DATE

fsSIGNMENT L
Hous e laus o demand help he matketess
Hhat aie he yariqus her deley mars of de man
he lau ai demand eapiesses he velaktmship b/u
pice and qluantily denarda. T a other things Icmaln
he saMe As he maskeler of y fxm USng hs
l s managoYcan fpas out he Amoun+ deman dad
lnCSeaseSwih he fall n phite and dminished
wiha ise lo pxice

he vaiouS toTmS of delem Inanis ot

o fdemand aje
aslollouus
OTastes and hefeences af the ConsuneS
Tncamecame of the Pepple
chayes in ices o he yelaled Caoods
Ad tertis ment pendite
h eThe numbe of ConSamers in he Mayke
(onSumeYS Expeciations with eg0id Ao futule
Psice
Price. o he g06ds
Wrideshot nole on the folloui
Giflen Gosd
Giffen goo ds Ue those gobd5which donot
ollaw the law of demand
Guflen
hen thele 1 a 1Se
m he price ot a Good
m s qluanilydemand
mceaSes and h h e fal in i l qhanily
will
demanded decleaie the omand culve
downwald
Slope upwald to the slght and ot

of Supply
when a0dd i s e s
Hhe phice paid by buyers tara
then h esuppliexs ineasG the Supply of that
goods n e mayketif_all ofheycondition Jemain
canStat

H CToss elasticiby ofdemand

of he_domand For a
he measule ot Nesponsivenes s
good touwardsHhe change n the prtce of 0
Css pue elasBtcily af
ieladed gosd is calles
lu eNTEntage tets
deand I E IS aluays measuked
The conSuMptton bohaluiau being helaled te change
inthe pIIce elaled40ad leads do a change
of o

in the demavd ot anstiar 0ds

+Ve blern Gosds

fo whch de mand for
These axe the lux Iy
These qosd
gso IncXeases s he paice incheas e
a
ae Con St derse Stmbol of
o e dia.monds nciease the e sttge
Okestigeas he ilce
 ATE D
alue ges up heie loic her
Incicaej aliliky on d slabil
Veble ouho pio poun dedhe
nsptciOus Consu mplton docine o
o ff

Wha s the impsh ante o elasBidiy

In ousines s doctstan Contept
King ma
he m povtance ol elasticily ancept s4he sers Hvi
6
guantiiy demand ed of a conn odiky In esponse
4o the chanqe tn factors Jelaled to the
Cammodily

Pice elasBtcily of demand can be seful taal for

Bust nessmav to make CTucia dects ton like
decidte the ptice of 400&s and SEvices TE plays
Uital sale in ther bustness Taducts too

Deletminatton o pifte is a
pilmay objectte ot any
ot any
s to eai ptofro tncYeaje Yevenue ktefore
measu.rtw plce of its product s to maxlmige he

rotres one of the prmety onceris ot

pT6duceS
he elastciy of deMand he basts of dsma
Fnre caskinghe Kaue sge ot incame easttiby s
essential demand oeastinm opiod ulc.ble gad n
ukare
In the dele+minakion of hovt Pslictes Bee
impostng statutory p1ke the
Contasl on fhe produet he gavehert

MLJt Consider the <b.sttcly of demand Por u roduct

10
bilt PAGE
 Describe. vaiouS me thods of easue ment of domand
*Pacenhage or hoprltonal Method Unde as me tbad the
elaslhaly of danand measue.d b he atha lb/
onae af pextendage change the propa
and p parklng
in
quantily demandee-
S alSa Knauinas changeIn uahtily_pile 4
toxmala melhod
pe ndiHuie or Outlay Methad
his melkod wa
developed by orshall. under thts nehe
he ebsltciky is measuled by
n expendiiute as a \esule
estimadina the changes
of changa n 1 e and
quanttly donan dad L hS e e Compmn.ends
I f he pie changes but ekpehdikuke kenalns
constant un
elastcily exts
T he pitce change buE SpenditaBemoves
ditectlon demand ts'elasfte la he
(>)
Tthe pTice ehande but 4otal
evene oves in he Sane
dlTecton denand Is lnelasBic({1)

COnetric ay Polht methnd

Ihis als0 developed bMaxs
hall Ths s as a
used
measure af he chanqe n quandily omanddtn lepon ie
to ve hoalL chante in the de mand by Us Ing follou
Fumula
ED er_secton of Demand Cunve
Upper Sectlon of Demend Curve