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InterviewSolution
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What is meant by ex-ante demand and ex-post demand? |
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Answer» Ex-ante and Ex post Demand: Ex ante demand refers to the number of goods that consumers want to or willing to buy during a particular time period. It is the planned or desired amount of demand. Ex post demand, on the other hand, refers to the amount of the goods that the consumers actually purchase during a specific period. It is the number of goods actually bought. The number of goods actually bought is not the same as the amount that the consumers want (desire) to purchase. If the commodity is not available in adequate quantity, the quantity actually purchased (expost demand) will be less than the quantity that the consumers desire to purchase (ex-ante demand). Thus, consumers may end up buying more, or lesser quantity of goods that they had planned to buy. |
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