Law of demand Class 11 Notes

Law of demand class 11 notes are presented in this post for easy access to the students. These notes provide various wholesome definitions of utility and, accordingly, define what utility stands for. These notes become beneficial for last-minute preparation and revision.

• Law of demand
• Assumptions
• Significant Facts about the Law of Demand
• Explanations behind the Law of Demand
• Exceptions of the law of demand

 LAW OF DEMAND class 11 

The Law of demand expresses the inverse relationship between cost and amount demanded, keeping different variables steady (ceteris paribus). This law is also called the First Law of Purchase.

 Assumptions

This expression is utilized to cover the accompanying assumptions on which the law is based:

1. Costs of substitute goods don’t change.

2 Prices of complementary goods stay consistent.

3 Income of the purchaser continues as before.

4. There is no assumption for a change in cost in near future.

5, Tastes and preferences of the shopper continue as before. 

Significant Facts about the Law of Demand

1 Inverse Relationship- It expresses the opposite connection between cost and amount demanded.

2. Subjective, not Quantitative- It offers a subjective expression in particular.
3. No Proportional Relationship- It doesn’t build up any corresponding connection between the change in cost and the resultant change sought after.
4. Uneven: The law of demand is uneven as it just clarifies the impact of progress in cost on the amount requested. It doesn’t state anything about the impact of progress in the amount requested on the cost of the ware.

Explanations behind the Law of Demand class 11

The different explanations behind the activity of the Law of Demand are:

• Law of Diminishing Marginal Utility
• Substitution effect
• Income effect
• Additional costumes
• Different uses

Exceptions of the law of demand

1. Giffen Goods; These are unique sorts of second-rate products on which the purchaser spends an enormous amount of his pay and their demand ascends with an expansion in cost and request falls with a declining cost.
2. Superficial point of demand Goods or Goods of Ostentation: The exemption identifies with specific glory products which are utilized as superficial points of demand.
3. Dread of Shortage: If the customers expect a lack or shortage of a specific good soon, then, at that point, they would begin purchasing increasingly more of that product in the current time frame regardless of whether their costs are rising.
4. Obliviousness: Consumers might purchase even a product at a greater cost when they are uninformed about the overarching costs of the item on the lookout.
5. Fashionable goods: Goods identified with style don’t observe the law of demand and their demand increments even with an increase in their costs.
6. Change in Weather. With the change in season/climate, demand for specific items likewise changes, regardless of any adjustment of their costs.

Law of demand class 11 notes are helpful for students as they are short and easy to understand. They keep you alert, attentive and accountable as you go through them, and the notes become a record of what was said in lectures or discussions that can be used later for studying and review.