Answer the following questions
What do you mean by demand?
ANSWER:
Demand for a commodity refers to various quantities of the commodity that a consumer is willing to purchase at various possible prices. For example, a consumer demands 2 kg sugar per week at Rs 10 per kg and 3 kg sugar per week at Rs 8 per kg. It must be noted that price of commodity and time are two important elements when referring demand.
Demand for a commodity has the following features.
1. Utility derived from consumption of a commodity is the basis of demand.
2. Price of commodity and time are two important elements in context of demand.
3. Demand for a commodity is a relative concept.
