Search results
Results From The WOW.Com Content Network
A good's price elasticity of demand ( , PED) is a measure of how sensitive the quantity demanded is to its price. When the price rises, quantity demanded falls for almost any good ( law of demand ), but it falls more for some than for others.
In microeconomics, the law of demand is a fundamental principle which states that there is an inverse relationship between price and quantity demanded.
In economics, elasticity measures the responsiveness of one economic variable to a change in another. [1] If the price elasticity of the demand of something is -2, a 10% increase in price causes the quantity demanded to fall by 20%.
A substitute good is a good with a positive cross elasticity of demand. This means that, if good is a substitute for good , an increase in the price of will result in a leftward movement along the demand curve of and cause the demand curve for to shift out.
In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. [1] The relationship between price and quantity demand is also called the demand curve.
Demand is chosen to maximize utility given the market price: no one on the demand side has any incentive to demand more or less at the prevailing price. Likewise supply is determined by firms maximizing their profits at the market price: no firm will want to supply any more or less at the equilibrium price.
Economics ( / ˌɛkəˈnɒmɪks, ˌiːkə -/) [1] [2] is a social science that studies the production, distribution, and consumption of goods and services. [3] [4] Economics focuses on the behaviour and interactions of economic agents and how economies work.
The shift from D1 to D2 means an increase in demand with consequences for the other variables. A demand curve is a graph depicting the inverse demand function, [1] a relationship between the price of a certain commodity (the y -axis) and the quantity of that commodity that is demanded at that price (the x -axis).
In economics, aggregate demand ( AD) or domestic final demand ( DFD) is the total demand for final goods and services in an economy at a given time. [1] It is often called effective demand, though at other times this term is distinguished. This is the demand for the gross domestic product of a country.
In economics, an inverse demand function is the mathematical relationship that expresses price as a function of quantity demanded (it is therefore also known as a price function ).