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Explain the derivation of demand curve …

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Explain the derivation of demand curve in the case of a single commodity
  • 4 answers

Mohd Shariq Ms Raza 6 years, 11 months ago

Hmm full explanation karna h board me ?

Cbse Student 6 years, 11 months ago

Jisko jse ans. Pta hai wase tho btaygaaa naa..ok

Mohd Shariq Ms Raza 6 years, 11 months ago

anamika kitna explain kiya h yr short trick me bta deti

Cbse Student 6 years, 11 months ago

n the case of a single commodity, the derivation of the demand curve is done with the help of the concept of diminishing marginal utility. Marginal utility is the satisfaction a person receives from consuming one unit of commodity. Similarly diminishing marginal utility means that the first unit of consumption of a good yields more utility than the second and as more units are purchased the less utility is derived from them. As long as the marginal utility of a commodity is greater than its price (MUx > Px), the consumer demand will be high till its marginal utility is equal to its price MUx = Px As more units of commodity X are purchased, its marginal utility diminishes. So at diminishing price, the quantity demanded of good X increases. The rational supports the notion of down slopping demand curve that when price falls, other things remaining the same, the quantity demanded of a good increases and vice verse.
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