GENERAL KNOWLEDGE

Detailed explanation-1: -This cars are very expensive, so they take a large proportion in consumer’s income. Also, sports cars can be considered as luxuries. So if the price of sports cars goes up, the quantity demanded of sports cars will go down by more. Elasticity of supply for sports cars can be considered as inelastic.

Detailed explanation-2: -Demand represents the buyers in a market. Demand is a description of all quantities of a good or service that a buyer would be willing to purchase at all prices. According to the law of demand, this relationship is always negative: the response to an increase in price is a decrease in the quantity demanded.

Detailed explanation-3: -For example, if a consumer is hungry and buys a slice of pizza, the first slice will have the greatest benefit or utility. With each additional slice, the consumer becomes more satisfied, and utility declines. In theory, the first slice might fetch a higher price from the consumer.

Detailed explanation-4: -Demand is the consumer’s desire to purchase a particular good or service. Market demand is the demand for a particular good in the market. Aggregate demand is the total demand for goods and services in the economy. Demand and supply match determines the price of the good or service. Understanding the concept of demand.