is the measurement or degree or responsiveness of demand to changes in price. By this, we mean how consumers react to changes in price. Price elasticity coefficient (Ed) is measured as the percentage in quantity demanded divided by the percentage change in price. Example: If there is 20% increase in price, which results to a1,out …
See the types of demand: JOINT OR COMPLEMENTARY DEMAND This is the type of demand where two commodities are jointly demanded E.g. car and petrol, Tea and sugar. The demand for one necessitates the demand for the other. DERIVED DEMAND This occurs when the demand for one commodity is wanted as a result of another …
From the definition of demand, the normal demand curve slopes downward from left to right i.e. obeying the law of demand. But exceptional demand curve takes the opposite direction. It is a situation where less quantity of goods will be demanded even when there is a fall in price and, more quantity of goods demanded …
By demand, we mean the amount or quantity of commodity service that consumers are willing and ready to purchase at a given price and at a particular period of time. It should be borne in mind that demand differs from “want” in that the former is usually backed up by the ability and readiness to …
Utility: is simply defined as the total amount of satisfaction one derives from the consumption of a commodity at a particular time. For example, the utility of smoking Indian hemp and drinking of beer is the satisfaction one (i.e. the person) derives from consuming such a commodity at that particular time. Note that the total utility …
This Is the degree to which a group of data varies from their average values. TYPES OF MEASURES OF DISPERSION: THE RANGE Is the difference between the highest and lowest number In a given distribution. For Instance, given the following data: 5,7,4,9,10,6,8 find the range of the above distribution. Now, to get the range, we …