Answer to Question #95695 in Microeconomics for SHAHADAT HOSSEN

Question

What is the difference between demand and the quantity demanded? “Remaining all other
things unchanged, if the price of the commodity rises, quantity demanded for the
commodity decreases; however, the demand for the commodity remains unchanged” – do
you agree with the statement. Justify your answer with examples. Show graphically the
impact of the recent spread of anthrax in Bangladesh on the demand for beef and also on
the demand for chicken in the country. Use graphs.

Answer 1

Demand is the quantity of goods that can be purchased subject to the formation of a specific price. While the required quantity is the total amount of goods that can be consumed, provided that each consumer has equal access to a particular product. If the price of a product rises, then its consumption decreases, and demand itself, as a market category, also declines. But at the same time, the desire to buy, that is, the required amount, remains unchanged.

For example, on the first day of the presentation of the new generation of the X phone, a 20% discount was applied. Starting the next day, the price became 100%. Thus, part of the demand was satisfied on the first day, at the time of the start of sales of the second day, the required quantity remained equal to the total of the first day, and demand decreased due to rising prices. In the case of anthrax in Bangladesh, the demand and consumption of this product will definitely decrease, even if the price is significantly reduced. While the price of chicken will be higher, how much chicken is safe, in this case, a substitute product