DEMAND - LAW OF DEMAND

LAW OF DEMAND - CASE STUDY / INFORMATION

GUJARAT - Among the many environmental problems faced by India is how to dispose the vast amounts of garbage generated each day by households and businesses. However, one small community in Gujarat used THE LAW OF DEMAND to solve this garbage collection problem. Residents of this city paid an annual fixed fee of Rs.120 per resident for a daily average of 2.2kgs.

 The city municipality began charging by the bag for garbage collection. The city required all trash to placed in special bags sold by municipality. For example, 40kgs was sold for Rs.10

HAVE YOU EVER WONDERED ?

What is the use of THE LAW OF DEMAND ?

The Law Of Demand is used by the citizens to ensure that the government follows their demand and supply what the citizens want.

Why does THE LAW OF DEMAND comes in handy?

The Law Of Demand comes in handy for the citizens because the government follows the higher demand and in this case, the demand for garbage collection with annual fees is highest. Therefore, this demand is followed.

What symbol represents THE LAW OF DEMAND ?

The negative symbol ( - ). This is because the relationship between price and quantity is negative ( - ).

THE DEMAND CURVE

Resouces: http://www.investopedia.com/terms/l/lawofdemand.asp

          http://www.investopedia.com/university/economics/economics3.asp