Microeconomics

Basic Concept of demand

Assignment # 1
Name: _Tabassum manzoor__________________ enrollment number: 02-111211-
152 _______________
Section: ____BBA 1D__________ Last date: March 30, 2021

Q1.How do you define demand in economics? Is desire the same thing as demand?
Ans. Demand states that : other things remaining the same, the higher the price of a good ,the smaller is

the quantity demanded and the lower the price of a good, the greater is the quantity demanded. Demand

in economics is the consumers desires and ability to purchase goods or service. without demand no

business would ever bother producing any thing.

Q2.What are complementary goods? Give some example of complementary goods.

Ans. In economics, a complementary good is a product or service that adds value to another. In another

words they are two goods that the consumer uses together.______________________________________________

Examples: DVD and a DVD player. Tennis ball and tennis racket, mobile phone and sim cards,

petroleum and cars.

Q3.What are substitute goods? Give some example of substitute goods

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Q4.What are the factors which affect the demand?

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Q5.If income increase, what happens to the quantity demanded of a good?
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Q6. Suppose that two products are substitute of each other. If the price of a product decreases
what happens to the quantity demanded of other good?
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Q7. Suppose that two products are Complement of each other. If the price of a product increases
what happens to the quantity demanded of other product?
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Q8.What is an inferior good? What is the relationship between the demand of inferior good and
income?
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Q9.If quantity of a good decrease as income increases, what type of good is it?
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Q10.What are the factors which shift demand curve?

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Q11.What is the difference between individual demand curve and market demand curve?

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Q12.If demand for good increases as price of another good increase, how are the two goods
related?
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Q13. If demand of a good decreases as price of another good increases, how are the two goods
related?
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Q14. When would a demand curve shift downwards to the right?

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Q15.When would a demand curve shift downwards to the left

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Q16. Differentiate between movement along a demand curve and movement of a demand curve.
and draw the graph of both.
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Q17.Differentiate between fall in demand and contraction of demand with the help of graph.

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Q18.Differentiate between rise in demand and expansion of demand with help of graph.
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