Friday, 3 July 2015

GATEWAY TO CGL MAINS: ECONOMICS NOTES 2

DEMAND
Demand:- Quantity of the commodity that a consumer is able and willing to purchase in a given period and at a given price.

Demand Schedule:- It is a tabular representation which shows the relationship between price of the commodity and quantity purchased.
Demand Curve:- It is a graphical representation of demand schedule.
Individual Demand:- Demand by an individual consumer.

Factors Affecting Individual Demand For a Commodity/Determinants of Demand:-
1. Price of the commodity itself  
2. Income of the consumer
3. Price of related goods 
4. Taste and Preference 
5. Expectations of future price change

Law of Demand:- Other things remains constant, demand of a good falls with rise in price and vice versa .

Changes in Demand:-
They are of two types:
1) Change in Quantity Demanded (Movement along the same demand curve)
2) Change in Demand (Shifts in demand)

1) Change in Quantity Demanded: -
Demand changes due to change in price of the commodity alone, other factors remain constant; are of two types;
A) Expansion of demand : More demand at a lower price
B) Contraction of demand : Less demand at a higher price

2) Change in demand:-
Demand changes due to change in factors other than price of the commodity, are of two types:
A) Increase in demand:- more demand due to change in other factors, price remaining constant.
B) Decrease in demand:- less demand due to change in other factors, price remaining constant.

Causes of Increase in Demand:-
1. Increase in Income.
2. Increase/ favorable change in taste and preference.
3. Rise in price of substitute good.
4. Fall in price of complementary good.
Note: Increase in income causes increase in demand for normal good

Causes of Decrease in Demand:
1. Decrease in Income.
2. Unfavorable/Decrease in taste and preference
3. Decrease in price of substitute good.
4. Rise in price of complementary good.
Note: Decrease in income causes Decrease in demand for normal good

Type of Goods

Substitute Goods:- Increase in the price of one good causes increase in demand for other good. E.g., tea and Coffee
Complementary Goods:- Increase in the price of one good causes decrease in demand for other good. E.g:- Petrol and Car
Normal Good:- Goods which are having positive relation with income. It means when income rises, demand for normal goods also rises.
Inferior Goods:- Goods which are having negative relation with income. It means less demand at higher income and vice versa.
Normal goods - the quantity demanded of such commodities increases as the consumer’s income increases and decreases as the consumer’s income decreases. Such goods are called normal goods.
Giffen goods - a Giffen good is an inferior good which people consume more of as price rises, violating the law of demand.. In the Giffen good situation, cheaper close substitutes are not available. Because of the lack of substitutes, the income effect dominates, leading people to buy more of the good, even as its price rises.
Veblen good : Often confused with Giffen goods, Veblen goods are goods for which increased prices will increase quantity demanded. However, this is not because the consumers are forced into buying more of the good due to budgetary constraints (as in Giffen goods). Rather, Veblen goods are high-status goods such as expensive wines, automobiles, watches, or perfumes. The utility of such goods is associated with their ability to denote status. Decreasing their price decreases the quantity demanded because their status- denoting utility becomes compromised.

32 comments:

  1. PRINCE SINGH " Born For RBI"3 July 2015 at 18:46

    gud work..


    i hope this yr i will give good result....

    ReplyDelete
  2. Deep @Jai Mata Di@3 July 2015 at 20:15

    Hats off to SA for providing these material and starting the series Gateway to SSC CGL Mains :)
    It would prove to be another successful series same as Gateway to SBI Mains series started by BA earlier :)
    I hope SA will do its best to provide some good material and nice quizzes for SSC CGL :)
    Thanks.....
    Jai Mata Di :)

    ReplyDelete
  3. articles 267 related with..............

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  4. articles 243 related with.........

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  5. 1935 Act ...how many clause and section are there.......

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  6. first civil civil service exam was held in where and when.....

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  7. who is the father of civil service.........

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  8. Who say jai jawan and jai kisan.......

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  9. first ics of india........

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  10. first IAS of india.........

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  11. Drafting committee produce his report on.........

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  12. " The Prince of Clouds "3 July 2015 at 20:30

    Guyz can you plz tell me is there any difference in the ways the syllogism question solved in banking and FCI exams....because in SSC exams there is a difference in the ways the syllogism question solved in BANKING and SSC....so by which way should i go for..

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  13. How many state bicameral system state in India andwhat are they.......

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  14. Who is the Father of indian Econamic..........

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  15. Who was the president of Constitutions Executive council ........

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  16. Lal bhadur shastri

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  17. Sorry To Say I was unable to Prepare Material For Today's Topic because of Electricity problem. So Today there will be no Class.

    But I have decided to Solve Problems Today. So if you have doubt in Any Topic then you are free to ask. I will try my best to clear your doubt. Thanks.

    ReplyDelete
  18. ok no problem dea:))
    let me find out if i had got any question
    wl ask u..

    ReplyDelete
  19. dost shall i ask problems regarding any of the chapters
    or jo srf apnea pdhaya?

    ReplyDelete
  20. how many words can be formed by using B three times,D two times,C one time?

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  21. The Question is How many words can be fromed from BBBDDC
    See there are total 6 words here.
    In which there are 3 B's, 2 D's And 1C.
    So first we will find the probability that how many words can be fromed by 6 letters and that will be = 6!
    and now we will divide it by the factorial of no. of times a word is repeated.
    So final answer will be = 6!/(3!*2!0 = 720/(6*2) = 60
    So answer is 60.

    ReplyDelete
  22. okay no prob bro...cool _/\_

    ReplyDelete
  23. haan apply kiya lekin focus is on BAnk exams....

    ReplyDelete
  24. Mujhe kuch puchna h sir aap se...

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  25. @Insomniac bhai jara english section k bare me kuch tips dho...

    ReplyDelete
  26. Huttt...chal rehne de.

    ReplyDelete
  27. how mera 7.5 aa raha hai

    ReplyDelete