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    Managerial Economics

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    Hindu anumula
    This document discusses demand analysis in managerial economics. It defines demand and outlines the importance and objectives of demand analysis, which include demand forecasting, production planning, and inventory control. The key determinants of demand are identified as price, income, tastes, prices of related goods, advertising, and other factors. Finally, the document explains individual and market demand functions, showing how quantity demanded relates to various factors like price, income, and tastes.

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    Managerial Economics

    Uploaded by

    Hindu anumula
    47 views10 pages
    This document discusses demand analysis in managerial economics. It defines demand and outlines the importance and objectives of demand analysis, which include demand forecasting, production planning, and inventory control. The key determinants of demand are identified as price, income, tastes, prices of related goods, advertising, and other factors. Finally, the document explains individual and market demand functions, showing how quantity demanded relates to various factors like price, income, and tastes.

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    MANAGERIAL ECONOMICS PPT

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    This document discusses demand analysis in managerial economics. It defines demand and outlines the importance and objectives of demand analysis, which include demand forecasting, production planning, and inventory control. The key determinants of demand are identified as price, income, tastes, prices of related goods, advertising, and other factors. Finally, the document explains individual and market demand functions, showing how quantity demanded relates to various factors like price, income, and tastes.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    47 views10 pages

    Managerial Economics

    Uploaded by

    Hindu anumula
    This document discusses demand analysis in managerial economics. It defines demand and outlines the importance and objectives of demand analysis, which include demand forecasting, production planning, and inventory control. The key determinants of demand are identified as price, income, tastes, prices of related goods, advertising, and other factors. Finally, the document explains individual and market demand functions, showing how quantity demanded relates to various factors like price, income, and tastes.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    MANAGERIAL ECONOMICS

    Topic : Demand Analysis, significance and demand functions


    Names of Presenters:

    S.NO NAME HT. NO

    1. A. Hindu 21564C1022

    2. P. Yashaswi 21564C1115

    3. V. Umamaheshwar 21564C1025

    4. E. Sai Ram 21564C1007

    5. Ch. Naveen 21564C1109


    INTRODUCTION

    • Demand : “The demand for a commodity refers to the desire to buy a commodity backed
    with sufficient purchasing power and the willingness to spend.”

    • According to Prof. Hibdon, “Demand means the various quantities of goods


    that would be purchased per time period at different prices in a given market.”

    • Demand Analysis: The demand analysis is a process whereby the management makes
    decisions with respect to the production, cost allocation, advertising, inventory holding,
    pricing etc.
    Features of Demand

    1. Desires and Demand

    2. Demand and Price

    3. Point of Time

    4. Utility
    OBJECTIVES OF DEMAND ANALYSIS

    1. Demand Forecasting

    2. Production Planning

    3. Sales Forecasting

    4. Control of Business

    5. Inventory Control

    6. Growth and Long Term


    Investment Programs
    7. Economic Planning and Policy
    Making
    DETERMINANTS OF DEMAND

    1. Price of the Commodity


    2. Income of the Consumer
    3. Tastes and Preferences of the Consumer
    4. Prices of Related Goods
    5. Advertisement and Sales Propaganda and
    6. Other determinants
    SIGNIFICANCE OF DEMAND ANALYSIS

    • The analysis of demand theory is very much important in the business decision.
    • Demand analysis helps forecast the market which is of importance in modern business
    activities.
    • The importance of demand analysis is as follows :
    a. Pricing Policy
    b. Investment Policy
    c. Market Forecast
    DEMAND FUNCTIONS

     The demand function is an algebraic expression of the relationship between demand for a
    commodity and its various determinants that affect this quantity.
     There are two types of demand functions.
    1. Individual Demand Function
    2. Market Demand Function
    • Individual Demand Function : An individual’s demand function refers to the quantities of a
    commodity demanded at various prices, given his income, prices of related goods and
    tastes. It is expressed as :
    D=f(P)
    • Market Demand Function : Market demand function refers to the total demand for a good or
    service of all the buyers taken together. The market demand function may be expressed
    mathematically as :
    Dx = f(Px , Pr, M, T, A, U)
    Where,
    Dx = quantity demanded for commodity x
    f = functional relation
    Px = price of commodity x
    Pr = price of related commodities
    M = the money income of the consumer
    T = the tastes and preferences of the consumer
    A = the advertisement effect
    U = unknown variables

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