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The law of demand states that the quantity of a good demanded varies?
Wiki User
∙ 14y ago
Inversely with its price.
Wiki User
∙ 14y ago
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Describe the law of demand?
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.
What are the factors that influence demand inelasticity?
Demand inelasticity with regard to price means that the quantity demanded of a product or service varies little even as the price varies greatly. This may happen, for example, when the product or service is relatively essential, when there are few if any substitutes or complements, or when the price, however much it varies, is an inconseqential amount compared to the income of the consumer. Technology can also affect the amount demanded. It is also necessary to define the use of the product. For example, electricity as a product is used for heating homes, air conditioning, watching television, and running a computer. Though the product is physically the same (flow of electrons) for all purposes, the demand is not similarly elastic for all uses. Electricity used for heating in a cold climate may be rather essential, but there are usually alternatives such as oil, propane, wood, gas, etc. It requires large quantities of electricity for this task, so it is often a large part of the household budget, and there are technological options (heat pumps vs. resistance baseboard heat) and readily available complements (insulation and storm windows), for example. The quantity of electricity demanded for heating, therefore should be rather elastic over the long run. Televisions and computers use relatively a lot less electricity, there is no substitute, the cost is not great relative to the typical household's income, so the quantity demanded of electricity for these purposes should not vary greatly as the price varies.
A quantity that varies or changes?
variable
What economic law states that the quantity of a good or service that consumers will buy varies inversely with the price of the good or service?
India's national animal is tiger
Is price elasticity constant along demand curves?
explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.
Describe the law of demand?
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.
What are the factors that influence demand inelasticity?
Demand inelasticity with regard to price means that the quantity demanded of a product or service varies little even as the price varies greatly. This may happen, for example, when the product or service is relatively essential, when there are few if any substitutes or complements, or when the price, however much it varies, is an inconseqential amount compared to the income of the consumer. Technology can also affect the amount demanded. It is also necessary to define the use of the product. For example, electricity as a product is used for heating homes, air conditioning, watching television, and running a computer. Though the product is physically the same (flow of electrons) for all purposes, the demand is not similarly elastic for all uses. Electricity used for heating in a cold climate may be rather essential, but there are usually alternatives such as oil, propane, wood, gas, etc. It requires large quantities of electricity for this task, so it is often a large part of the household budget, and there are technological options (heat pumps vs. resistance baseboard heat) and readily available complements (insulation and storm windows), for example. The quantity of electricity demanded for heating, therefore should be rather elastic over the long run. Televisions and computers use relatively a lot less electricity, there is no substitute, the cost is not great relative to the typical household's income, so the quantity demanded of electricity for these purposes should not vary greatly as the price varies.
A quantity that varies or changes?
variable
What economic law states that the quantity of a good or service that consumers will buy varies inversely with the price of the good or service?
India's national animal is tiger
How does product life cycle effect the production?
As there are many stages of a product life cycle the production varies greatly. During the introduction stage production is low as the demand for the product is low and the producer does not want to be left with surplus as demand might alter. In growth the production rapidly increases as more is being demanded. the laws of demand cause supply to increase in order for the producer to maximize profits. In the Maturity stage the production levels off and does not increase much as the demand has reached its peak and no more is being demanded. This is due to the product becoming obsolete or unfashionable. In the Decline stage, the production decreases as less is being demanded therefore the producer will make less of the product as they do not want to be left with surplus as demand is now negative.
How does a product life cycle effect the production?
As there are many stages of a product life cycle the production varies greatly. During the introduction stage production is low as the demand for the product is low and the producer does not want to be left with surplus as demand might alter. In growth the production rapidly increases as more is being demanded. the laws of demand cause supply to increase in order for the producer to maximize profits. In the Maturity stage the production levels off and does not increase much as the demand has reached its peak and no more is being demanded. This is due to the product becoming obsolete or unfashionable. In the Decline stage, the production decreases as less is being demanded therefore the producer will make less of the product as they do not want to be left with surplus as demand is now negative.
How many runways are there in a airfield?
It varies according to demand.
Why are variables used in expressions?
They take the place of an unknown quantity. They can change values, thus they are called variables, their quantity varies.
What is a direct square variation?
one quantity varies directly as the square of the other quantity. in symbols, y = kx squared
Whats the capacity of a gas tank?
The capacity varies: there is no standard quantity.
Is price elasticity constant along demand curves?
explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.
What quantity does the slope of the line represent?
This varies in different fields but is usually known as a derivative.
