Title Competitive or Cross Demand.pdf ✅

Written/Composed by:- Adnan Maqbool , Contact # 0315-3130411 My Youtube Channel: Easy Conceptual Study Website: www.informationpk.com , E-mail: [email protected] Micro Economics I.Com/D.com/FA/FSc/BA/BSc/ B.com/ BS/BBA/MBA/M.Com/ACCA Visit: www.informationpk.com for Notes, Past papers, Home Tuition and more. Page | 1 Demand i . Deman d ref ers t o th e b eh avi o r o f con su m ers. ii. Deman d is th e q u an tity o f a co mm od it y actu ally b ou gh t “D eman d is th e am ou n t o f a p rod u ct b u yers ar e wi llin g an d ab le t o p u rch ase at a given p ric e o v er a p articu lar p eriod of tim e. ” So de ma n d ha s tw o co nditio ns: i . Desir e to p u rch as e ii. Pu rch asin g p o wer Th e d esi r e f or a co mmod it y i s n ot d e man d , fo r examp le, th e d esir e of a p oo r man to p u rch as e a car i s n ot d eman d b ecau se h e h as n o p o wer to p u rch as e it. D e m a n d = D e s i r e t o p u r c ha s e + A b i l i t y t o P u r c ha s e No te: - Deman d is alwa ys b as ed on wi llin gn ess an d ab ilit y to p a y f or a p r od u ct, n ot mer ely wan t o r n eed f or th e p rod u ct. www.informationpk.com
Written/Composed by:- Adnan Maqbool , Contact # 0315-3130411 My Youtube Channel: Easy Conceptual Study Website: www.informationpk.com , E-mail: [email protected] Micro Economics I.Com/D.com/FA/FSc/BA/BSc/ B.com/ BS/BBA/MBA/M.Com/ACCA Visit: www.informationpk.com for Notes, Past papers, Home Tuition and more. Page | 2 De ma n d is a rela tio nship betw een t w o eco no mic va ria bles: - i . Pric e o f a p articu lar g ood ii. Qu an tity of th e g ood , wh ich th e con su m er s ar e wi llin g t o b u y at th at p rice d u rin g a sp ecific tim e p eri od , all oth er th in gs b ein g eq u al. Def initio n: -  Wh en th e d eman d fo r a commod it y d ep en d s n ot on its p rice b u t on th e p rice o f oth er r elat ed comm od ities, it is called cr o ss d eman d . In th e cas e o f S ubs tit ute o r Co mpe titi ve g o od s, a ris e in th e p rice o f on e g o od A rais es th e d eman d fo r th e oth er g ood B, th e p rice o f B remain in g th e sam e. Con v ers ely a fa ll in th e p rice of A wh en th e d eman d fo r B fa lls. In ca se th e t wo g o od s ar e Co mple men ta ry o r J o intly d eman d ed , a ri se in th e p ri ce of on e go od A wi ll b rin g a fa ll in th e d eman d fo r go od B. Con v ers ely, a fall in th e p ric e of A wi ll rai se th e d eman d f or B.  Comp etitiv e d eman d is th e deman d fo r p rod u cts th at are c omp etin g f o r sa les. P eop le can su b stitu te on e comp etin g p r od u ct for an oth er. If th e d eman d fo r on e www.informationpk.com
Written/Composed by:- Adnan Maqbool , Contact # 0315-3130411 My Youtube Channel: Easy Conceptual Study Website: www.informationpk.com , E-mail: [email protected] Micro Economics I.Com/D.com/FA/FSc/BA/BSc/ B.com/ BS/BBA/MBA/M.Com/ACCA Visit: www.informationpk.com for Notes, Past papers, Home Tuition and more. Page | 3 p rod u ct in creas es, th e d eman d fo r its comp etito r wi ll d ecr eas e. Or  Commod iti es a r e su b stitu tes if on e can b e u s ed in p lace of th e oth er. S u b stitu te g o od s s er v e th e sam e p u rp ose an d th er ef o r e comp et e f o r th e c on su m er s’ in come. Fo r exa mples :-  Tea an d c of f ee ar e su b stitu tes f or on e an oth er. If th e p rice of c of f ee ris es, th e co n su mer will b e in d u ced to b u y m or e of t ea an d , h en c e, th e d eman d o f t ea wi ll in creas e.  Wh eat an d rice are su b stitu tes fo r on e an oth er. If th e p rice o f wh eat ri ses, th e con s u mer wi ll b e in d u ced to b u y m or e of ric e an d , h en ce, th e d eman d o f ric e wi ll in creas e.  Cok e an d P ep si ar e comp et in g s oft d rin k s. If th e p rice o f P ep si d rop s b elo w t h at of Cok e, con su m er d eman d f or P ep si wi ll in cr ea se wh ile th e d eman d f o r Cok e d ecr eas es.  Pen an d In k ar e J oin t Pr od u ct. If th e p rice o f P en in creas e th en con su m er d eman d f or In k wi ll d ecr eas e.  Pet ro l an d Car are J oin t Pr od u ct. If th e p rice o f Pet ro l in cr eas e th en con su m er d eman d for Car wi ll d ecr eas e. www.informationpk.com