Types of Price Elasticity of Demand

  Alfred Marshall was the first economist to give a clear formulation of price elasticity. It is the ratio of proportionate changes in the quantity demand of a commodity to a given proportionate change on its price. It is the ratio of a relative change in quantity to a relative change in price. A small […]

The Demand Schedule and the Demand Curve

  The demand schedule is generally represented by a table, which shows how the quantity demanded of a good varies with price, other things remaining constant. Table shows a hypothetical demand schedule for jackets sold per month at Mahendranagar. Table Price (In rupees) Quantity demanded (In numbers) 500 450 400 350 300 250 200 150 […]

Factors Influencing the Demand Curve

              Apart from its own place, there are other several factors that determine the nature of the demand curve for a good. We briefly discuss those. 1)   Price of close substitutes and complements: Given other things, if the price of a substitute falls, then the consumer will shift his preference in favor of the […]