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Chapter 3 of 11
Revision Notes

Demand

Gujarat Board · Class 11 · Economics

Quick revision notes for Demand — Gujarat Board Class 11 Economics. Key concepts, formulas, and definitions for last-minute revision.

44 questions25 flashcards5 concepts

Key Topics to Revise

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1. Meaning and Definition of Demand

  • Demand is the quantity of a commodity which a buyer desires, is able and willing to buy at a given price at a given point of time
  • Five essential factors define demand: desire, willingness to buy, ability to buy, particular price, and particular point of time
  • Demand is different from want - want becomes demand only when backed by purchasing power and willingness to pay
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2. Factors Affecting Demand (Determinants of Demand)

  • Price of the commodity - most important determinant with inverse relationship
  • Tastes and preferences - changes with age, fashion, culture (e.g., preference for organic food)
  • Income of consumer - direct relationship for normal goods, inverse for inferior goods
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3. Law of Demand

  • States inverse relationship between price and quantity demanded, keeping other factors constant
  • Presented by Prof. Alfred Marshall
  • Statement: 'When other factors remain unchanged, if price falls, demand expands; if price rises, demand contracts'
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4. Exceptions to Law of Demand

  • Prestigious goods (Veblen goods) - higher price increases demand as status symbol
  • Extremely low-priced goods - price changes don't affect demand significantly
  • Giffen goods - inferior goods where demand falls when price falls

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Full Notes

Key Concepts

Demand is the quantity ofFactors affecting demand includeStates that when other factors remainIncome EffectInclude

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Frequently Asked Questions

What are the important topics in Demand for Gujarat Board Class 11 Economics?

Demand covers several key topics that are frequently asked in Gujarat Board Class 11 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.

Start by understanding all key concepts. Practise previous year questions from this chapter. Revise formulas and definitions regularly. Use flashcards for quick revision before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.