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As the price of a commodity falls quantity demanded of that commodity increases. Explain the extent to which this statement can apply?
Wiki User
∙ 11y ago
it depends entirely upon the elasticity of the demand. medication which could stop otherwise terminal cancer would have a inelastic demand curve, you will pay whatever it costs up to your extent to pay, or your insurance plans ability to pay. The quantity that you would buy does not vary by price. But products which have readily available alternatives would have very elastic demand curves, such as a particular brand of corn. Should something like peruvian blue corn become too expensive, other types of corn would take it's market share. Should it become much cheaper than most corns, it would gain market share.
Wiki User
∙ 11y ago
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Discuss the higher the price of the commodity the lower the quantity demanded and vice versa?
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
What causes an increase in the quantity supplied?
when the price of the commodity increases
A demand schedule shows the relationship between the quantity demanded of a commodity over a given peiord of time and?
quantity supplied
According to the law of demand As prices rise ceteris paribus demand increases demand decreases quantity demanded decreases quantity demanded increases?
According to the law of demand, as the price of a good or service increases (ceteris paribus), the quantity demandeddecreases (and vice versa).
What is price determinant?
The price determinates are the factors that will determine the price of a particular commodity, These factors are quantity supplied, quantity demanded and the cost of production.
Why is price of a commodity is inversly related to quantity demand?
The price of a commodity is inversely related to quantity demanded because as the price of a commodity decreases, more consumers are willing and able to purchase it due to increased affordability. This leads to an increase in quantity demanded. Conversely, as the price of a commodity increases, the quantity demanded tends to decrease as consumers may find it less affordable or seek alternative options.
What is the principle of demand?
The law of demand states that all other things being equal, as the price of a commodity falls quantity demanded increases and vice versa.
Discuss the higher the price of the commodity the lower the quantity demanded and vice versa?
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
The negative relationship between the quantity demanded of a commodity and its price can be explained by the principle of?
true
What causes an increase in the quantity supplied?
when the price of the commodity increases
A demand schedule shows the relationship between the quantity demanded of a commodity over a given peiord of time and?
quantity supplied
According to the law of demand As prices rise ceteris paribus demand increases demand decreases quantity demanded decreases quantity demanded increases?
According to the law of demand, as the price of a good or service increases (ceteris paribus), the quantity demandeddecreases (and vice versa).
What is price determinant?
The price determinates are the factors that will determine the price of a particular commodity, These factors are quantity supplied, quantity demanded and the cost of production.
What determine price?
The price determinates are the factors that will determine the price of a particular commodity, These factors are quantity supplied, quantity demanded and the cost of production.
As price falls quantity demanded?
increases assuming cetaris peribus
What is theory of demand in economics?
The theory of demand states that the relation between price and quantity demanded is inversely proportional i.e. if prices go up, quantity demanded falls if prices go down, quantity demanded increases
What is a price cut when the demand for a normal good is price inelastic?
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
