Market Demand
3 years ago
Microeconomics
Market demand curve – Curve relating the quantity of a good that all consumers in a market will buy to its price.
Two points should be noted as result of this:
- The market demand curve will shift to the right as more consumers enter the market.
- Factors that influence the demands of many consumers will also affect market demand.
Elasticity of Demand = Ep = ∆Q / Q
∆ P/ P
Isoelastic demand curve – Demand curve with a constant price elasticity.
Speculative demand – Demand driven not by the direct benefits one obtains from owning or consuming a good but instead by an expectation that the price of the good will increase.
Bijay Satyal
Dec 1, 2021