Theories of revealed preference relate it to the individual consumer's preference, while its price elasticity measures how much more or less of a good the consumer will purchase given a decline or a rise in price.
Adam Smith divided an elementary representation of it into effective and absolute classes, of which effective was the more important for determining the market price of a good in relation to the cost of producing it. Theories of revealed preference relate it to the individual consumer's preference, while its price elasticity measures how much more or less of a good the consumer will purchase given a decline or a rise in price. FTP name this relation used with supply to determine the equilibrium price and quantity of a good in a market.
Adam Smith divided an elementary representation of it into effective and absolute classes, of which effective was the more important for determining the market price of a good in relation to the cost of producing it.
Demand