class 12 economics Demand and law of demand notes
Demand and law of demand ..........short and easy notes for board exam. 1. What do you mean by demand? What are its Essential elements? > demand is an amount of a things which a person is willing to buy at a given price during a given time. Following are its Essential elements; Desire of a goods. Sufficient resources to buy a goods. Willing to spend. At a given price. At a given time. 2. What is demand function? > functional relationship between demand of a goods and factor affecting it. There are two demand function; Individual demand function- it is the relation between demand for a goods and its factors affecting it for a consumer. It can be express through following equation; Dx = F(P x ,P r ,T,Y) or Dx = F(P x ) Where, D x = demand for goods X. P x = price of goods X. P r = price of related goods. T = Test of consumer. Y = income of consumer. F = expectation of change in price in future. Market demand function - it is the relationship between market demand of any...