CPT Chapter Law of Demand and Elasticity of Demand
With Bharat Galani.Duration:3hrs 50min
Notes
Index
What is demand?
What influences demand?
Types of demand
Law of demand
Change in Qty demanded vs Change in demand
Elasticity of demand
~Price Elasticity
~Income Elasticity
~Cross Elasticity
What is Demand?
Desire
Means
Willingness -Means to purchase
Expressed :
given price
given period of time
What Influence demand ?
price of Product
Price of Related Products
Income of Household
Taste & Preference of Consumer
Other factors
Law of Demand
Inverse relationship between price and quantity demanded.
other things being equal, if the price of a commodity falls, the quantity demanded of it will rise and if the price of a commodity rises, its quantity demanded will decline.
Why Demand Curve Slopes Downward
Cost-Utility matching
Income Effect
Substitution Effect
Arrival of new consumers
Multiple uses
Exception to the Law of Demand
Conspicuous Goods
Giffen’s Goods
Necessaries
Conspicuous necessities
Future expectation about price
Speculative goods
Irrational Purchases
Summary
Law of Demand
Demand Curve
Slope of Demand Curve
Exceptions to Law of Demand
Elasticity of Demand
Price Elasticity
Income Elasticity
Cross Elasticity
Types of Price Elasticity
Perfectly Inelastic
Relatively Inelastic
Unitary Elasticity
Relatively elastic
Perfectly elastic
CPT Exam Exposure
Introduction to Micro Economics
Show you appreciate by sharing!