030 Chapter Notes -Graph Paper
Document Summary
The following factors are the determinants of demand for the commodity 1. Income of the consumer: price of the related commodities. Conception of the customer regarding future price, 6. If the consumer purchase the commodity by seeing the purchase of other consumer then it is called demonstration effect. The commodity which are used simultaneously is called complementary commodities. , for example petrol and car. At a fixed time, the different amount of demand of any commodity at different price, the consumer want to purchase when expressed in the graph paper is called demand curve. Demand curve is downward sloping for normal commodity. The functional relation of dependence between the demand for the commodity and determinants of demand is demand function. For example in any fixed time keeping the other determinants of demand as constant, the relation between the price of the commodity (p) with the demand for that commodity (d) will be.
