Page 31 - VIRANSH COACHING CLASSES

Therefore, it is assumed that there is no In fig. 3.5, X axis represents the demand for
change in the policy of taxation declared the commodity and Y axis represents the price
by Government. of commodity x. DD is the demand curve which
The law of demand is explained with the slopes downward from left to right due to an
help of the following demand schedule and inverse relationship between price and quantity
diagram. demanded.

Demand schedule : Try this :
Table. 3.3
Draw a demand curve from the following
Price of Quantity demanded of
commodity ‘x’ (`) commodity ‘x’ (in kgs.) demand schedule :
50 1 Price of Apple (`) Quantity demanded
per kg (in kgs.)
40 2
40 5
30 3
50 4
20 4
60 3
10 5
70 2
As shown in Table 3.3 when price of 80 1
commodity ‘x’ is ` 50, quantity demanded is 1
kg. When price falls from ` 50 to ` 40, quantity Exceptions to the Law of Demand :
demanded rises from 1 kg to 2 kgs. Similarly, at There are certain exceptions to the law
price ` 30, quantity demanded is 3 kgs and when of demand. It means that under exceptional
price falls from ` 20 to ` 10, quantity demanded circumstances, consumer buys more when the
rises from 4 kg sto 5 kgs
price of commodity rises and buys less when
Thus, as the price of a commodity falls, price of commodity falls. In such cases, demand
quantity demanded rises and when price of curve slopes upwards from left to right. i.e. the
commodity rises, quantity demanded falls. This demand curve has a positive slope as shown in
shows an inverse relationship between price and fig. 3.6.
quantity demanded. Exceptional Demand Curve
Demand Curve
Y DD = Exceptional Demand curve
Y
D
D
50
Price in ` 40 Price in `

30

20

10 D D

0 X
0 1 2 3 4 5 X
Quantity Demanded in kgs Quantity Demanded in kgs
Fig. 3.5 Fig. 3.6

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