Distinguish between: Chapter 3 - (A) Demand Analysis Economics Solutions for Class 12 Commerce Economics

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
Demand
Desires refer to those wishes that a human being cherishes. 
Demand refers to the quantity of goods that individuals are willing to buy. 
They may or may not be backed by financial power. 
It should be backed by financial power. 
For example: Walking on the moon
For example, a consumer demands 2 kg sugar at Rs 10 per kg and 3 kg sugar at Rs 8 per kg.


2.
Increase in Demand
Decrease in Demand
More quantity is demanded because of the change in factors other than price. 
Less quantity is demanded because of the change in factors other than price. 
It leads to a rightward shift in the demand curve.
It leads to a leftward shift in the demand curve.



3.
Individual Demand
Market Demand
It refers to the demand for a product by a single consumer. 
It refers to the demand for a product by all consumers in the market. 
The demand curve for individual demand is relatively steeper. 
The demand curve for market demand is relatively flatter. 
It represents various quantities of a particular commodity that a consumer (single buyer) is willing to purchase at different possible prices.
It represents various quantities of a particular commodity that all consumers in the market are willing to purchase at different possible prices.

4.

Inferior Goods
Superior Goods
They have a negative relationship with the income of a consumer.
They have a positive relationship with the income of a consumer. 
For example - Maize
For example - Branded clothing