Maharashtra Board Class 12 Economics Chapter 3A Demand Analysis Solutions

1. Complete The Following Statements:

Question 1.The relationship between demand for goods and price of its substitute is ............
(a) direct
(b) inverse
(c) no effect
(d) can be direct and inverse
Answer: (a) direct
In simple words: When the price of a substitute good increases, the demand for the original good also increases because consumers switch to the relatively cheaper alternative.

🎯 Exam Tip: Understanding the relationship between goods (substitutes, complements) is crucial for explaining demand shifts and scoring well in microeconomics.

 

Question 2.The relationship between income and demand for inferior goods is .............
(a) direct
(b) inverse
(c) no effect
(d) can be direct and inverse
Answer: (b) inverse
In simple words: For inferior goods, as a consumer's income rises, their demand for these goods tends to fall, as they opt for higher-quality alternatives.

🎯 Exam Tip: Distinguish clearly between normal and inferior goods when analyzing the impact of income changes on demand; this is a common point of confusion.

 

Question 3.Symbolically, the functional relationship between Demand and Price can be expressed as .................
(a) D = f(Px)
(b) Dx = f (P2)
(c) D = f(y)
(d) D = f(T)
Answer: (a) D = f(Px)
In simple words: This expression, D = f(Px), states that the demand (D) for a commodity is a function (f) of its own price (Px), indicating how price influences demand.

🎯 Exam Tip: Memorize the standard functional forms for demand and supply as they are fundamental to economic analysis and often appear in short answer questions.

 

Question 4.When less units are demanded at high price it shows .................
(a) increase in demand
(b) expansion of demand
(c) decrease in demand
(d) contraction in demand
Answer: (d) contraction in demand
In simple words: Contraction of demand occurs when a higher price leads to a decrease in the quantity demanded, assuming all other factors remain constant.

🎯 Exam Tip: Differentiate between "contraction/expansion of demand" (movement along the curve due to price changes) and "increase/decrease in demand" (shift of the curve due to non-price factors).

 

2. Give Economic Terms

Question 1.1. A situation where more quantity is demand at lower price................
Answer: (1) Expansion or Extension of Demand
In simple words: This term describes the situation where consumers buy more of a good solely because its price has fallen, leading to a movement along the demand curve.

🎯 Exam Tip: This concept highlights the inverse relationship between price and quantity demanded, a cornerstone of the Law of Demand.

 

Question 2.2. Graphical representation of demand schedule..
Answer: (2) Demand Curve
In simple words: A demand curve is a visual representation showing the quantities of a good consumers are willing to buy at different prices, typically sloping downwards.

🎯 Exam Tip: Be prepared to draw and interpret demand curves, labeling axes correctly and identifying shifts versus movements along the curve.

 

Question 3.3. A commodity which can be put to several uses.
Answer: (3) Composite Demand
In simple words: Composite demand refers to a good that has multiple uses, and an increase in demand for one use can affect its availability and price for other uses.

🎯 Exam Tip: Recognizing examples of composite demand (like milk, electricity) helps illustrate how demand for one purpose can influence the market for another.

 

Question 4.4. More quantity is demanded due to changes in the factors determining demand other than price......
Answer: (4) Increase in Demand
In simple words: An increase in demand means that consumers are willing to buy more of a good at every price level, caused by factors other than the good's own price, leading to a rightward shift of the demand curve.

🎯 Exam Tip: Factors causing an "increase in demand" (e.g., income rise for normal goods, change in tastes) are distinct from price-induced changes and lead to a new demand curve.

 

Question 5.5. A desire which is backed by willingness to purchase and ability to pay............
Answer: (5) Demand
In simple words: For a desire to become economic demand, it must be supported by both the consumer's willingness to buy and their financial ability to pay for the good or service.

🎯 Exam Tip: This definition is fundamental to economics; ensure you understand that mere desire is not enough to constitute demand in a market context.

 

3. Distinguish Between:

Question 1.Desire and Demand
Answer:

Desire	Demand
1. Desire is a mere wish for something. For example desire for a chartered plane.	1. Demand refers to desire backed by ability and willingness to pay for a particular commodity.
2. Desire has no limits.	2. Demand is limited by ability to pay and willingness to pay.
3. Desire is not related or dependent on price.	3. Demand is inversely related to price.
4. Desire is wider in scope as it includes demand.	4. Demand is narrow in scope as it is a part of desire.
5. Example: Desire of a beggar to own a car.	5. Example: Demand for a BMW Car by business man who has ability and willingness to pay.

In simple words: Desire is simply wanting something, while demand is a desire coupled with the financial capacity and willingness to actually buy it.

🎯 Exam Tip: When distinguishing, focus on the economic components of demand (ability and willingness to pay) versus the psychological aspect of desire.

 

Question 2.Expansion of demand and Contraction of demand
Answer:

Expansion of demand	Contraction of demand
1. Expansion of demand refers to a rise in demand only due to a fall in price.	1. Contraction of demand refers to a fall in the demand due to a rise in price.
2. Expansion of demand takes place solely due to falling in price. All other factors affecting demand remain constant.	2. Contraction of demand takes place solely due to a rise in price. All other factors affecting demand remain constant.
3. Expansion of demand is shown by a downward movement on the same demand curve.	3. Contraction of demand is shown by an upward movement on the same demand curve.

In simple words: Both expansion and contraction of demand describe movements along the *same* demand curve due to changes in the good's own price; expansion is a quantity increase due to a price fall, and contraction is a quantity decrease due to a price rise.

🎯 Exam Tip: Always remember that expansion and contraction are movements ALONG the curve, while increase and decrease are SHIFTS of the entire curve.

 

Question 3.Increase in demand and Decrease in demand
Answer:

Increase in Demand	Decrease in Demand
(a) Increase in demand refers to a rise in demand due to changes in other factors, price remaining constant.	(a) Decrease in demand refers to fall in demand due to changes in other factors, price remaining constant.
(b) Increase in demand occurs when more is purchased at the same price.	(b) Decrease in demand occurs when less is purchased at the same price.

In simple words: An increase in demand is when the entire demand curve shifts right, meaning more is bought at any given price due to non-price factors, whereas a decrease in demand is a leftward shift, meaning less is bought at any given price.

🎯 Exam Tip: Clearly differentiate between shifts in the demand curve (due to factors like income, tastes, related goods' prices) and movements along it (due to the good's own price).

 

4. State With Reasons Whether You Agree Or Disagree With The Following Statements:

Question 1.Demand curve slopes downward from left to right.
Answer:Yes, I agree with this statement. Reasons justifying downwards sloping demand curve are as follows:

• The law of Diminishing Marginal Utility: Marginal utility goes on diminishing when there is increase in the stock of commodity and consumer tends to buy more when price falls and vice-versa.
• Income Effects: Whenever there is a fall in price of a commodity, purchasing power of a consumer gets increased, which enables him to buy more of that commodity.
• Substitution Effect: When price of commodity rises consumer tends to buy more of cheaper substitute goods and less of the commodity whose price has increased.
• Multi-purpose Uses: When a commodity can be used for satisfying multiple needs, its demand will rise with a fall in its price and vice-versa.
• New Consumers: When there is fall in price of a commodity, a new consumer class buy the commodity as they can afford it. Thus total demand for commodity increases with fall in price.

In simple words: The demand curve slopes downwards because, generally, as the price of a good falls, consumers are willing and able to buy more of it due to increased purchasing power, the availability of substitutes, and the law of diminishing marginal utility.

🎯 Exam Tip: Always remember the fundamental reasons (Law of Diminishing Marginal Utility, Income Effect, Substitution Effect) for the downward slope of the demand curve, as this is a core concept.

 

Question 2.Price is the only determinant of demand. OR Price is the only factor that affects demand for a commodity
Answer:No, I do not agree with the given statement. This is because there are various factors that determine demand other than price. Reason: The following are a few determinants:

• Income of the consumer - Change in the income of the consumer also affects the market demand for goods. The effect of the change in income on the market demand depends on the type of the good.
• Type of Good - The market demand for normal goods shares a positive relationship with the consumer's income. The market demand for inferior goods (such as coarse cereals) has a negative relationship with the consumer's income. The market demand for Giffen goods also has a negative relationship with the income.
• Consumer's tastes and preferences - Consumers' tastes and preferences highly influence the demand for goods. Other things being constant, if all consumers prefer a commodity over another, then the market demand for that commodity increases and vice versa.
• Population size - The market demand for a commodity is also affected by the population size. Other things being equal, an increase in the population size increases the market demand for a commodity and vice-versa. This is because with the change in population size, the number of consumers in the market changes.

In simple words: While price is a significant factor, many other elements like consumer income, tastes, prices of related goods, and population size also influence demand, causing the demand curve to shift.

🎯 Exam Tip: Listing multiple determinants beyond price (e.g., income, population, substitutes, tastes) is crucial for a complete answer and demonstrates a thorough understanding of demand analysis.

 

Question 3.When price of Giffen goods fall, the demand for it increases.
Answer:I Disagree with the statement. Reason: When price of Giffen goods falls, the demand for its decreases. Inferior goods or low-quality goods are those goods whose demand does not rise even if their price falls. At times, demand decreases when the price of such commodities fall. Sir Robert Giffen observed this behaviour in England in relation to bread declined, people did not buy more because of an increase in their real income or purchasing power. They preferred to buy superior-good like meat. This is known as Giffen's paradox.
In simple words: For Giffen goods, a fall in price paradoxically leads to a decrease in demand because the income effect outweighs the substitution effect, prompting consumers to switch to superior goods.

🎯 Exam Tip: Giffen goods are a rare exception to the Law of Demand; defining them correctly and explaining Giffen's Paradox is key to demonstrating advanced economic understanding.

 

5. Observe The Following Table And Answer The Following Questions:

Question 1.Quantity demanded

Price per kg. (in Rs.)	Consumer A	Consumer B	Consumer C	Market demand (in kgs) (A+B+C)
25	16	15	12
30	12	11	10
35	10	09	08
40	08	06	04

a) Complete the market demand schedule.
b) Draw market demand carve based on above market demand schedule.
Answer:a)

Price per kg (in Rs.)	Consumer A	Consumer B	Consumer C	Market Demand (in kgs) (A+B+C)
25	16	15	12	43
30	12	11	10	33
35	10	09	08	27
40	08	06	04	18

b)
ℹ️ चित्र व्याख्या (Diagram Explanation): यह चित्र एक बाजार मांग वक्र (Market Demand Curve) को दर्शाता है। Y-अक्ष पर कीमत (Rs.) और X-अक्ष पर कुल मांगी गई मात्रा (किलो में) दिखाई गई है। वक्र (DD) बाएं से दाएं नीचे की ओर ढलान वाला है, जो कीमत और मांगी गई मात्रा के बीच विपरीत संबंध को दर्शाता है। यह विभिन्न उपभोक्ताओं की व्यक्तिगत मांगों का योग है।
In simple words: The completed schedule shows that as the price of the commodity increases, the total market demand for it decreases, illustrating the law of demand. The market demand curve visually represents this inverse relationship between price and quantity demanded by summing individual demands.

🎯 Exam Tip: When completing demand schedules, remember that market demand is the sum of individual demands at each price level. For diagrams, always label axes correctly and draw a downward-sloping curve to represent the law of demand.

 

Question 2.Observe the given diagram and answer the following questions:
ℹ️ चित्र व्याख्या (Diagram Explanation): यह चित्र मांग वक्र में बदलाव को दर्शाता है। मूल मांग वक्र DD है। D1D1 वक्र मांग में वृद्धि (दाएं ओर शिफ्ट) को दर्शाता है, जबकि D2D2 वक्र मांग में कमी (बाएं ओर शिफ्ट) को दर्शाता है। कीमत (P) स्थिर रहती है, और गैर-कीमत कारकों के कारण मात्रा में परिवर्तन होता है।
1) Rightward shift in demand curve ......................
2) Leftward shift in demand curve ......................
3) Price remains ......................
4) Increase and decrease in demand comes under ......................
Answer:
1. Increase in demand (D1D1).
2. Decrease in demand (D2D2).
3. Constant.
4. Change in demand.
In simple words: The diagram illustrates that changes in demand (shifts of the entire curve) are caused by non-price factors, leading to either an increase (rightward shift) or a decrease (leftward shift) in quantity demanded at the same price.

🎯 Exam Tip: Accurately identifying shifts (increase/decrease) versus movements (expansion/contraction) is critical for distinguishing between changes due to price and changes due to other determinants of demand.

 

Question 3.Explain the diagrams:
A)
ℹ️ चित्र व्याख्या (Diagram Explanation): यह चित्र मांग के विस्तार को दर्शाता है। Y-अक्ष पर कीमत और X-अक्ष पर मांगी गई मात्रा है। जब कीमत P से P1 तक घटती है, तो मांगी गई मात्रा Q से Q1 तक बढ़ जाती है, जो मांग वक्र DD पर 'a' से 'b' तक नीचे की ओर गति को दर्शाता है।
1) Diagram A represents ............ in demand
Answer:Expansion or Extension.
2) In diagram A movement of demand curve is in ...................... direction
Answer:Downward.
In simple words: Diagram A shows an expansion of demand, which is a downward movement along the demand curve, indicating that a fall in price leads to an increase in the quantity demanded.

🎯 Exam Tip: When analyzing diagrams showing movement along a demand curve, clearly state whether it's an expansion (due to price fall) or contraction (due to price rise).

 

B)
ℹ️ चित्र व्याख्या (Diagram Explanation): यह चित्र मांग के संकुचन को दर्शाता है। Y-अक्ष पर कीमत और X-अक्ष पर मांगी गई मात्रा है। जब कीमत P से P1 तक बढ़ती है, तो मांगी गई मात्रा Q से Q1 तक घट जाती है, जो मांग वक्र DD पर 'b' से 'a' तक ऊपर की ओर गति को दर्शाता है।
1) Diagram B represents ............ in demand
Answer:Constraction.
2) In diagram B movement of demand curve is in ...................... direction
Answer:Upward.
In simple words: Diagram B illustrates a contraction of demand, represented by an upward movement along the demand curve, where an increase in price results in a decrease in the quantity demanded.

🎯 Exam Tip: For diagrams, remember that a movement *along* the curve is always due to a change in the good's *own price*, leading to either expansion or contraction.

 

6. Answer In Detail :

Question 1.State and explain the law of demand with exceptions.
Answer:(A) Introduction : The law of demand is one of the important law of consumption which explain the functional relationship between price and quantity demanded of a commodity. Prof. Alfred Marshall in his book 'Principle of Economics' which was published in 1890, has explained the consumer's behaviour as follows:
(B) Statement of the Law : According to Prof. Alfred Marshall, "Other things being equal, higher the price of a commodity, smaller is the quantity demanded and lower the price of a commodity, larger is the quantity demanded.
In other words, other things remaining constant, demand varies inversely with price. Marshall's law of demand describes the functional relationship between demand and price. It can be presented as:
\(D_x = f(P_x)\)
where D = Demand for Commodity
x = Commodity
f = function
Px = Price of a commodity
(C) Assumption :

• Prices of Substitute goods remain constant : The price of substitute goods should remain unchanged, as change in the price will affect the demand for the commodity.
• Prices of Complementary goods s remains constant : A change in the price of one good will affect the demand for other, thus the prices of complementary goods should remain unchanged.
• No Expectation about future changes in prices: The consumers do not expect any significance rise or fall in the future prices.
• No change in Taxation Policy : The level of direct and indirect tax imposed by the government on the income and goods should remain constant.
• Constant Level of Income : Consumer's income must remain unchanged because if income increases, consumer may buy more even at a higher price not following the law of demand.
• No Change in Tastes, Habits, Preference, Fashions, etc. : If the taste changes then the consumers preference will also change which will affect the demand. When commodities are out of fashion, then demand will be low even at a lower price.

(D) Explanation of the law of Demand : The law of demand is explained with the help of the following demand schedule and diagram: Demand Schedule

Price of Commodity 'X' (in Rs.)	Quantity Demanded of Commodity 'X' (in kgs)
50	1
40	2
30	3
20	4
10	5

From the above demand schedule we observe that at higher price of Rs. 50 per kg, quantity demanded is 1 kg. When price fall from Rs. 50 to Rs. 40, quantity demanded rises from 1 kg to 2 kg. Similarly, at price Rs. 30 quantity demanded is 3kg and when price falls from Rs. 20 to Rs. 10 quantity demanded rises from 4 kg to 5 kg. This shows an inverse relationship between price and demand.
ℹ️ चित्र व्याख्या (Diagram Explanation): यह चित्र एक सामान्य मांग वक्र (DD) को दर्शाता है, जिसमें Y-अक्ष पर कीमत और X-अक्ष पर मांगी गई मात्रा है। वक्र बाएं से दाएं नीचे की ओर ढलान वाला है, जो कीमत और मांगी गई मात्रा के बीच के विपरीत संबंध को स्पष्ट करता है, जैसा कि मांग अनुसूची में दिखाया गया है।
In the above diagram X-axis represent quantity demanded and Y-axis represent the price of the commodity. The demand curve DD slopes downwards from left to right showing an inverse relationship between price and demand. It has a negative slope.
(E) Exceptions to the Law of Demand : No, I do not agree with this statement. There are some important cases in which the demand for the commodity is greater when price rises and smaller when price falls. Such cases are called exceptions to the law of Demand. In such case, demand curve slopes upwards from left to right and it has a positive slope.

• Prestige Goods : Rich people buy more expensive goods like gold, diamonds, etc., even when there prices are high to maintain their status.
• Giffen Paradox : Demand for low quality goods and inferior goods decrease even if there prices falls. According to Sir Robert Giffen when price of bread declined, people did not buy more because of increase in their real income and they prefer to buy superior goods like meat.
• Speculation : People are tend to buy more commodities if they expect prices to rise further. E.g. prices of oil, sugar, etc., are expected to rise before Diwali, so people buy more of these commodities even at higher price.
• Habitual goods : Due to habit of consumption, certain goods like tea is purchased in required quantities even at higher price.
• Ignorance : Sometimes people completely ignore the price of commodity and buy more of that commodity ignoring higher price.
• Price Illusion: Consumer feels that good at higher price are of better quality, therefore demand for such goods are higher even at rise in their prices.

In simple words: The Law of Demand states that, generally, as price increases, demand decreases, and vice-versa, assuming other factors are constant. However, there are exceptions like prestige goods, Giffen goods, speculation, and habitual goods where this inverse relationship may not hold true.

🎯 Exam Tip: For comprehensive answers on the Law of Demand, ensure you clearly state the law, list its assumptions (ceteris paribus), explain it with a schedule and diagram, and thoroughly detail all major exceptions.

 

Question 2.Explain in detail the determinants of demand.
Answer:Meaning of Demand : Demand refers to a desire or want for goods. Desire is the willingness to have some commodity which is backed by willingness and ability to pay. Definition: According to Benham, “The demand for anything at a given price is the amount of it, which will be bought per unit of time at that price. Features of Demand :
1. Demand is a relative concept.
2. Demand is essentially expressed with reference to time and price. Determinants of Demand :
1. Price of Complementary Goods : Demand changes with changes in price of complementary goods like car and petrol, etc.
2. Advertisement : Effective advertisement and sales promotion will lead to greater demand of product. E.g. cosmetics, toothbrush, etc.
3. Price: Demand for a commodity is mainly influenced by its price. Normally at a higher price the demand is less and at a lower price it is more. Thus, demand varies inversely with price of a commodity.
4. Taste, Habits and Fashions : Habits influence market demand. If people habituated to the consumption of certain goods they will not give up such habits easily. E.g. demand for liquor, cigarettes, etc. Sometimes fashion change attitude and preference of people which in turn changes market demand.
5. Income: Income determines the purchasing power. Rise in income will lead to a rise in demand of a commodity and fall in income will lead to a fall in demand of a commodity.
6. Other Factors : (a) Climatic condition, (b) Changes in technology, (c) Government policy, (d) Customs and traditions, etc.
7. Nature of Product: Under necessary and unavailable circumstances the demand of a commodity will continue to be same irrespective of the corresponding price. E.g. medicine to control blood-pressure.
8. Level of Taxation : There would be increase in price of goods and services due to high rates of taxes which results in a decrease in demand and vice-versa.
9. Expectation about the Future Prices : If the consumer expect a rise in price in the near future they will demand more at present price. Similarly, when they expect price to fall, then they will buy less at present prices.
10. Price of Substitute Goods : Demand for cheaper substitute goods will rise when there is fall in price of such goods. E.g. when sugar price rises, then the demand for jaggery will rise.
11. Size of Population: Demand for commodity depends upon size and composition of population like age structure, gender ratio which influence demand for certain goods. E.g. larger the child population, more will be the demand for toys, chocolates, etc.
In simple words: Determinants of demand are the various factors, other than the commodity's own price, that influence how much consumers are willing and able to buy, such as income, tastes, prices of related goods, population, and expectations about future prices.

🎯 Exam Tip: When listing determinants, briefly explain how each factor influences demand (e.g., higher income increases demand for normal goods, while a change in fashion can increase or decrease demand).

 

Intext Questions

Activity: (Textbook Page No. 17)

Question 1.Identify the concepts :
(i) A poor person wants to have a car.
Answer:Desire: because he does not have ability and capacity to pay the price for a car.
In simple words: This is simply a desire because the person lacks the financial ability to purchase a car, preventing it from being economic demand.

🎯 Exam Tip: Economic demand requires both willingness and the financial capacity to purchase, distinguishing it from a mere wish or desire.

 

Question 2.(ii) A rich person bought a car.
Answer:Demand : because a rich person has a desire as well as capacity to pay a car.
In simple words: This constitutes demand because the rich person not only desired the car but also possessed the financial ability and willingness to complete the purchase.

🎯 Exam Tip: The fulfillment of desire through purchase, backed by purchasing power, is the core criterion for identifying economic demand.

 

Activity: (Textbook Page No. 19)

Question 1.Prepare a monthly demand schedule of your family for various commodities. For example, vegetables, fruits, medicines, etc.
Answer:[Students should do this activity by themselves]
In simple words: This activity requires you to create a personalized table showing how the quantity of various household items your family demands might change with different prices, reflecting your actual consumption patterns.

🎯 Exam Tip: While an activity, this helps internalize the concept of a demand schedule. Focus on illustrating how quantities demanded change with price for different goods your family consumes.

 

Activity: (Textbook Page No. 19)

Question 1.Complete the following hypothetical demand schedule.

Price of Commodity 'x' (Rs.)	Quantity Demanded in kgs
350	3
300
250	10
200
150
100	30

Answer:

Price of Commodity 'x' (Rs.)	Quantity Demanded in kgs
350	3
300	7
250	10
200	17
150	25
100	30

In simple words: The completed demand schedule demonstrates the inverse relationship between price and quantity demanded; as the price falls, the quantity demanded increases, following a logical progression.

🎯 Exam Tip: When completing a demand schedule, ensure the quantities demanded consistently increase as the price decreases, reflecting the law of demand. Maintain a reasonable pattern for the missing values.

 

Activity: (Textbook Page No. 20)

Complete The Table.

 

Question. Complete the following table:

Price of Commodity 'x' (Rs.)	Quantity Demanded in kgs
350	3
300
250	10
200
150
100	30

Answer:

Price of Commodity 'x' (Rs.)	Quantity Demanded in kgs
350	3
300	7
250	10
200	17
150	25
100	30

In simple words: This activity involves completing a demand schedule by filling in the missing quantities demanded for different prices, demonstrating the inverse relationship between price and quantity demanded.

🎯 Exam Tip: Always remember that a demand schedule illustrates how quantity demanded changes as price changes, typically showing an inverse relationship (as price falls, demand rises). Make sure your completed schedule reflects this principle.

Complete The Table.

 

Question. Complete the table.

Types of Demand	Examples
Direct demand
	Workers in cotton textile industry
Joint demand	For preparing Coffee-Coffee Powder
	CNG and petrol, pen and pencil
	Tea-Curd-Milk-Direct consumption-Sweets

Answer:

Types of Demand	Examples
Direct demand	Soap, Comb
Indirect Demand	Workers in cotton textile industry
Joint demand	For preparing Coffee-Coffee Powder Milk-Sugar-Utensil
Competitive Demand	CNG and petrol, pen and pencil
Composite Demand	Tea-Curd-Milk-Direct consumption-Sweets

In simple words: This activity requires matching different types of demand, such as direct, indirect, joint, competitive, and composite demand, with appropriate real-world examples to clarify their economic meanings.

🎯 Exam Tip: When categorizing types of demand, focus on the primary purpose or relationship. For instance, direct demand is for final consumption, while indirect demand is for factors of production.

Activity: (Textbook Page no. 22)

 

Question. Draw a demand curve from the following demand schedule :

Price of Apple (Rs.) per kg	Quantity Demanded (in kgs)
40	5
50	4
60	3
70	2
80	1

Answer:
ℹ️ चित्र व्याख्या (Diagram Explanation): यह आरेख एक मांग वक्र (Demand Curve) को दर्शाता है। क्षैतिज अक्ष (X-axis) पर 'Quantity Demanded' (मांगी गई मात्रा) किलोग्राम में और ऊर्ध्वाधर अक्ष (Y-axis) पर 'Price' (कीमत) प्रति किलोग्राम रुपये में दर्शाई गई है। यह वक्र (DD) ऊपर से नीचे की ओर ढलान वाला है, जो कीमत और मांगी गई मात्रा के बीच के विपरीत संबंध को दर्शाता है, यानी जब कीमत बढ़ती है तो मांगी गई मात्रा घटती है और इसके विपरीत।
In simple words: The demand curve illustrates the inverse relationship between the price of apples and the quantity demanded; as the price increases, consumers demand fewer apples, and vice versa.

🎯 Exam Tip: When drawing a demand curve, always label your axes clearly (Price on Y, Quantity on X) and ensure the curve slopes downwards from left to right to accurately represent the law of demand.

Activity: (Textbook Page no. 23)

 

Question. Find out : Examples of the given exceptions to the law of demand.
(1) Prestigious Goods
Answer: Car, Gold, Diamond, etc.
(2) Habitual Goods
Answer: Cigarette, Tea, Drugs, Chocolates, etc.
(3) Branded Goods
Answer: Godrej Lockers, Levis Jeans, Sony T.V, etc.
In simple words: This activity identifies specific products that do not always follow the general law of demand, meaning their demand might increase even when prices rise due to factors like status, addiction, or brand loyalty.

🎯 Exam Tip: Be ready to explain why these goods are exceptions – it's usually due to psychological, social, or habitual factors overriding the simple price-quantity relationship.

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