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

Take Quiz

Theory of Consumer Behaviour

Introduction to Micro Economics

 Show you appreciate by sharing!