In economics , demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. In economics "demand" for a commodity is not the same thing as "desire" for it. It refers to both the desire to purchase and the ability to pay for a commodity.
181-477: Demand is always expressed in relation to a particular price and a particular time period since demand is a flow concept. Flow is any variable which is expressed per unit of time. Demand thus does not refer to a single isolated purchase, but a continuous flow of purchases. The factors that influence the decisions of household (individual consumers) to purchase a commodity are known as the determinants of demand. Some important determinants of demand are: The price of
362-619: A "Look East" policy that seeks to strengthen partnerships with the ASEAN nations, Japan , and South Korea that revolve around many issues, but especially those involving economic investment and regional security. China's nuclear test of 1964 , as well as its repeated threats to intervene in support of Pakistan in the 1965 war, convinced India to develop nuclear weapons. India conducted its first nuclear weapons test in 1974 and carried out additional underground testing in 1998. Despite criticism and military sanctions, India has signed neither
543-519: A 1988 coup d'état attempt in the Maldives. After the 1965 war with Pakistan, India began to pursue close military and economic ties with the Soviet Union ; by the late 1960s, the Soviet Union was its largest arms supplier. Aside from its ongoing special relationship with Russia , India has wide-ranging defence relations with Israel and France . In recent years, it has played key roles in
724-722: A multi-party system , India has six recognised national parties , including the Indian National Congress (INC) and the Bharatiya Janata Party (BJP), and more than 50 regional parties . The Congress is considered center in Indian political culture , and the BJP right-wing . For most of the period between 1950—when India first became a republic—and the late 1980s, the Congress held
905-417: A - P - P g where Q is the quantity of automobiles demanded, P is the price of automobiles and P g is the price of gasoline. The other main category of related goods are substitutes. Substitutes are goods that can be used in place of the primary good. The mathematical relationship between the price of the substitute and the demand for the good in question is positive. If the price of the substitute goes down
1086-485: A backward slope from the top right to down left. This curve is known as an exceptional demand curve. The goods which people need no matter how high the price is are basic or necessary goods. Medicines covered by insurance are a good example. An increase or decrease in the price of such a good does not affect its quantity demanded. Stock buyers acting in accord with the hot-hand fallacy will increase buying when stock prices are trending upward. Other rationales for buying
1267-452: A commodity causes households to expect the price of a commodity to increase further, they may start purchasing a greater amount of the commodity even at the presently increased price. Similarly, if the household expects the price of the commodity to decrease, it may postpone its purchases. Thus, some argue that the law of demand is violated in such cases. In this case, the demand curve does not slope down from left to right; instead, it presents
1448-427: A comparatively destitute country in 1951, India has become a fast-growing major economy and a hub for information technology services , with an expanding middle class. India has a space programme with several planned or completed extraterrestrial missions . Indian movies , music , and spiritual teachings play an increasing role in global culture. India has substantially reduced its rate of poverty , though at
1629-433: A defined set of processes, capabilities and recommended behaviors for companies that produce goods and services. Consumer electronics and goods companies often lead in the application of demand management practices to their demand chains; demand management outcomes are a reflection of policies and programs to influence demand as well as competition and options available to users and consumers. Effective demand management follows
1810-460: A function f of quantity demanded: P = f(Q). To compute the inverse demand equation, simply solve for P from the demand equation. For example, if the demand equation is Q = 240 - 2P then the inverse demand equation would be P = 120 - .5Q, the right side of which is the inverse demand function. The inverse demand function is useful in deriving the total and marginal revenue functions. Total revenue equals price, P, times quantity, Q, or TR = P×Q. Multiply
1991-511: A good and vice versa. The law of demand applies to a variety of organisational and business situations. Price determination, government policy formation etc are examples. Together with the law of supply, the law of demand provides to us the equilibrium price and quantity. Moreover, the law of demand and supply explains why goods are priced at the level that they are. They also help us identify opportunities to buy what are perceived to be underpriced (or sell overpriced) goods or assets. Law of Demand
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#17327723448482172-423: A graph called the demand curve , with quantity demanded on the x-axis and price on the y-axis. Demand curves are downward sloping by definition of the law of demand. The law of demand also works together with the law of supply to determine the efficient allocation of resources in an economy through the equilibrium price and quantity . The relationship between price and quantity demanded holds true so long as it
2353-417: A high-priced stock are that previous buyers who bid up the price are proof of the issue's quality, or conversely, that an issue's low price may be evidence of viability problems. Likewise, demand among short traders during a short squeeze can increase as price increases. Unlike Giffen goods , which are inferior items, Veblen goods are generally high quality goods. The demand for Veblen goods increases with
2534-491: A higher price later. Similarly, if people expect an increase in their income, they will buy more commodities in anticipation of a rise in their income. In the same way if consumers expect scarcity of certain goods in future on account of their expectation that its production may fall in future due to strike, crop failure, etc., the current demand for such goods would increase. Consumer-Credit Facilities : If consumers are able to get credit facilities or they are able to borrow from
2715-796: A long-lasting composite Hindu culture in south India. In the Punjab , Sikhism emerged, rejecting institutionalised religion. The Mughal Empire , in 1526, ushered in two centuries of relative peace, leaving a legacy of luminous architecture . Gradually expanding rule of the British East India Company followed, turning India into a colonial economy but also consolidating its sovereignty . British Crown rule began in 1858. The rights promised to Indians were granted slowly, but technological changes were introduced, and modern ideas of education and public life took root. A pioneering and influential nationalist movement emerged, which
2896-674: A majority in the Parliament . Since then, however, it has increasingly shared the political stage with the BJP, as well as with powerful regional parties which have often forced the creation of multi-party coalition governments at the center. In the Republic of India's first three general elections, in 1951 , 1957 , and 1962 , the Pandit Jawaharlal Nehru -led Congress won easy victories. On Nehru's death in 1964, Lal Bahadur Shastri briefly became prime minister; he
3077-409: A person's demand for anything increases, we mean that he will buy more of it than he would before at the same price, and that he will buy as much of it as before at a higher price". The law of demand, however, only makes a qualitative statement in the sense that it describes the direction of change in the amount of quantity demanded but not the magnitude of change. The law of demand is represented by
3258-402: A prohibitively high price would cause some individuals to be incapable of purchasing insulin entirely. On the other hand, if insulin was sold at a very low price, it is possible that some individuals would purchase more insulin if they were not able to afford it before. Because of the effects of extreme pricing, no good can be considered truly perfectly inelastic. In perfectly competitive markets
3439-685: A quarter of a million local government bodies at city, town, block, district and village levels. In the 1950s, India strongly supported decolonisation in Africa and Asia and played a leading role in the Non-Aligned Movement . After initially cordial relations with neighbouring China, India went to war with China in 1962 and was widely thought to have been humiliated. This was followed by another military conflict in 1967 in which India successfully repelled Chinese attack. India has had tense relations with neighbouring Pakistan;
3620-451: A reduction of needs can one promote a genuine reduction in those tensions which are the ultimate causes of strife and war. Demand reduction refers to efforts aimed at reducing the public desire for illegal and illicit drugs. The drug policy is in contrast to the reduction of drug supply , but the two policies are often implemented together. Energy demand management , also known as demand-side management (DSM) or demand-side response (DSR),
3801-438: A result, the demand for different goods changes. Consumers' Expectations : Consumers' expectations regarding factors such as future prices, income, and availability of goods play a crucial role in determining the demand for goods and services in the present period. For instance, if consumers anticipate a future increase in the price of a commodity, they are likely to demand a greater quantity of that commodity now to avoid paying
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#17327723448483982-444: A single good can still increase even though its price also increased, if there is another good whose price increased and which is sufficiently substituted away from. If good i is a Giffen good whose price increases while other goods' prices are held fixed (so that p j ′ − p j = 0 ∀ j ≠ i {\textstyle p_{j}'-p_{j}=0\;\forall j\neq i} ),
4163-402: A small change in price results in a large change in quantity demanded. Inelastic demand occurs when the percentage change in quantity demanded is smaller than the percentage change in price. Unitary elasticity occurs when the percentage change in quantity demanded is equal to the percentage change in price. Factors affecting price elasticity of demand include the availability of substitute goods,
4344-431: A third of Indian plant species are endemic. India also contains four of the world's 34 biodiversity hotspots , or regions that display significant habitat loss in the presence of high endemism. According to official statistics, India's forest cover is 713,789 km (275,595 sq mi), which is 21.71% of the country's total land area. It can be subdivided further into broad categories of canopy density , or
4525-591: A variety of other economic theories and concepts. Due to general agreement with the observation, economists have come to accept the validity of the law under most situations. Economist also see Alfred Marshall as the pioneer of the standard demand and supply diagrams and their use in economic analysis including welfare applications and consumer surplus. Consider the function Q x = f ( P x ; Y ) {\displaystyle \ Q_{x}=f(P_{x};\mathbf {Y} )} , where Q x {\displaystyle Q_{x}}
4706-566: A young and rapidly growing working-age population; growth in the manufacturing sector because of rising education and engineering skill levels; and sustained growth of the consumer market driven by a rapidly growing middle-class. The World Bank cautions that, for India to achieve its economic potential, it must continue to focus on public sector reform, transport infrastructure , agricultural and rural development, removal of labour regulations, education , energy security , and public health and nutrition. Law of demand In microeconomics ,
4887-468: Is where PED m is the market elasticity of demand, PES is the elasticity of supply of each of the other firms, and (n -1) is the number of other firms. This formula suggests two things. The demand curve is not perfectly elastic and if there are a large number of firms in the industry the elasticity of demand for any individual firm will be extremely high and the demand curve facing the firm will be nearly flat. For example, assume that there are 80 firms in
5068-528: Is a federation with a parliamentary system governed under the Constitution of India—the country's supreme legal document. It is a constitutional republic. Federalism in India defines the power distribution between the union and the states . The Constitution of India, which came into effect on 26 January 1950, originally stated India to be a " sovereign , democratic republic ;" this characterisation
5249-426: Is a good that is used with the primary good. Examples include hotdogs and mustard, beer and pretzels, automobiles and gasoline. (Perfect complements behave as a single good.) If the price of the complement goes up, the quantity demanded of the other good goes down. Mathematically, the variable representing the price of the complementary good would have a negative coefficient in the demand function. For example, Q d =
5430-458: Is a graphical presentation of the " law of demand ". The curve shows how the price of a commodity or service changes as the quantity demanded increases. Every point on the curve is an amount of consumer demand and the corresponding market price. The graph shows the law of demand, which states that people will buy less of something if the price goes up and vice versa. According to Kotler, eight demand states are possible: The price elasticity of demand
5611-413: Is a measure of the sensitivity of the quantity variable, Q, to changes in the price variable, P. It shows the percent by which the quantity demanded will change as a result of a given percentage change in the price. Thus, a demand elasticity of -2 says that the quantity demanded will fall 2% if the price rises 1%. For infinitesimal changes, the elasticity is (∂Q/∂P)×(P/Q). The slope of a linear demand curve
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5792-588: Is an economic measurement tool developed to measure the sensitivity of a goods quantity demanded when there is a change in the real income of a consumer. To calculate the income elasticity of demand, the percentage change in quantity demanded is divided by the percentage change in the consumers income. The Income elasticity of demand allows businesses to analyse and further predict the impact of business cycles on total sales. The Income elastitcty of demand thus allows goods to be broadly categorised as Normal goods and Inferior goods . A positive measurement suggests that
5973-435: Is complied with the ceteris paribus condition "all else remain equal" quantity demanded varies inversely with price when income and the prices of other goods remain constant. If all else are not held equal, the law of demand may not necessarily hold. In the real world, there are many determinants of demand other than price, such as the prices of other goods, the consumer's income, preferences etc. There are also exceptions to
6154-414: Is constant. The elasticity of demand changes continuously as one moves down the demand curve because the ratio of price to quantity continuously falls. At the point the demand curve intersects the y-axis, demand becomes infinitely elastic, because the variable Q appearing in the denominator of the elasticity formula is zero. At the point the demand curve intersects the x-axis, the elasticity is zero, because
6335-699: Is defined by regional kingdoms and cultural diversity. When Harsha of Kannauj , who ruled much of the Indo-Gangetic Plain from 606 to 647 CE , attempted to expand southwards, he was defeated by the Chalukya ruler of the Deccan. When his successor attempted to expand eastwards, he was defeated by the Pala king of Bengal . When the Chalukyas attempted to expand southwards, they were defeated by
6516-414: Is divided by the percentage change in advertising expenditures. A business utilises the advertising elasticity of demand to measure the effectiveness of advertising on generating new sales. A positive elasticity indicates success for the advertisement as demand for the goods has increased. However, this measurement is also subject to the availability of substitutes, consumer behaviours and price points of
6697-470: Is expected to remain so in the near future. According to a 2011 PricewaterhouseCoopers ( PwC ) report, India's GDP at purchasing power parity could overtake that of the United States by 2045. During the next four decades, Indian GDP is expected to grow at an annualised average of 8%, making it potentially the world's fastest-growing major economy until 2050. The report highlights key growth factors:
6878-416: Is indicated by a shift in the demand curve. Quantity demanded, on the other hand refers to a specific point on the demand curve which corresponds to a specific price. A change in quantity demanded therefore refers to a movement along the existing demand curve. However, there are some exceptions to the law of demand. For instance, if the price of cigarettes goes up, its demand does not decrease. The exceptions to
7059-624: Is indicated by the large number of megalithic monuments dating from this period, as well as by nearby traces of agriculture , irrigation tanks , and craft traditions. In the late Vedic period, around the 6th century BCE, the small states and chiefdoms of the Ganges Plain and the north-western regions had consolidated into 16 major oligarchies and monarchies that were known as the mahajanapadas . The emerging urbanisation gave rise to non-Vedic religious movements, two of which became independent religions. Jainism came into prominence during
7240-469: Is relied heavily upon by managerial economics, which is a branch of economics that applies microeconomic analysis to managerial decision-making, to make informed decisions on pricing, production, and marketing strategies. In this context, understanding the alternative factors that influence the Law of Demand becomes crucial for managers and decision-makers. Demand refers to the demand curve . A change in demand
7421-408: Is said to be inelastic. Constant elasticity of demand occurs when Q = a P c {\displaystyle Q=aP^{c}} where a and c are parameters, and the constant price elasticity is c ≤ 0. {\displaystyle c\leq 0.} Perfectly inelastic demand is represented by a vertical demand curve. Under perfect price inelasticity of demand,
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7602-599: Is supported among these forests, and elsewhere, in protected habitats . According to the Oxford English Dictionary (third edition 2009), the name "India" is derived from the Classical Latin India , a reference to South Asia and an uncertain region to its east. In turn the name "India" derived successively from Hellenistic Greek India ( Ἰνδία ), ancient Greek Indos ( Ἰνδός ), Old Persian Hindush (an eastern province of
7783-404: Is the partial derivative operator. The above equation, when plotted with quantity demanded ( Q x {\displaystyle Q_{x}} ) on the x {\displaystyle x} -axis and price ( P x {\displaystyle P_{x}} ) on the y {\displaystyle y} -axis, gives the demand curve , which is also known as
7964-648: Is the modification of consumer demand for energy through various methods such as financial incentives and behavioral change through education. India India , officially the Republic of India , is a country in South Asia . It is the seventh-largest country in the world by area and the most populous country . Bounded by the Indian Ocean on the south, the Arabian Sea on the southwest, and
8145-400: Is the price of commodity 'n', 'P 1 ... P n-1 ' indicates the price of all other commodities, 'Y' is the income, 'T' stands for the taste, 'E' stands for expectations, 'H' is the size of population, 'G' stands for government's policy. In this demand function, D n is treated as dependent variable, and all the factors on the right-hand side are treated as independent variables. Demand curve
8326-405: Is the profit maximizing quantity: to find the profit-maximizing price simply plug the value of Q into the inverse demand equation and solve for P. The demand curve facing a particular firm is called the residual demand curve. The residual demand curve is the market demand that is not met by other firms in the industry at a given price. The residual demand curve is the market demand curve D(p), minus
8507-545: Is the purpose of economic activity, offering a framework of what he calls " Buddhist economics " in which wise demands, fulfilling genuine human needs, are distinguished from unwise demands, arising from the five intellectual impairments recognized by Buddhism: The cultivation and expansion of needs is the antithesis of wisdom. It is also the antithesis of freedom and peace. Every increase of needs tends to increase one's dependence on outside forces over which one cannot have control, and therefore increases existential fear. Only by
8688-660: Is the quantity demanded of good x {\displaystyle x} , f {\displaystyle f} is the demand function , P x {\displaystyle P_{x}} is the price of the good and Y {\displaystyle \mathbf {Y} } is the list of parameters other than the price. The law of demand states that ∂ f ∂ P x < 0 {\displaystyle {\frac {\partial f}{\partial P_{x}}}<0} . Here ∂ / ∂ P x {\displaystyle \partial /\partial P_{x}}
8869-722: The Achaemenid Empire ), and ultimately its cognate , the Sanskrit Sindhu , or "river", specifically the Indus River and, by implication, its well-settled southern basin. The ancient Greeks referred to the Indians as Indoi ( Ἰνδοί ), which translates as "The people of the Indus". The term Bharat ( Bhārat ; pronounced [ˈbʱaːɾət] ), mentioned in both Indian epic poetry and
9050-573: The Arabian Sea . Coastal features include the marshy Rann of Kutch of western India and the alluvial Sundarbans delta of eastern India; the latter is shared with Bangladesh. India has two archipelagos : the Lakshadweep , coral atolls off India's south-western coast; and the Andaman and Nicobar Islands, a volcanic chain in the Andaman Sea . Indian climate is strongly influenced by
9231-506: The Asiatic cheetah ; the blackbuck, no longer extant in Punjab, is now severely endangered in India, and the cheetah is extinct. The pervasive and ecologically devastating human encroachment of recent decades has critically endangered Indian wildlife. In response, the system of national parks and protected areas , first established in 1935, was expanded substantially. In 1972, India enacted
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#17327723448489412-772: The Bay of Bengal on the southeast, it shares land borders with Pakistan to the west; China , Nepal , and Bhutan to the north; and Bangladesh and Myanmar to the east. In the Indian Ocean, India is in the vicinity of Sri Lanka and the Maldives ; its Andaman and Nicobar Islands share a maritime border with Thailand , Myanmar, and Indonesia . Modern humans arrived on the Indian subcontinent from Africa no later than 55,000 years ago. Their long occupation, initially in varying forms of isolation as hunter-gatherers, has made
9593-615: The Comprehensive Nuclear-Test-Ban Treaty nor the Nuclear Non-Proliferation Treaty , considering both to be flawed and discriminatory. India maintains a " no first use " nuclear policy and is developing a nuclear triad capability as a part of its " Minimum Credible Deterrence " doctrine. It is developing a ballistic missile defence shield and, a fifth-generation fighter jet . Other indigenous military projects involve
9774-475: The Constitution of India , is used in its variations by many Indian languages . A modern rendering of the historical name Bharatavarsha , which applied originally to North India , Bharat gained increased currency from the mid-19th century as a native name for India. Hindustan ( [ɦɪndʊˈstaːn] ) is a Middle Persian name for India that became popular by the 13th century, and
9955-686: The Ganges and the Brahmaputra . According to some current projections, the number and severity of droughts in India will have markedly increased by the end of the present century. India is a megadiverse country , a term employed for 17 countries that display high biological diversity and contain many species exclusively indigenous , or endemic , to them. India is the habitat for 8.6% of all mammals , 13.7% of bird species, 7.9% of reptile species, 6% of amphibian species, 12.2% of fish species, and 6.0% of all flowering plant species. Fully
10136-586: The Himalayas . Immediately south of the emerging Himalayas, plate movement created a vast crescent-shaped trough that rapidly filled with river-borne sediment and now constitutes the Indo-Gangetic Plain . The original Indian plate makes its first appearance above the sediment in the ancient Aravalli range , which extends from the Delhi Ridge in a southwesterly direction. To the west lies
10317-548: The Indian Rebellion of 1857 . Fed by diverse resentments and perceptions, including invasive British-style social reforms, harsh land taxes, and summary treatment of some rich landowners and princes, the rebellion rocked many regions of northern and central India and shook the foundations of Company rule. Although the rebellion was suppressed by 1858, it led to the dissolution of the East India Company and
10498-613: The Indus Valley Civilisation , the first urban culture in South Asia, which flourished during 2500–1900 BCE in Pakistan and western India. Centred around cities such as Mohenjo-daro , Harappa , Dholavira , and Kalibangan , and relying on varied forms of subsistence, the civilisation engaged robustly in crafts production and wide-ranging trade. During the period 2000–500 BCE , many regions of
10679-668: The Pallavas from farther south, who in turn were opposed by the Pandyas and the Cholas from still farther south. No ruler of this period was able to create an empire and consistently control lands much beyond their core region. During this time, pastoral peoples, whose land had been cleared to make way for the growing agricultural economy, were accommodated within caste society, as were new non-traditional ruling classes. The caste system consequently began to show regional differences. In
10860-557: The South Asia Satellite , a gift from India to its neighbouring SAARC countries. In October 2018, India signed a US$ 5.43 billion (over ₹ 400 billion) agreement with Russia to procure four S-400 Triumf surface-to-air missile defence systems, Russia's most advanced long-range missile defence system. According to the International Monetary Fund (IMF), the Indian economy in 2024
11041-735: The South Asian Association for Regional Cooperation and the World Trade Organization . The nation has provided 100,000 military and police personnel to serve in 35 UN peacekeeping operations across four continents. It participates in the East Asia Summit , the G8+5 , and other multilateral forums. India has close economic ties with countries in South America , Asia, and Africa; it pursues
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#173277234484811222-748: The Thar Desert , the eastern spread of which is checked by the Aravallis. The remaining Indian Plate survives as peninsular India , the oldest and geologically most stable part of India. It extends as far north as the Satpura and Vindhya ranges in central India. These parallel chains run from the Arabian Sea coast in Gujarat in the west to the coal-rich Chota Nagpur Plateau in Jharkhand in
11403-739: The United Kingdom , and Canada . The President of India is the supreme commander of the nation's armed forces; with 1.45 million active troops, they compose the world's second-largest military . It comprises the Indian Army , the Indian Navy , the Indian Air Force , and the Indian Coast Guard . The official Indian defence budget for 2011 was US$ 36.03 billion, or 1.83% of GDP. Defence expenditure
11584-717: The Wildlife Protection Act and Project Tiger to safeguard crucial wilderness; the Forest Conservation Act was enacted in 1980 and amendments added in 1988. India hosts more than five hundred wildlife sanctuaries and eighteen biosphere reserves , four of which are part of the World Network of Biosphere Reserves ; seventy-five wetlands are registered under the Ramsar Convention . A parliamentary republic with
11765-496: The direct administration of India by the British government. Proclaiming a unitary state and a gradual but limited British-style parliamentary system, the new rulers also protected princes and landed gentry as a feudal safeguard against future unrest. In the decades following, public life gradually emerged all over India, leading eventually to the founding of the Indian National Congress in 1885. The rush of technology and
11946-409: The graphical illustration of the law of demand. In Principles of Economics (1890), Alfred Marshall reconciled the demand and supply into a single analytical framework. The formulation of the demand curve was provided by the utility theory while supply curve was determined by the cost. This idea of demand and supply curve is what we still use today to develop the market equilibrium and to support
12127-416: The law of demand is a fundamental principle which states that there is an inverse relationship between price and quantity demanded. In other words, "conditional on all else being equal , as the price of a good increases (↑) , quantity demanded will decrease (↓) ; conversely, as the price of a good decreases (↓) , quantity demanded will increase (↑) ". Alfred Marshall worded this as: "When we say that
12308-465: The price elasticity of demand . The formula to solve for the coefficient of price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in Price. Price elasticity of demand can be classified as elastic, inelastic, or unitary. An elastic demand occurs when the percentage change in the quantity demanded is greater than the percentage change in price, meaning that
12489-485: The substitution effect . This can be illustrated with the Slutsky equation for a change in a good's own price: The first term on the right-hand side is the substitution effect, which is always negative. The second term on the right side is the income effect, which can be positive or negative. For inferior goods, this is negative, so subtracting this means adding its positive absolute value. The non-derivative component of
12670-408: The supply of other organizations, So(p): Dr(p) = D(p) - So(p) If the demand curve is linear, then it has the form: Qd = a - b*P, where p is the price of the good and q is the quantity demanded. The intercept of the curve and the vertical axis is represented by a, meaning the price when no quantity demanded. and b is the slope of the demand function. If the demand function has the form like that, then
12851-531: The temperate coniferous forest of the Himalayas , the moist deciduous sal forest of eastern India, and the dry deciduous teak forest of central and southern India. Open forest , whose canopy density is between 10% and 40%, occupies 9.26% of India's land area. India has two natural zones of thorn forest , one in the Deccan Plateau , immediately east of the Western Ghats, and the other in
13032-476: The 10th century, Muslim Central Asian nomadic clans, using swift-horse cavalry and raising vast armies united by ethnicity and religion, repeatedly overran South Asia's north-western plains, leading eventually to the establishment of the Islamic Delhi Sultanate in 1206. The sultanate was to control much of North India and to make many forays into South India. Although at first disruptive for
13213-686: The 17th century was a factor in India's economic expansion, resulting in greater patronage of painting , literary forms, textiles, and architecture . Newly coherent social groups in northern and western India, such as the Marathas , the Rajputs , and the Sikhs , gained military and governing ambitions during Mughal rule, which, through collaboration or adversity, gave them both recognition and military experience. Expanding commerce during Mughal rule gave rise to new Indian commercial and political elites along
13394-716: The 1820s. India was then no longer exporting manufactured goods as it long had, but was instead supplying the British Empire with raw materials. Many historians consider this to be the onset of India's colonial period. By this time, with its economic power severely curtailed by the British parliament and having effectively been made an arm of British administration, the East India Company began more consciously to enter non-economic arenas, including education, social reform, and culture. Historians consider India's modern age to have begun sometime between 1848 and 1885. The appointment in 1848 of Lord Dalhousie as Governor General of
13575-713: The 1980s and the collaboration with Soviet Union for technical know-how, has created a large urban middle class, transformed India into one of the world's fastest-growing economies , and increased its geopolitical clout. Yet, India is also shaped by seemingly unyielding poverty, both rural and urban; by religious and caste-related violence ; by Maoist-inspired Naxalite insurgencies ; and by separatism in Jammu and Kashmir and in Northeast India . It has unresolved territorial disputes with China and with Pakistan . India's sustained democratic freedoms are unique among
13756-535: The 3rd century BCE, the kingdom of Magadha had annexed or reduced other states to emerge as the Maurya Empire . The empire was once thought to have controlled most of the subcontinent except the far south, but its core regions are now thought to have been separated by large autonomous areas. The Mauryan kings are known as much for their empire-building and determined management of public life as for Ashoka 's renunciation of militarism and far-flung advocacy of
13937-746: The 4th and 5th centuries, the Gupta Empire had created a complex system of administration and taxation in the greater Ganges Plain; this system became a model for later Indian kingdoms. Under the Guptas, a renewed Hinduism based on devotion, rather than the management of ritual, began to assert itself. This renewal was reflected in a flowering of sculpture and architecture , which found patrons among an urban elite. Classical Sanskrit literature flowered as well, and Indian science , astronomy , medicine , and mathematics made significant advances. The Indian early medieval age, from 600 to 1200 CE ,
14118-545: The 6th and 7th centuries, the first devotional hymns were created in the Tamil language. They were imitated all over India and led to both the resurgence of Hinduism and the development of all modern languages of the subcontinent . Indian royalty, big and small, and the temples they patronised drew citizens in great numbers to the capital cities, which became economic hubs as well. Temple towns of various sizes began to appear everywhere as India underwent another urbanisation. By
14299-585: The 8th and 9th centuries, the effects were felt in Southeast Asia, as South Indian culture and political systems were exported to lands that became part of modern-day Myanmar , Thailand , Laos , Brunei , Cambodia , Vietnam , Philippines , Malaysia , and Indonesia . Indian merchants, scholars, and sometimes armies were involved in this transmission; Southeast Asians took the initiative as well, with many sojourning in Indian seminaries and translating Buddhist and Hindu texts into their languages. After
14480-433: The Andaman, Nicobar, and Lakshadweep island chains. According to the Indian naval hydrographic charts, the mainland coastline consists of the following: 43% sandy beaches; 11% rocky shores, including cliffs; and 46% mudflats or marshy shores. Major Himalayan-origin rivers that substantially flow through India include the Ganges and the Brahmaputra , both of which drain into the Bay of Bengal . Important tributaries of
14661-528: The BJP became the first political party since 1984 to win a majority and govern without the support of other parties. In the 2019 general election , the BJP was victorious again with majority. In the 2024 general election , the BJP failed to achieve majority and the BJP-led NDA coalition formed the government . Narendra Modi , a former chief minister of Gujarat , is serving as the 14th Prime Minister of India in his third term since May 26, 2014. India
14842-646: The BJP was able to form a successful coalition, the National Democratic Alliance (NDA). Led by Atal Bihari Vajpayee , the NDA became the first non-Congress, coalition government to complete a five-year term. Again in the 2004 Indian general elections , no party won an absolute majority, but the Congress emerged as the largest single party, forming another successful coalition: the United Progressive Alliance (UPA). It had
15023-540: The Balance of Trade (1699)". However, there were instances of its understanding and use much earlier when Gregory King (1648-1712) made a demonstration of the law of demand. He represented a relationship between the price of wheat and the harvest where the results suggested that if the harvest falls by 50%, the price would rise by 500%. This demonstration illustrated the law of demand as well as its elasticity. Skipping forward to 1890, economist Alfred Marshall documented
15204-601: The Buddha is recorded in the Pali canon to have sought enlightenment. Many Indian species have descended from those of Gondwana , the southern supercontinent from which India separated more than 100 million years ago. India's subsequent collision with Eurasia set off a mass exchange of species. However, volcanism and climatic changes later caused the extinction of many endemic Indian forms. Still later, mammals entered India from Asia through two zoogeographic passes flanking
15385-656: The Buddhist dhamma . The Sangam literature of the Tamil language reveals that, between 200 BCE and 200 CE , the southern peninsula was ruled by the Cheras , the Cholas , and the Pandyas , dynasties that traded extensively with the Roman Empire and with West and Southeast Asia . In North India, Hinduism asserted patriarchal control within the family, leading to increased subordination of women. By
15566-685: The Congress saw a change in leadership in 1984, when Indira Gandhi was assassinated ; she was succeeded by her son Rajiv Gandhi , who won an easy victory in the general elections later that year . The Congress was voted out again in 1989 when a National Front coalition, led by the newly formed Janata Dal in alliance with the Left Front , won the elections; that government too proved relatively short-lived, lasting just under two years. There were two prime ministers during this period; V.P. Singh and Chandra Shekhar . Elections were held again in 1991 ; no party won an absolute majority. The Congress, as
15747-476: The East India Company set the stage for changes essential to a modern state. These included the consolidation and demarcation of sovereignty, the surveillance of the population, and the education of citizens. Technological changes—among them, railways, canals, and the telegraph—were introduced not long after their introduction in Europe . However, disaffection with the company also grew during this time and set off
15928-943: The Ganges include the Yamuna and the Kosi ; the latter's extremely low gradient, caused by long-term silt deposition, leads to severe floods and course changes. Major peninsular rivers, whose steeper gradients prevent their waters from flooding, include the Godavari , the Mahanadi , the Kaveri , and the Krishna , which also drain into the Bay of Bengal; and the Narmada and the Tapti , which drain into
16109-555: The Himalayas and the Thar Desert, both of which drive the economically and culturally pivotal summer and winter monsoons . The Himalayas prevent cold Central Asian katabatic winds from blowing in, keeping the bulk of the Indian subcontinent warmer than most locations at similar latitudes. The Thar Desert plays a crucial role in attracting the moisture-laden south-west summer monsoon winds that, between June and October, provide
16290-399: The Himalayas. This had the effect of lowering endemism among India's mammals, which stands at 12.6%, contrasting with 45.8% among reptiles and 55.8% among amphibians. Among endemics are the vulnerable hooded leaf monkey and the threatened Beddome's toad of the Western Ghats. India contains 172 IUCN -designated threatened animal species , or 2.9% of endangered forms. These include
16471-401: The Indian elites, the sultanate largely left its vast non-Muslim subject population to its own laws and customs. By repeatedly repulsing Mongol raiders in the 13th century, the sultanate saved India from the devastation visited on West and Central Asia, setting the scene for centuries of migration of fleeing soldiers, learned men, mystics, traders, artists, and artisans from that region into
16652-463: The Mughals united their far-flung realms through loyalty, expressed through a Persianised culture, to an emperor who had near-divine status. The Mughal state's economic policies, deriving most revenues from agriculture and mandating that taxes be paid in the well-regulated silver currency, caused peasants and artisans to enter larger markets. The relative peace maintained by the empire during much of
16833-480: The Total Revenue should equal quantity demanded times the price of the good, which can be represented by: TR= q*p = q(a-bq). Practically every introductory microeconomics text describes the demand curve facing a perfectly competitive firm as being flat or horizontal. A horizontal demand curve is perfectly elastic. If there are n identical firms in the market then the elasticity of demand PED facing any one firm
17014-557: The advent of independence in 1947, but tempered by the partition of India into two states: India and Pakistan. Vital to India's self-image as an independent nation was its constitution, completed in 1950, which put in place a secular and democratic republic. Per the London Declaration , India retained its membership of the Commonwealth , becoming the first republic within it. Economic liberalisation, which began in
17195-512: The agricultural sector 18.1%. India's foreign exchange remittances of US$ 100 billion in 2022, highest in the world, were contributed to its economy by 32 million Indians working in foreign countries. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, and potatoes. Major industries include textiles, telecommunications, chemicals, pharmaceuticals, biotechnology, food processing, steel, transport equipment, cement, mining, petroleum, machinery, and software. In 2006,
17376-498: The banking sector, 44th in business sophistication, and 39th in innovation, ahead of several advanced economies. With seven of the world's top 15 information technology outsourcing companies based in India, as of 2009 , the country is viewed as the second-most favourable outsourcing destination after the United States. India is ranked 39th in the Global Innovation Index in 2024. As of 2023 , India's consumer market
17557-471: The banks, they would be tempted to purchase certain good they could not have purchased otherwise. For instance, the demand for cars in India has increased partly because people are able to get loans from the banks to purchase cars. Demonstration Effect : Demonstration effect refers to the tendency of a person to emulate the consumption style of other persons such as their friends, neighbours, etc. For instance,
17738-608: The beginnings of a nonviolent movement of non-co-operation, of which Mahatma Gandhi would become the leader and enduring symbol. During the 1930s, slow legislative reform was enacted by the British; the Indian National Congress won victories in the resulting elections. The next decade was beset with crises: Indian participation in World War ;II , the Congress's final push for non-co-operation, and an upsurge of Muslim nationalism . All were capped by
17919-441: The case. Consumers' Tastes or Preferences : The greater the desire to own a good the more likely one is to buy the good. There is a basic distinction between desire and demand. Tastes and preferences depend on social customs, habits of the people, fashion, general lifestyle of the people, advertisement, new inventions, etc. Some of these factors like fashion keep on changing, leading to change in consumers' tastes and preferences. As
18100-495: The coasts of southern and eastern India. As the empire disintegrated, many among these elites were able to seek and control their own affairs. By the early 18th century, with the lines between commercial and political dominance being increasingly blurred, a number of European trading companies, including the English East India Company , had established coastal outposts. The East India Company's control of
18281-452: The commercialisation of agriculture in the second half of the 19th century was marked by economic setbacks, and many small farmers became dependent on the whims of far-away markets. There was an increase in the number of large-scale famines , and, despite the risks of infrastructure development borne by Indian taxpayers, little industrial employment was generated for Indians. There were also salutary effects: commercial cropping, especially in
18462-409: The commodity : Most important determinant of the demand for a commodity is the price of the commodity itself. Normally there is an inverse relationship between the price of the commodity and its quantity demanded. It implies that the lower the price of the commodity, the larger is the quantity demanded and the higher the price, the lesser is the quantity demanded. This negative relationship is embodied in
18643-438: The concept of a "closed loop" where feedback from the results of the demand plans is fed back into the planning process to improve the predictability of outcomes. Many practices reflect elements of systems dynamics. Volatility is being recognized as significant an issue as the focus on variance of demand to plans and forecasts. Negative demand: If the market response to a product is negative, it shows that people are not aware of
18824-625: The contribution of petrochemical and engineering goods to total exports grew from 14% to 42%. India was the world's second-largest textile exporter after China in the 2013 calendar year. Averaging an economic growth rate of 7.5% for several years prior to 2007, India has more than doubled its hourly wage rates during the first decade of the 21st century. Some 431 million Indians have left poverty since 1985; India's middle classes are projected to number around 580 million by 2030. Though ranking 68th in global competitiveness , as of 2010 , India ranks 17th in financial market sophistication, 24th in
19005-579: The cost of increasing economic inequality. India is a nuclear-weapon state , which ranks high in military expenditure . It has disputes over Kashmir with its neighbours, Pakistan and China, unresolved since the mid-20th century. Among the socio-economic challenges India faces are gender inequality , child malnutrition , and rising levels of air pollution . India's land is megadiverse , with four biodiversity hotspots . Its forest cover comprises 21.7% of its area. India's wildlife , which has traditionally been viewed with tolerance in India's culture ,
19186-478: The demand curve is negatively sloped and there is a separate marginal revenue curve. A firm in a less than perfectly competitive market is a price-setter. The firm can decide how much to produce or what price to charge. In deciding one variable the firm is necessarily determining the other variable In its standard form a linear demand equation is Q = a - bP. That is, quantity demanded is a function of price. The inverse demand equation, or price equation, treats price as
19367-401: The demand curve rather it will cause a movement along the demand curve for housing i.e. change in quantity demanded. But if we look at mortgage rates (a factor other than price), even if housing prices remain unchanged, an increased mortgage rate leads to a lower willingness to buy at all prices, shifting the demand curve to the left. Consumers will buy less, even though the price is the same. On
19548-475: The demand curve which corresponds to a specific price. Therefore, quantity demanded represents the exact quantity of a good or service demanded by a consumer at a particular price, conditional on the other determinants. A change in quantity demanded can be indicated by a movement along the existing demand curve that is caused only by a change in price. For instance, let's take the example of a housing market. An increase or decrease in price of housing will not shift
19729-535: The demand curve, the average revenue curve, and the marginal revenue curve all coincide and are horizontal at the market-given price. The demand curve is perfectly elastic and coincides with the average and marginal revenue curves. Economic actors are price-takers. Perfectly competitive firms have zero market power; that is, they have no ability to affect the terms and conditions of exchange. A perfectly competitive firm's decisions are limited to whether to produce and if so, how much. In less than perfectly competitive markets
19910-407: The demand for a commodity and various factors affecting demand. The algebraic expression of the demand function is given in the form of the following equation: D n = f (P n , P 1 ...P n-1 , Y, T, E, H, G...) where 'D n ' denotes the demand for a particular commodity 'n', f shows the functional relation between the demand for the commodity 'n' and the factors affecting its demand, 'P n '
20091-401: The demand for luxury cars and expensive mobile sets has increased in recent years partly because of the desire of the people to follow the consumption style of others. Distribution of Income : Distribution of income in the country also affects the demand for goods. If the distribution of income in a country in unequal. there will be more demand for luxury goods like cars and LED televisions. On
20272-484: The demand for the good in question goes down. Income of the Consumer : Income of the consumer is the basic determinant of the quantity demanded of a product as it determines the purchasing power of the consumer. Generally, there is a direct relationship between the income of the consumer and his demand for a product, i.e., with an increase in income, the demand for the commodity increases. However, this may not always be
20453-467: The demand schedule. The demand curve is downward sloping illustrating the inverse relationship between quantity demanded and price. Therefore, a downward sloping demand curve embeds the law of demand. In a more specific manner: Which is a functional relationship where the quantity demanded by the consumer Q d x {\displaystyle Qdx} depends on the price of the good P x {\displaystyle P_{x}} ,
20634-581: The design and implementation of Vikrant -class aircraft carriers and Arihant -class nuclear submarines . Since the end of the Cold War , India has increased its economic, strategic, and military co-operation with the United States and the European Union . In 2008, a civilian nuclear agreement was signed between India and the United States. Although India possessed nuclear weapons at
20815-460: The downward slope of the consumer demand curve. The assumption of an inverse relationship between price and demand is both reasonable and intuitive. For instance, if the price of a gallon of milk were to increase from $ 5 to $ 15, this significant price rise would render the commodity unaffordable for some consumers, thereby leading to a decrease in demand. Price of related goods : The principal related goods are complements and substitutes. A complement
20996-507: The early 16th century, northern India, then under mainly Muslim rulers, fell again to the superior mobility and firepower of a new generation of Central Asian warriors. The resulting Mughal Empire did not stamp out the local societies it came to rule. Instead, it balanced and pacified them through new administrative practices and diverse and inclusive ruling elites, leading to more systematic, centralised, and uniform rule. Eschewing tribal bonds and Islamic identity, especially under Akbar ,
21177-536: The early mediaeval era, Christianity , Islam , Judaism , and Zoroastrianism became established on India's southern and western coasts. Muslim armies from Central Asia intermittently overran India's northern plains, eventually founding the Delhi Sultanate and drawing northern India into the cosmopolitan networks of mediaeval Islam . In the 15th century, the Vijayanagara Empire created
21358-664: The east. To the south, the remaining peninsular landmass, the Deccan Plateau , is flanked on the west and east by coastal ranges known as the Western and Eastern Ghats ; the plateau contains the country's oldest rock formations, some over one billion years old. Constituted in such fashion, India lies to the north of the equator between 6° 44′ and 35° 30′ north latitude and 68° 7′ and 97° 25′ east longitude. India's coastline measures 7,517 kilometres (4,700 mi) in length; of this distance, 5,423 kilometres (3,400 mi) belong to peninsular India and 2,094 kilometres (1,300 mi) to
21539-452: The effective range of pricing power the firm has because any attempt to raise prices by a higher percentage will effectively reduce quantity demanded to zero. Demand management in economics is the art or science of controlling economic or aggregate demand to avoid a recession . Such management is inspired by Keynesian macroeconomics , and Keynesian economics is sometimes referred to as demand-side economics . Demand management has
21720-513: The endangered Bengal tiger and the Ganges river dolphin . Critically endangered species include the gharial , a crocodilian ; the great Indian bustard ; and the Indian white-rumped vulture , which has become nearly extinct by having ingested the carrion of diclofenac -treated cattle. Before they were extensively used for agriculture and cleared for human settlement, the thorn forests of Punjab were mingled at intervals with open grasslands that were grazed by large herds of blackbuck preyed on by
21901-406: The features of the service and the benefits offered. Under such circumstances, the marketing unit of a service firm has to understand the psyche of the potential buyers and find out the prime reason for the rejection of the service. For example: if passengers refuse a bus conductor's call to board the bus. The service firm has to come up with an appropriate strategy to remove the misunderstandings of
22082-416: The firm's services. Service differentiation is one of the popular strategies used to compete in a no demand situation in the market. Latent demand: At any given time it is impossible to have a set of services that offer total satisfaction to all the needs and wants of society. In the market there exists a gap between desirable and the available. There is always a search on for better and newer offers to fill
22263-431: The gap between desirability and availability. Seasonal demand: Some services do not have a year-round demand, and might be required only at a certain period of time. Seasons all over the world are diverse. Seasonal demands create many problems for service organizations, such as idling the capacity, fixed cost and excess expenditure on marketing and promotions. Strategies used by firms to overcome this may include nurturing
22444-405: The gap between desirability and availability. Latent demand is a phenomenon of any economy at any given time, it should be looked upon as a business opportunity by service firms and they should orient themselves to identify and exploit such opportunities at the right time. For example, a passenger traveling in an ordinary bus dreams of traveling in a luxury bus. Therefore, latent demand is nothing but
22625-538: The good being advertised. The elasticity of demand follows the law of demand and its definition. However, there are goods and specific situations that defy the law of demand. Generally, the amount demanded of a good increases with a decrease in price of the good and vice versa. In some cases this may not be true. There are certain goods which do not follow the law of demand. These include Giffen goods , Veblen goods , basic or necessary goods and expectations of future price changes. Further exception and details are given in
22806-473: The good is a normal good, and a negative measurement suggests an inferior good. The Income elasticity of demand effectively represents a consumers idea as to whether a good is a luxury or a necessity. Advertising elasticity of demand measures the effectiveness of an advertising campaign as to generate new sales. To calculate the Advertising elasticity of demand, the percentage change in quantity demanded
22987-528: The government also influences the demand for commodities. if the government imposes taxes on various commodities in the form of VAT, excise duties, etc., the prices of these commodities will increase, As a result, demand for these commodities will fall. A demand function states the relationship between the demand for a product and its various determinants. It is a shorthand way of saying that quantity demanded depends on various determinants. It gives functional relationship (i.e., cause and effect relationship) between
23168-408: The income effect is a measure of a consumer's existing demand for the good, meaning that if a consumer spends a large amount of his income on an inferior good, then a price increase could cause the income effect to dominate the substitution effect. This leads to a positive partial derivative of the good's demand with regards to its price, which violates the law of demand. If an increase in the price of
23349-545: The increase in price. Examples of Veblen goods are mostly luxurious items such as diamond, gold, precious stones, world-famous paintings, antiques etc. Veblen goods appear to go against the law of demand because of their exclusivity appeal, in the sense that if a price of a luxurious and expensive product is increased, it may attract the status-conscious group more, since it will be further out of reach for an average consumer. Thorstein Veblen referred to this sort of consumption as
23530-415: The industry and that the demand elasticity for industry is -1.0 and the price elasticity of supply is 3. Then That is the firm PED is 317 times as elastic as the market PED. If a firm raised its price "by one tenth of one percent demand would drop by nearly one third." if the firm raised its price by three tenths of one percent the quantity demanded would drop by nearly 100%. Three tenths of one percent marks
23711-458: The inverse demand function by Q to derive the total revenue function: TR = (120 - .5Q) × Q = 120Q - 0.5Q². The marginal revenue function is the first derivative of the total revenue function; here MR = 120 - Q. Note that the MR function has the same y-intercept as the inverse demand function in this linear example; the x-intercept of the MR function is one-half the value of that of the demand function, and
23892-494: The largest single party, was able to form a minority government led by P. V. Narasimha Rao . A two-year period of political turmoil followed the general election of 1996 . Several short-lived alliances shared power at the centre. The BJP formed a government briefly in 1996; it was followed by two comparatively long-lasting United Front coalitions, which depended on external support. There were two prime ministers during this period; H.D. Deve Gowda and I.K. Gujral . In 1998 ,
24073-723: The law of demand is clearly violated, as we have both p i ′ − p i > 0 {\textstyle p_{i}'-p_{i}>0} (as price increased) and q i ′ − q i > 0 {\textstyle q_{i}'-q_{i}>0} (as we consider a Giffen good), so that ( p ′ − p ) ( x ′ − x ) = ( p i ′ − p i ) ( x i ′ − x i ) > 0 {\textstyle (p'-p)(x'-x)=(p_{i}'-p_{i})(x_{i}'-x_{i})>0} . On
24254-406: The law of demand such as Giffen goods and perfectly inelastic goods. Economist Alfred Marshall provided the graphical illustration of the law of demand. This graphical illustration is still used today to define and explain a variety of other concepts and theories in economics. A simple explanation of the law of demand is that all else equal, at a higher price, consumer will demand less quantity of
24435-473: The law of demand typically suit the Giffen commodities and Veblen goods which is further explained below. The four main types of elasticity of demand are price elasticity of demand, cross elasticity of demand, income elasticity of demand, and advertising elasticity of demand. The famous law of demand was first stated by Charles Davenant (1656-1714) in his essay, "Probable Methods of Making People Gainers in
24616-425: The life of its exemplar, Mahavira . Buddhism , based on the teachings of Gautama Buddha , attracted followers from all social classes excepting the middle class; chronicling the life of the Buddha was central to the beginnings of recorded history in India. In an age of increasing urban wealth, both religions held up renunciation as an ideal, and both established long-lasting monastic traditions. Politically, by
24797-526: The loose-knit Maurya and Gupta Empires based in the Ganges Basin . Their collective era was suffused with wide-ranging creativity, but also marked by the declining status of women, and the incorporation of untouchability into an organised system of belief. In South India , the Middle kingdoms exported Dravidian-languages scripts and religious cultures to the kingdoms of Southeast Asia . In
24978-471: The majority of India's rainfall. Four major climatic groupings predominate in India: tropical wet , tropical dry , subtropical humid , and montane . Temperatures in India have risen by 0.7 °C (1.3 °F) between 1901 and 2018. Climate change in India is often thought to be the cause. The retreat of Himalayan glaciers has adversely affected the flow rate of the major Himalayan rivers, including
25159-446: The market. Service organizations need to constantly study changing demands related to their service offerings over various time periods. They have to develop a system to chart these demand fluctuations, which helps them in predicting the demand cycles. Demands do fluctuate randomly; therefore, they should be followed on a daily, weekly or monthly basis. E. F. Schumacher challenges the prevailing economic assumption that fulfilling demand
25340-642: The monetary income of the consumer I {\displaystyle I} , the prices of other goods P y {\displaystyle P_{y}} , and the taste of the consumer T {\displaystyle T} . Another common way to express the law of demand without imposing a functional form is the following: This formula states that, for all possible prices p' and p, and corresponding demands x' and x, prices and demand must move in opposite directions, i.e. as price increases, demand must decrease and vice versa. Note that demands are demand bundles , not individual demands. Demand for
25521-420: The nation to liberalise its economy ; since then, it has moved increasingly towards a free-market system by emphasising both foreign trade and direct investment inflows. India has been a member of World Trade Organization since 1 January 1995. The 522-million-worker Indian labour force is the world's second largest , as of 2017 . The service sector makes up 55.6% of GDP, the industrial sector 26.3% and
25702-445: The newly canalled Punjab, led to increased food production for internal consumption. The railway network provided critical famine relief, notably reduced the cost of moving goods, and helped nascent Indian-owned industry. After World War I , in which approximately one million Indians served , a new period began. It was marked by British reforms but also repressive legislation , by more strident Indian calls for self-rule, and by
25883-682: The northwest. Its evidence today is found in the hymns of the Rigveda . Preserved by an oral tradition that was resolutely vigilant , the Rigveda records the dawning of Hinduism in India. The Dravidian languages of India were supplanted in the northern and western regions. By 400 BCE , stratification and exclusion by caste had emerged within Hinduism, and Buddhism and Jainism had arisen, proclaiming social orders unlinked to heredity. Early political consolidations gave rise to
26064-405: The one hand, demand refers to the demand curve . Changes in supply are depicted graphically by a shift in the supply curve to the left or right. Changes in the demand curve are usually caused by 5 major factors, namely: number of buyers, consumer income, tastes or preferences, price of related goods and future expectations. On the other hand, quantity demanded refers to a specific point located on
26245-434: The other hand, if the income is evenly distributed, there will be less demand for luxury goods and more demand for essential goods (necessities). Size and Composition of population : Market demand for a commodity depends on the size and composition of the population. The population size of a country determines the number of consumers. The larger the population, the larger is likely to be the number of consumers. An increase in
26426-472: The other hand, lower mortgage rate leads to a higher willingness to buy at all prices, and eventually shifting the demand curve to the right. Consumers will now buy more, even though the price has not changed at all. Such variation in demand can be explained by demand elasticity. The elasticity of demand refers to the sensitivity of a goods demand as compared to the fluctuation of other economic factors, such as price, income, etc. The law of demand explains that
26607-476: The percentage change in price of good B. The Cross elasticity of demand, also commonly referred to as the Cross-price elasticity of demand, allows companies to establish competitive prices against substitute goods and complementary goods . The metric figure produced by the equation thus determines the strength of both the relationship and competition between the two goods. Income elasticity of demand
26788-403: The potential buyers. A strategy needs to be designed to transform the negative demand into a positive demand. No demand: If people are unaware, have insufficient information about a service or due to the consumer's indifference this type of a demand situation could occur. The marketing unit of the firm should focus on promotional campaigns and communicating reasons for potential customers to use
26969-415: The price has no effect on the quantity demanded. The demand for the good remains the same regardless of how low or high the price. Goods with (nearly) perfectly inelastic demand are typically goods with no substitutes. For instance, insulin is nearly perfectly inelastic. Diabetics need insulin to survive so a change in price would not effect the quantity demanded. Insulin is not perfectly inelastic, however, as
27150-408: The price rose it had a large impact on income. People responded by cutting out on luxury goods such as meat and vegetables, and instead bought more potatoes. Therefore, as the price of potatoes increased, so did the quantity demanded. This results in an upward sloping demand curve contrary to the fundamental law of demand. Giffen goods violate the law of demand due to the income effect dominating
27331-449: The proportion of income spent on the good, the nature of the good (whether it's a necessity or a luxury), and the time horizon under consideration. The cross elasticity of demand is an economic concept that measures the relative change in demand of a good when another good varies in price. The formula to solve for the coefficient of cross elasticity of demand is calculated by dividing the percentage change in quantity demanded of good A by
27512-546: The proportion of the area of a forest covered by its tree canopy . Very dense forest , whose canopy density is greater than 70%, occupies 3.02% of India's land area. It predominates in the tropical moist forest of the Andaman Islands , the Western Ghats , and Northeast India . Moderately dense forest , whose canopy density is between 40% and 70%, occupies 9.39% of India's land area. It predominates in
27693-447: The purchase of goods that do not exhibit additional utility or functionality but offer status and reveal socioeconomic position. In simple words, these goods are not bought for their satisfaction but for their "snob appeal" or "ostentation". Accordingly, all these factors also lead to an upward sloping demand curve for Veblen goods along a certain price range. Gary S. Becker and Kevin M. Murphy analysed Veblen goods. Their analysis of
27874-450: The region highly diverse, second only to Africa in human genetic diversity . Settled life emerged on the subcontinent in the western margins of the Indus river basin 9,000 years ago, evolving gradually into the Indus Valley Civilisation of the third millennium BCE. By at least 1200 BCE , an archaic form of Sanskrit , an Indo-European language , had diffused into India from
28055-408: The relationship between Demand and Price is directly inverse. However, the demand for some goods are more receptive to a change in price than others. There are four major elasticities of demand, these being the price elasticity of demand, income elasticity of demand, cross elasticity of demand, and advertising elasticity of demand. The variation in demand with regards to a change in price is known as
28236-548: The seas, greater resources, and more advanced military training and technology led it to increasingly assert its military strength and caused it to become attractive to a portion of the Indian elite; these factors were crucial in allowing the company to gain control over the Bengal region by 1765 and sideline the other European companies. Its further access to the riches of Bengal and the subsequent increased strength and size of its army enabled it to annex or subdue most of India by
28417-522: The sections below: Initially proposed by Sir Robert Giffen , economists disagree on the existence of Giffen goods in the market. A Giffen good describes an inferior good that, as the price increases, demand for the product increases. As an example, during the Great Famine of Ireland of the 19th century, potatoes were considered a Giffen good. Potatoes were the largest staple in the Irish diet, so as
28598-412: The service consumption habit of customers so as to make the demand unseasonal, or recognizing markets elsewhere in the world during the off-season period. Hence, this presents an opportunity to target different markets with the appropriate season in different parts of the world. For example, the need for Christmas cards comes around once a year. Demand patterns need to be studied in different segments of
28779-463: The share of external trade in India's GDP stood at 24%, up from 6% in 1985. In 2008, India's share of world trade was 1.7%; In 2021, India was the world's ninth-largest importer and the sixteenth-largest exporter . Major exports include petroleum products, textile goods, jewellery, software, engineering goods, chemicals, and manufactured leather goods. Major imports include crude oil, machinery, gems, fertiliser, and chemicals. Between 2001 and 2011,
28960-509: The size of population will increase the demand for a commodity by increasing the number of consumers and, vice versa. Climatic factors : Demand for different goods depends on the climatic factors because different goods are needed for different climates. For instance, the demand for ice, fans, air conditioners, cold drinks, cotton clothes, etc increases in summer. Likewise, in winter, the demand for heaters, blowers, hot drinks, woollen cloths, etc increases. Government Policy : Economic policy of
29141-531: The slope of the MR function is twice that of the inverse demand function. This relationship holds true for all linear demand equations. The importance of being able to quickly calculate MR is that the profit-maximizing condition for firms regardless of market structure is to produce where marginal revenue equals marginal cost (MC). To derive MC the first derivative of the total cost function is taken. For example, assume cost, C, equals 420 + 60Q + Q. Then MC = 60 + 2Q. Equating MR to MC and solving for Q gives Q = 20. So 20
29322-576: The southern supercontinent Gondwana , began a north-eastward drift caused by seafloor spreading to its south-west, and later, south and south-east. Simultaneously, the vast Tethyan oceanic crust , to its northeast, began to subduct under the Eurasian Plate . These dual processes, driven by convection in the Earth's mantle , both created the Indian Ocean and caused the Indian continental crust eventually to under-thrust Eurasia and to uplift
29503-416: The subcontinent from the north-west. The caste system , which created a hierarchy of priests, warriors, and free peasants, but which excluded indigenous peoples by labelling their occupations impure, arose during this period. On the Deccan Plateau , archaeological evidence from this period suggests the existence of a chiefdom stage of political organisation. In South India , a progression to sedentary life
29684-526: The subcontinent transitioned from the Chalcolithic cultures to the Iron Age ones. The Vedas , the oldest scriptures associated with Hinduism , were composed during this period, and historians have analysed these to posit a Vedic culture in the Punjab region and the upper Gangetic Plain . Most historians also consider this period to have encompassed several waves of Indo-Aryan migration into
29865-441: The subcontinent, thereby creating a syncretic Indo-Islamic culture in the north. The sultanate's raiding and weakening of the regional kingdoms of South India paved the way for the indigenous Vijayanagara Empire . Embracing a strong Shaivite tradition and building upon the military technology of the sultanate, the empire came to control much of peninsular India, and was to influence South Indian society for long afterwards. In
30046-414: The support of left-leaning parties and MPs who opposed the BJP. The UPA returned to power in the 2009 general election with increased numbers, and it no longer required external support from India's communist parties . That year, Manmohan Singh became the first prime minister since Jawaharlal Nehru in 1957 and 1962 to be re-elected to a consecutive five-year term. In the 2014 general election ,
30227-677: The time and was not a party to the Nuclear Non-Proliferation Treaty, it received waivers from the International Atomic Energy Agency and the Nuclear Suppliers Group , ending earlier restrictions on India's nuclear technology and commerce. As a consequence, India became the sixth de facto nuclear weapons state. India subsequently signed co-operation agreements involving civilian nuclear energy with Russia, France,
30408-518: The two nations have gone to war four times: in 1947 , 1965 , 1971 , and 1999 . Three of these wars were fought over the disputed territory of Kashmir , while the third, the 1971 war, followed from India's support for the independence of Bangladesh . In the late 1980s, the Indian military twice intervened abroad at the invitation of the host country: a peace-keeping operation in Sri Lanka between 1987 and 1990; and an armed intervention to prevent
30589-639: The union territories of Jammu and Kashmir , Puducherry and the National Capital Territory of Delhi , have elected legislatures and governments following the Westminster system of governance. The remaining five union territories are directly ruled by the central government through appointed administrators. In 1956, under the States Reorganisation Act , states were reorganised on a linguistic basis. There are over
30770-416: The variable P appearing in the numerator of the elasticity formula is zero. At one point on a linear demand curve, demand is unitary elastic: an elasticity of one. For higher prices, the elasticity is greater than 1 in magnitude: demand is said to be elastic because percentage quantity changes are bigger than price changes. For prices below the point of unit elasticity, the elasticity is less than 1 and demand
30951-495: The western part of the Indo-Gangetic plain, now turned into rich agricultural land by irrigation, its features no longer visible. Among the Indian subcontinent's notable indigenous trees are the astringent Azadirachta indica , or neem , which is widely used in rural Indian herbal medicine , and the luxuriant Ficus religiosa , or peepul , which is displayed on the ancient seals of Mohenjo-daro , and under which
31132-444: The world in nominal per capita income and 125th in per capita income adjusted for purchasing power parity (PPP)—the vast majority of Indians fall into the low-income group. Until 1991, all Indian governments followed protectionist policies that were influenced by socialist economics. Widespread state intervention and regulation largely walled the economy off from the outside world. An acute balance of payments crisis in 1991 forced
31313-437: The world's most populous democracy since the time of its independence in 1947. It is a pluralistic , multilingual and multi-ethnic society . India's nominal per capita income increased from US$ 64 annually in 1951 to US$ 2,601 in 2022, and its literacy rate from 16.6% to 74%. During the same time, its population grew from 361 million to almost 1.4 billion, and India became the most populous country in 2023. From being
31494-537: The world's newer nations; however, in spite of its recent economic successes, freedom from want for its disadvantaged population remains a goal yet to be achieved. India accounts for the bulk of the Indian subcontinent, lying atop the Indian tectonic plate , a part of the Indo-Australian Plate . India's defining geological processes began 75 million years ago when the Indian Plate, then part of
31675-457: Was amended in 1971 to "a sovereign, socialist , secular , democratic republic". India's form of government, traditionally described as "quasi-federal" with a strong centre and weak states, has grown increasingly federal since the late 1990s as a result of political, economic, and social changes. The Government of India comprises three branches: India is a federal union comprising 28 states and 8 union territories . All states, as well as
31856-426: Was nominally worth $ 3.94 trillion; it was the fifth-largest economy by market exchange rates and is, at around $ 15.0 trillion, the third-largest by purchasing power parity (PPP). With its average annual GDP growth rate of 5.8% over the past two decades, and reaching 6.1% during 2011–2012, India is one of the world's fastest-growing economies . However, due to its low GDP per capita—which ranks 136th in
32037-516: Was noted for nonviolent resistance and became the major factor in ending British rule. In 1947, the British Indian Empire was partitioned into two independent dominions , a Hindu-majority dominion of India and a Muslim-majority dominion of Pakistan , amid large-scale loss of life and an unprecedented migration. India has been a federal republic since 1950, governed through a democratic parliamentary system , and has been
32218-528: Was pegged at US$ 70.12 billion for fiscal year 2022–23 and, increased 9.8% than previous fiscal year. India is the world's second-largest arms importer; between 2016 and 2020, it accounted for 9.5% of the total global arms imports. Much of the military expenditure was focused on defence against Pakistan and countering growing Chinese influence in the Indian Ocean. In May 2017, the Indian Space Research Organisation launched
32399-532: Was succeeded, after his own unexpected death in 1966, by Nehru's daughter Indira Gandhi , who went on to lead the Congress to election victories in 1967 and 1971 . Following public discontent with the state of emergency she declared in 1975, the Congress was voted out of power in 1977 ; the then-new Janata Party , which had opposed the emergency, was voted in. Its government lasted just over two years. There were two prime ministers during this period; Morarji Desai and Charan Singh . Voted back into power in 1980,
32580-411: Was the world's fifth largest . Driven by growth, India's nominal GDP per capita increased steadily from US$ 308 in 1991, when economic liberalisation began, to US$ 1,380 in 2010, to an estimated US$ 2,731 in 2024. It is expected to grow to US$ 3,264 by 2026. However, it has remained lower than those of other Asian developing countries such as Indonesia, Malaysia, Philippines, Sri Lanka, and Thailand, and
32761-912: Was used widely since the era of the Mughal Empire . The meaning of Hindustan has varied, referring to a region encompassing the northern Indian subcontinent (present-day northern India and Pakistan ) or to India in its near entirety. By 55,000 years ago, the first modern humans, or Homo sapiens , had arrived on the Indian subcontinent from Africa, where they had earlier evolved. The earliest known modern human remains in South Asia date to about 30,000 years ago. After 6500 BCE , evidence for domestication of food crops and animals, construction of permanent structures, and storage of agricultural surplus appeared in Mehrgarh and other sites in Balochistan, Pakistan . These gradually developed into
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