The law of demand indicates the direction of change in quantity demanded in response to a change in price. It does pot precisely express the magnitude of change in amount demanded in response to a change in price.
A demand curve is the graphical representation of the demand schedule for a commodity. It is the graphic statement of an individual buyer's reaction on amount demanded at a given price in the given point of time.
Demand changes due to two factors. Firstly demand changes due to price and secondly demand changes on account of changes in other factors other than price.
The difference between individual demand schedule and market demand schedule are:
In Economics demand shows the relationship between the prices of a commodity and the quantity of the commodity which the consumer wants to buy at those prices.
The new development in communal politics in India was the propagation of the 'two nation theory'. According to this theory, India consisted of two separate nations — Hindus and Muslims.
Generally, desire and demand are treated as synonyms but there is a vast difference between these two terms in economics. By desire we mean the desire to have a commodity. The phenomenon of unlimited wants is the result of such a desire. However, every desire is not a demand.
Demand function explains the relationship between demand of a commodity and the various factors influencing it. In other words, demand function explains the relationship between demand and its various determinants. At a time the quantity demanded of 3 commodities depends on the following four factors;
The law of demand states that that there is and inverse relationship between price and quantity demanded. However, it does not explain as to how much change will take place in demand as a result of a given change in price.
Elasticity of demand differs from commodity to commodity. Not only that, elasticity of demand of the same commodity may be different for different persons. These differences in elasticity of demand are due to various causes, which are discussed below: