NCERT| RBSE | CBSE| Class12 |अर्थशास्त्र| उपभोक्ता के व्यवहार का सिद्वान्त। पाठ्यपुस्तक के प्रश्न-2

Summary

In this video, the second chapter on the Theory of Consumer Behavior is explored, focusing on solving textbook questions related to demand functions and market demand. The script covers the calculation of individual and market demand, with examples of different consumers and price changes. It also delves into concepts like normal goods, inferior goods, substitute items, complementary goods, and the price elasticity of demand. The video wraps up with explanations of key economic terms, providing a comprehensive overview of consumer demand and its dynamics, preparing the viewer for the next chapter on production and cost.

Takeaways

• 😀 The video discusses the theory of consumer behavior, focusing on demand functions and how to calculate market demand from individual demand functions.
• 😀 It explains the linear demand functions of two consumers, where the first consumer's demand is represented by d1(p) = 20 - p and the second consumer's demand by d2(p) = 30 - 2p.
• 😀 The concept of market demand is introduced, where the market demand function is obtained by summing the individual demands of the consumers. The resulting market demand function is 50 - 3p.
• 😀 The video illustrates how to handle a situation with 20 consumers who share the same demand function (ZB = 10 - 3p), where the market demand is obtained by multiplying the individual demand by 20.
• 😀 A distinction is made between general goods, normal goods, and inferior goods. Normal goods see an increase in demand as income increases, while inferior goods see a decrease in demand with higher income.
• 😀 The script also touches on substitutes and complementary goods. Substitutes are goods that can replace each other, like tea and coffee, while complementary goods are those that are used together, such as petrol and cars.
• 😀 The lock of demand is defined as the percentage change in demand relative to the percentage change in price. The formula for calculating the price lock of demand is explained.
• 😀 A practical example is provided where the lock of demand is calculated for an item with a demand of 25 units at ₹4 and a price increase to ₹5, resulting in a demand decrease and a price lock calculation.
• 😀 The concept of elasticity is introduced. If the price of an item decreases and demand increases, the item is considered elastic, indicating that the demand responds significantly to price changes.
• 😀 The video concludes with a reminder to students to thoroughly review the chapter, study the diagrams, and take notes for better understanding before moving on to the next chapter on production and cost.

Q & A

What is the demand function of the first consumer in the market?

The demand function of the first consumer is d1(p) = 20 - p, where the demand is 20 when the price is 0, and the demand becomes zero when the price exceeds 20.

How does the second consumer's demand function work?

The demand function of the second consumer is d2(p) = 30 - 2p, applicable when the price is less than or equal to 15. When the price exceeds 15, the demand becomes zero.

How do you calculate the market demand function with two consumers?

To find the market demand function, we sum the individual demand functions of both consumers. For the two consumers with demand functions d1(p) = 20 - p and d2(p) = 30 - 2p, the market demand function is given by D(p) = 50 - 3p, valid when the price is less than or equal to 50/3. If the price exceeds 50/3, the market demand becomes zero.

What happens when the price exceeds the threshold in the market demand function?

When the price exceeds the threshold (such as 20 for the first consumer or 50/3 for the market demand), the demand becomes zero for both consumers and the market as a whole.

What is the market demand function for 20 consumers with identical demand functions?

If 20 consumers each have a demand function d(p) = 10 - 3p, the market demand function is D(p) = 200 - 60p, valid for prices less than or equal to 10/3. If the price exceeds 10/3, the market demand becomes zero.

How does the demand curve change when multiple consumers share the same demand function?

When multiple consumers share the same demand function, the market demand curve is calculated by multiplying the individual demand function by the number of consumers. For example, with 20 consumers and the demand function d(p) = 10 - 3p, the market demand is D(p) = 200 - 60p.

What are normal goods and inferior goods, and how do they relate to income?

Normal goods are those for which demand increases as income rises, while inferior goods are those for which demand decreases as income rises. Examples of normal goods are luxury items, while inferior goods might include low-cost staple foods like coarse grains.

What are substitute goods and how do they work in the market?

Substitute goods are items that can replace one another to satisfy a similar need. For example, if the price of tea increases, people might switch to coffee as a substitute. Other examples include Nokia and Samsung mobiles or different mobile networks like Vodafone and Airtel.

What are complementary goods and how do they affect each other?

Complementary goods are products that are used together, so an increase in the demand for one leads to an increase in the demand for the other. Examples include samosas and chutney, mobile phones and SIM cards, or electricity and electrical equipment.

How do you calculate the price elasticity of demand (PED)?

The price elasticity of demand (PED) is calculated using the formula: PED = (percentage change in demand) / (percentage change in price). It measures how much demand responds to changes in price.