Demand Analysis

Step 1: Understanding the Concept:
The demand for a commodity refers to the quantity that consumers are willing and able to buy at various prices.
Various factors, collectively known as determinants of demand, influence this quantity.
Step 2: Detailed Explanation:
1. Price of the Commodity: This is the most important factor. According to the Law of Demand, there is an inverse relationship between price and quantity demanded. As price rises, demand falls, and vice-versa.
2. Income of the Consumer: For normal goods, demand increases as income increases. However, for inferior goods (like coarse grain), demand may decrease when income rises as consumers switch to superior quality items.
3. Price of Related Goods:
- Substitute Goods: If the price of tea increases, the demand for coffee (its substitute) may rise.
- Complementary Goods: If the price of petrol rises, the demand for cars (complementary good) may fall.
4. Tastes and Preferences: Demand is heavily influenced by consumer habits, fashion, and trends. Commodities that are in fashion see higher demand regardless of small price changes.
Step 3: Final Answer:
Demand is determined by price, consumer income, prices of substitutes/complements, and individual preferences.

Step 1: Understanding the Concept:
The "Law of Demand" describes the functional relationship between the price of a good and the quantity consumers are willing to buy.
Step 2: Detailed Explanation:
The Law of Demand states that, ceteris paribus (all other things being equal), as the price of a good increases, the quantity demanded decreases. Conversely, as the price decreases, the quantity demanded increases.
Since the two variables move in opposite directions, the relationship is termed inverse or negative.
Graphically, this results in a demand curve that slopes downwards from left to right.
Step 3: Final Answer:
The inverse relationship between price and quantity demanded is mathematically represented as a negative relation.

Step 1: Understanding the Concept:
Price Elasticity of Demand ( ) measures how much the quantity demanded changes when price changes.
Step 2: Detailed Explanation:
1. Inelastic Demand ( ): Demand is not very responsive to price.
2. Perfectly Inelastic Demand ( ): This is a extreme case where, no matter how much the price changes, the quantity demanded remains exactly the same.
The phrase "no change" in the question refers to the Quantity Demanded (simply called 'demand' here). Even if the price changes significantly, the demand remains constant.
Step 3: Final Answer:
In a perfectly inelastic scenario, there is zero change in the quantity demanded.