Determine the concepts of demand, Managerial Economics

Assignment Help:

Determine the concepts of demand

Demand always mentions to demand at price. The term 'demand' has no meaning unless it is related to price. For example, the statement, 'the weekly demand for potatoes in city X is 10,000 kilograms' has no meaning unless we specify the price at which this quantity is demanded.
Demand always suggests demand per unit of time. So it is vital to specify the period for which the commodity is demanded. For example, the statement that demand for potatoes in city X at 8$ per kilogram is 10,000 kilograms again has no meaning unless we state the period for which this quantity is being demanded. A complete statement would thus be as follows: 'the weekly demand for potatoes in city X at 8$ per kilogram is 10,000 kilograms'. It is essential to specify the price and the period since demand for a commodity would be different at different prices of that commodity and for different periods of time. So we can define demand as follows: "The demand for a commodity at a given price is the amount of it which would be bought per unit of time at that price".

Related Discussions:- Determine the concepts of demand

Break-even quantity., Bikes-for-two, Inc., produces tandem bicycles. Its co...

Bikes-for-two, Inc., produces tandem bicycles. Its costs have been analyzed as follows: VARIABLE COST Materials $30/unit Manufacturing labor 3 hours/unit ($8/hour) Assembly labor 1

Identity economics, McDonalds has been operating in many Asian countries su...

McDonalds has been operating in many Asian countries such as China, Singapore and Japan. However, McDonalds has yet to open its ?rst restaurant in Vietnam, a country with over 80 m

Currency swaps, Currency Swaps If the currency of one country is not c...

Currency Swaps If the currency of one country is not convertible, the central banks o f the two countries can exchange their currencies, and the country with the non-convertib

Definition of monopoly, 1. Prof. Thomas "Generally the term Monopoly is use...

1. Prof. Thomas "Generally the term Monopoly is used to cover any effective price control, whether of demand or supply of services or goods; hardly it is used to mean a combination

What is the meaning of demand, What is the meaning of demand In economi...

What is the meaning of demand In economics, demand has a specific meaning distinct from its ordinary usage. In common language we treat 'desire' and 'demand' as synonymously. T

Derive the inter-temporal budget constraint, Problem: (a) (i) Assuming...

Problem: (a) (i) Assuming that a household uses a subjective discount rate of 10%, calculate the amount that she must spend on consumption per annum during her years of existe

Applications of managerial theories and concepts in decision, Discuss the a...

Discuss the applications of Managerial economics concepts or theories in managerial decision making question..

Stable and unstable equilibrium, Stable and Unstable Equilibrium An eq...

Stable and Unstable Equilibrium An equilibrium is said to be stable equilibrium when economic forces tend to push the market towards it. In other words, any divergence from t

Transfer payments, Transfer Payments Are any payments made to househol...

Transfer Payments Are any payments made to households by the government that are not made in return for the services of factors of production i.e. there is no Quid pro Quo. S

Transitional unemployment, Transitional unemployment Transitional unem...

Transitional unemployment Transitional unemployment is that situation which prevails due to some temporary reasons. The main reason for this type of unemployment are:

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages