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    Demand

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    Chitraksh Mahajan
    This document discusses demand analysis and the key concepts related to demand. It defines demand as the amount of a good that consumers will purchase at a given price and time. It identifies the main determinants of demand as price, income, prices of related goods, tastes and preferences, advertising, expectations, economic growth, and population. It also discusses demand schedules, demand curves, the law of demand, demand functions, exceptions to the law of demand, movement along the demand curve, and shifts in the demand curve.

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    Demand

    Uploaded by

    Chitraksh Mahajan
    27 views17 pages
    This document discusses demand analysis and the key concepts related to demand. It defines demand as the amount of a good that consumers will purchase at a given price and time. It identifies the main determinants of demand as price, income, prices of related goods, tastes and preferences, advertising, expectations, economic growth, and population. It also discusses demand schedules, demand curves, the law of demand, demand functions, exceptions to the law of demand, movement along the demand curve, and shifts in the demand curve.

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    This document discusses demand analysis and the key concepts related to demand. It defines demand as the amount of a good that consumers will purchase at a given price and time. It identifies the main determinants of demand as price, income, prices of related goods, tastes and preferences, advertising, expectations, economic growth, and population. It also discusses demand schedules, demand curves, the law of demand, demand functions, exceptions to the law of demand, movement along the demand curve, and shifts in the demand curve.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    27 views17 pages

    Demand

    Uploaded by

    Chitraksh Mahajan
    This document discusses demand analysis and the key concepts related to demand. It defines demand as the amount of a good that consumers will purchase at a given price and time. It identifies the main determinants of demand as price, income, prices of related goods, tastes and preferences, advertising, expectations, economic growth, and population. It also discusses demand schedules, demand curves, the law of demand, demand functions, exceptions to the law of demand, movement along the demand curve, and shifts in the demand curve.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    Demand Analysis

    Meaning of Demand
    • Desire is a wish. For e.g a beggar desires a big house.
    • Want is an effective desire which is backed by the ability and
    willingness to buy the product. E.g. a doctor wants a car.
    • Demand refers to the amount of the goods which the consumer
    will purchase at a given price and at a give time. For. eg. A
    milkman buys 2000 litres of milk on every Sunday at Rs. 50 Per
    litre.

    3
    Types of Demand

    -Direct and derived demands


    -Individual and market demand
    -Complementary and competing

    4
    DETERMINANTS OF DEMAND
    • Price of Product
    • Income of Consumer
    • Price of Related Good
    • Tastes and Preferences
    • Advertising
    • Consumer’s expectation of future Income and Price
    • Growth of Economy
    • Seasonal conditions
    • Population
    5
    Demand Schedule
    • It shows the price and output relationship.
    • Tabular representation of price and demand.

    6
    DEMAND CURVE
    • The geometrical representation of demand schedule is called
    the demand curve.

    7
    Market Demand Schedule

    8
    Derivation of Market Demand Curve

    9
    LAW OF DEMAND
    • As the price of a good rises, quantity demanded of that good
    falls.
    • As the price of a good falls, quantity demanded of that good
    rises.
    • Ceteris paribus.
    • ..\Downloads\Law of Demand.mp4

    10
    UPES – The Nation Builders University

    Demand Function

    When we express the relationship between demand and its


    determinant
    mathematically, the relationship is known as demand function.

    The demand for product X can be written in functional form as-

    Dx= f (Px, Y, Po, T, A, Ef, N )

    Centre for
    Continuing Education 11
    Why does the demand curve slope downwards?

    • Law of Diminishing Marginal Utility


    • Income Effect
    • Substitution Effect
    • Several Uses of a commodity
    • No. of consumers

    12
    Exceptions to the law of demand
    • Inferior Goods
    • Snob Appeal
    • Demonstration Effect
    • Future Expectation of Prices
    • Insignificant proportion of income spent
    • Goods with no Substitutes

    13
    Change in quantity demanded or Movement along the
    demand curve
    Movement along the demand curve is due to the change in price of the commodity. When the price rises,
    Quantity demanded falls and it is known as Contraction of Demand. When the price falls, quantity
    demanded
    Rises and it is known as Extension of Demand.

    14
    Change In Demand
    • A shift of the entire demand curve to a new position is called
    change in demand.
    • Changes in non-price determinants of demand. There is
    increase or decrease in Demand i.e rightward or leftward shift.

    15
    16

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