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Why is it that more of a commodity is demanded at a lower price than a higher price?
In theoretical economics, people will buy more of something when it's less expensive because they can afford more of it. In the real world that's not always the case: if demand for lead is a million tons a year at $2000 per ton, it was a million tons a year at $1500 per ton and it was also a million tons a year at $3000 per ton, lowering the price of lead to $1000 per ton is not going to cause people to think up new uses for lead!
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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
When the price of a commodity increases the quantity demanded from that commodity is expected to decline?
When the price of a commodity increases, consumers typically react by purchasing less of that commodity, leading to a decline in quantity demanded. This behavior is driven by the law of demand, which states that, all else being equal, higher prices result in lower quantities demanded because consumers may seek substitutes or reduce their overall consumption. Additionally, higher prices can limit affordability, further decreasing demand.
What is the explanation of determinants of demand?
law of demand: the higher the price the lower the demand for the product and vise versa
What are the three characteristics of the demand curve?
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
How does the price affect the supply of commodity?
Normally it's the other way 'round, the supply of a commodity determines the price. I assume if the price were out of line with the supply a lower price would decrease supply and a higher price would increase supply if increasing the supply were possible.
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
Why do people buy more of something at lower prices and less at higher prices?
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).
What is the explanation of determinants of demand?
law of demand: the higher the price the lower the demand for the product and vise versa
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 are the three characteristics of the demand curve?
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
The negative relationship between the quantity demanded of a commodity and its price can be explained by the principle of?
true
How does the price affect the supply of commodity?
Normally it's the other way 'round, the supply of a commodity determines the price. I assume if the price were out of line with the supply a lower price would decrease supply and a higher price would increase supply if increasing the supply were possible.
Factors affecting demand for a commodity?
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
What is the relationship between price and quantity demanded as depicted by the MSC curve?
The relationship between price and quantity demanded as depicted by the MSC curve is that as the price of a good or service increases, the quantity demanded decreases. This is because higher prices typically lead to lower demand from consumers.
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.
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 is a contango position?
A commodity market is in contango if the spot price is lower than the futures price. A contango position is the futures position you hold with a price higher than spot price.
