2 questions on Law of Demand

2007-02-23 8:51 pm
- Does the Law of Demand holds for a perfectly inelastic demand ? and Why ?

- "If A's quantity demanded at each price spreads over a shorter period than that of B's, A's demand is greater than B's" Would you please explain this sentence in further details ?

Thank you for answering !!

回答 (2)

2007-03-03 7:30 am
✔ 最佳答案
-No. The law of demand states that an increase in price of a good will result in a decrease in its quantity demanded, ceteris paribus (holding all other factors constant) In the perfectly inelastic demand situation, there's already a change of factor, thus the law of demand failed to holds for a perfectly inelastic demand.

-Basically, demand is larger if the same quantities are spread over a shorter period. As A's demand spread over a shorter time than B's one, A's demand is said to be greater than B's one.
2007-03-03 3:59 am
1st question

no because as the price increase the quantity demanded no longer decrease , vice versa


2nd question

A's schedule for a week
price --- quantity demanded
$1 ---30
$2 ---25
$3 ---20
$4 ---15
$5 ---10

B's schedule for 2 week
price --- quantity demanded
$1 ---30
$2 ---25
$3 ---20
$4 ---15
$5 ---10

when A and B's schedule is restrained to spread over the same period of time
their schedule become:

A's schedule for 2 week
price --- quantity demanded
$1 ---60
$2 ---50
$3 ---40
$4 ---30
$5 ---20

B's schedule for 2 week
price --- quantity demanded
$1 ---30
$2 ---25
$3 ---20
$4 ---15
$5 ---10

to every price, the quantity demanded of A becomes larger than B's
the demand for a certain good of A is larger than that of B
參考: myself


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