when the price of a commodity is high,consumers will go for another product almost the same as the one that the price is high,so that makes the quantity demanded of the commodity that the price low and vice versa
Characterstics of demand curve are-- 1) It is a curve from left to right 2) It shows the quantity demanded and price of a commodity 3) Higher the price lesser is the quantity demanded and vice-versa
law of demand: the higher the price the lower the demand for the product and vise versa
Decrease in quantity demanded usually results from an increase in price and vice versa. When the price of a product increases, the demand curve itself is not affected. However, the quantity demanded decreases to a higher point along the demand curve.
When income rises, and the quantity of a commodity remains stable, one can expect a number of things to happen. One is that the price of the commodity will rise. That of course ties into the fact that demand will rise with higher income. Eventually, however, the quantity of the commodity will rise to meet demand.
If Qd is higher than Qs, there is a shortage of the good because the price is too low. This happens many times when the government institutes a price ceiling (maximum) that is below the market equilibrium.
Characterstics of demand curve are-- 1) It is a curve from left to right 2) It shows the quantity demanded and price of a commodity 3) Higher the price lesser is the quantity demanded and vice-versa
law of demand: the higher the price the lower the demand for the product and vise versa
the law of demand. an inverse relationship between the quantity demanded and the price of the product (the lower the price the higher the quantity demanded).
Decrease in quantity demanded usually results from an increase in price and vice versa. When the price of a product increases, the demand curve itself is not affected. However, the quantity demanded decreases to a higher point along the demand curve.
When income rises, and the quantity of a commodity remains stable, one can expect a number of things to happen. One is that the price of the commodity will rise. That of course ties into the fact that demand will rise with higher income. Eventually, however, the quantity of the commodity will rise to meet demand.
If Qd is higher than Qs, there is a shortage of the good because the price is too low. This happens many times when the government institutes a price ceiling (maximum) that is below the market equilibrium.
Yes. Its a price ceiling. In other words, the true price that would put the market in equilibrium is much higher than the artificially applied ceiling. Since quantity demanded on a commodity increases as price decreases, people will want more if the price is artificially low. This leads to people wanting more housing than what actually exists. There is no incentive to build more housing because you cant get the market price for your building. If the market were allowed to adjust naturally, rent would go up and people would move to a town with lower rent.
A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa.
When there is a shortage of goods, it means that the quantity demanded for the good is higher than the quantity supplied for the good, thus, the supply and demand are not in equilibrium. Because the good is in such great demand, sellers can usually increase the price of the good without losing business. The price will rise, but as price rises, because of the increase in price, the quantity demanded by consumers will fall, the quantity supplied will rise, and, of course, because the market is always striving to be in equilibrium, it naturally moves back toward the equilibrium point between supply and demand.
The higher the quality demanded, the more tolerance there is for higher prices. Customers will still seek the lowest-priced option that meets their quality demands, but will generally not settle for lower-priced items that are not of sufficient quality.
price of a commodity, the higher the prices, the lower the demand if there is not a equiblirum condition between demand and supply then it affect commodity demand , inflation and income, and monopoly in some commodity in some area is also affect demand of commodity
At market equilibrium, the price and quantity demanded are at a point where they will not vary much. Consumers are unwilling to buy the good at a higher price. Producers are unwilling to produce anymore goods at the same price.