an increase in the quantity demanded.

2. Qualitative, not Quantitative:

It makes a qualitative statement only, i.e. it indicates the direction of change in the amount demanded and does not indicate the magnitude of change.

3. No Proportional Relationship:

It does not establish any proportional relationship between change in price and the resultant change in demand. If the price rises by 10%, quantity demanded may fall by any proportion.

4. One-Sided:Law of demand is one sided as it only explains the effect of change in price on the quantity demanded. It states nothing about the effect of change in quantity demanded on the price of the commodity.

Derivation of ‘Law of Demand’:

According to the law of demand, demand for a commodity rises with fall in its price and vice-versa, keeping other factors constant. This inverse relationship between price and demand as given by Law of demand, can be derived by: (i) ‘Marginal Utility’ = Price’ Condition; and (ii) Law of Equi-Marginal Utility.

You might be interested in
The First Great Awakening in the American colonies...
timofeeve [1]
The answer is number 1.
4 0
3 years ago
How did the English, Spanish, and French FIRST gain the land they colonized in North America?
IrinaK [193]

Answer:

I think it's B hopefully it will be useful

5 0
3 years ago
What was the United States' greatest concern about its former ally, the Soviet Union?
vitfil [10]
That they would take control of the world
7 0
3 years ago
What is the follower of the religion Islam
Ierofanga [76]
A follower of the religion, Islam, is called a Muslim.

Hope this helps!
6 0
3 years ago
Read 2 more answers
As the british empire began to dissolve and its colonies gained independence, a new political entity emerged called
zubka84 [21]
The British Commonwealth.
6 0
3 years ago
Other questions:
  • Which statement best describes Georgia’s first government as a royal colony?
    13·2 answers
  • True or False: A bill cannot become a law if the president does not sign it
    12·1 answer
  • Plz help in the picture below for 20 <br> points and brainliest
    8·2 answers
  • Which statement accurately describes Kublai Khan?
    8·1 answer
  • 15. After the fall on Communism in Eastern Europe in 1990, President Bush
    11·1 answer
  • 3 Over two years, how much more will a savings account with a simple interest rate of 4.2% yield in earnings than a savings acco
    6·1 answer
  • Compare and discuss the immorality of all the participants of World War II.
    6·2 answers
  • American <br> He's an American who fought in the Italian war.
    6·1 answer
  • Explain the different events during John Adams Presidency.
    13·1 answer
  • What was the purpose of the "blaxploitation" films of the 1970s?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!