Question

Please answer all

a.Explain, discuss, and give a real world example of Demand (D).

b.Explain, discuss, and give a real world example of Quantity Demanded (Qd).

c.Explain, discuss, and give a real world example of the Law of Demand.

d.Explain, discuss, and give a real world example of Supply (S).

e.Explain, discuss, and give a real world example of Quantity Supplied (Qs).

f.Explain, discuss, and give a real world example of the Law of Supply.

Answer 1

a) Demand: Demand for a commodity refers to the desire to buy a commodity backed with sufficient purchasing power and the willingness to spend.

Example: Demand of colors in India increases during Holi festival.

b) When demand of a commodity changes due to change in price than it is known as change in quantity demanded and it leads to movement in the demand curve.

Example: When price of Dairy milk increases then demand of it decreases.

c) Other things remaining the same, when price of commodity increases its demand decreases and vice-versa. There is inverse relationship between price of commodity and its quantity demanded.

Example: When price of McD burger increases then its demand decreases and when price falls then its demand increases.

d) Supply of a commodity refers to a schedule showing various quantities of a commodity that the producers are willing to sell at different possible prices of the commodity at a point of time.

Example: Supply of tomatoes in the market increases when there is La Tamatino festival.

e) When supply of commodity changes due to change in the price of commodity then it causes change in quantity supplied.

Example: Decrease in the price of beans reduces the supply of beans by the retailers.

f) Law of supply states that there is a direct relationship between the price of a commodity and its quantity supplied, keeping other factors constant. Therefore, more is supplied at a higher price and vice-versa.

Example: Supply of onion increases when price of onion increases in the market and vice-versa.