Chapter 3 - (A) Demand Analysis
Economics Solutions for Class 12 Commerce Economics
Question 3(A):
Distinguish between:
1. Desire and demand
2. Increase in demand and decrease in demand
3. Individual demand and market demand
4. Inferior goods and superior goods
ANSWER:
1.
Desire
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Demand
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Desires refer to those wishes that a human being cherishes.
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Demand refers to the quantity of goods that individuals are willing to buy.
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They may or may not be backed by financial power.
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It should be backed by financial power.
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For example: Walking on the moon
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For example, a consumer demands 2 kg sugar at Rs 10 per kg and 3 kg sugar at Rs 8 per kg.
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2.
Increase in Demand
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Decrease in Demand
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More quantity is demanded because of the change in factors other than price.
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Less quantity is demanded because of the change in factors other than price.
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It leads to a rightward shift in the demand curve.
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It leads to a leftward shift in the demand curve.
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3.
Individual Demand
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Market Demand
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It refers to the demand for a product by a single consumer.
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It refers to the demand for a product by all consumers in the market.
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The demand curve for individual demand is relatively steeper.
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The demand curve for market demand is relatively flatter.
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It represents various quantities of a particular commodity that a consumer (single buyer) is willing to purchase at different possible prices.
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It represents various quantities of a particular commodity that all consumers in the market are willing to purchase at different possible prices.
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4.
Inferior Goods
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Superior Goods
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They have a negative relationship with the income of a consumer.
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They have a positive relationship with the income of a consumer.
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For example - Maize
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For example - Branded clothing
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