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State and explain the law of demand?
The law of demand states that there an inverse relation between change in price of good and the consequent change in demand for bad goods, assuming no change in all other factors influencing demand for that good.
Factors that influence consumer demand for goods and services?
1.price of good and services 2.price of goodsand services in relation to other goods and services 3.taste and refrences 4.income
What is price of related goods in demand?
Price of related goods in demand means prices of substitute goods and complementary goods.
How do complements affect demand?
Because of complimentary goods demand increase.
Is the income elasticity of demand different for normal and inferior goods?
Yes, the income elasticity of demand is different for normal and inferior goods. Normal goods have a positive income elasticity of demand, meaning that as income increases, the demand for these goods also increases. In contrast, inferior goods have a negative income elasticity of demand, indicating that as income rises, the demand for these goods decreases.
Why was there an overproduction of consumer goods during the Great Depression?
People could afford to buy as many goods during the depression, and thus there was a much lower demand in relation to the supply of goods that was provided. This led to an overproduction of goods--too many were produced in relation to the amount that was demanded.
State and explain the law of demand?
The law of demand states that there an inverse relation between change in price of good and the consequent change in demand for bad goods, assuming no change in all other factors influencing demand for that good.
Define convenience goods?
those goods which we purchase without gathering additional information or putting extra effort are called convenience goods.
Factors that influence consumer demand for goods and services?
1.price of good and services 2.price of goodsand services in relation to other goods and services 3.taste and refrences 4.income
What is convenience goods?
Convenience goods are Widely distributed and relatively inexpensive goods which are purchased frequently and with minimum of effort, such as gasoline (petrol), newspapers, and most grocery items .
What are the subdivisions of convenience goods?
Convenience goods can be further divided into staple, impulse, and emergency goods. Staple goods are products--such as bread and milk, coffee, and tooth-paste--that consumers buy on a consistent basis.
What is price of related goods in demand?
Price of related goods in demand means prices of substitute goods and complementary goods.
How do complements affect demand?
Because of complimentary goods demand increase.
Will there always be a demand for goods?
Goods fill needs; so as long as there is human life, there will be a demand for goods.
Is the income elasticity of demand different for normal and inferior goods?
Yes, the income elasticity of demand is different for normal and inferior goods. Normal goods have a positive income elasticity of demand, meaning that as income increases, the demand for these goods also increases. In contrast, inferior goods have a negative income elasticity of demand, indicating that as income rises, the demand for these goods decreases.
How does price help to connect the availability of goods to the demand for goods?
The price of a given commodity will determine both the demand and the availability of goods. If the price is reduced the demand of the goods will increase and the availability of the goods will reduce.
What do you call in economic terms buying and selling of goods?
Demand and Supply. Demand= buying goods and services. Supply=selling goods and services.
