ankur ppt demand

DEMAND

DEMAND

PRESENTED BY:-ANKUR KUMARMCOM-1

DEMAND DEFINITATION DEMAND IS AN EFFECTIVE DESIRE BACKED BY :- ABILITY TO PAYWILLINGNESS TO BUY AT A GIVEN PRICEGIVEN TIME FOR A COMMODITY

DEMAND SCHEDULE:- THE TABULAR STATEMENT SHOWING THE PRICE - DEMAND RELATIONSHIP IS KNOWN AS DEMAND SCHEDULE. THERE ARE 2 TYPES OF DEMAND SCHEDULES:-INDIVIUAL DEMAND SCHEDULE:- DEMAND BY A HOUSEHOLD FOR A COMMODITY AT DIFFERENT PRICES.MARKET DEMAND SCHEDULE:- DEMAND OF THE WHOLE MARKET FOR A COMMODITY AT DIFFERENT PRICES.

DEMAND CURVE WHEN A DEMAND SCHEDULE IS DEPICTED BY THE GRAPH , IT BECOMES DEMAND CURVE. THERE ARE 2 TYPES OF DEMAND CURVES:- INDIVIDUAL DEMAND CURVEMARKET DEMAND CURVE

DEMAND FUNCTION:-FUNCTIONAL RELATIONSHIP B/W THE DEMAND FOR A COMMODITY AND ITS AFFECTING FACTORS. Dx=F(Px,Pr,Y,T...) HERE; Dx=DEMAND FOR X COMMODITY Pr=PRICE OF RELATED GOODS Y=INCOME OF CONSUMER T= TASTE ANDPREFERENCES

LAW OF DEMANDOTHER THINGS BEING EQUAL /CONSTANT.WHEN THE DEMAND OF A COMMODITY EXPANDS WITH THE FALLS IN ITS PRICE AND CONTRACTS WITH THE RISE IN ITS PRICE IS KNOWN AS LAW OF DEMAND. Dx=f(Px,Pr,Y,T) HERE;Dx= DEMAND FOR X COMMODITYPx= PRICE OF X COMMODITYPr=CONSTANT PRICE OF RELATED GOODSY=CONSTANT CONSUMER`S INCOMET=CONSTANT TASTE AND PREFERENCE

TABLE:-Px(RS.)Dx(units)130232010

ASSUMPTIONS OF LAW OF DEMAND:-THERE IS NO CHANGE IN CONSUMER`S INCOME.NO CHANGE IN TASTE AND PREFERENCES.NO CHANGE IN PRICE OF RELATED GOODS.NO CHANGE IN POPULATION.

EXTENSION OF DEMAND:-OTHER THINGS BEING EQUAL /CONSTANT ,WHEN MORE QTY. IS DEMANDED BECAUSE OF FALL IN ITS PRICE , IT IS CALLED EXTENSION OF DEMAND.

Px(Rs.)Dx(units)1082025

CONTRACTION OF DEMAND:-OTHER THINGS BEINGS EQUAL /CONSTANT WHEN LESS QTY. IS DEMANDED BECAUSE OF RISE IN ITS PRICE , IT IS TERMED AS CONTRACTION OF DEMAND.


INCREASE IN DEMAND:-WHEN BECAUSE OF CHANGE IN FACTORS OTHERS THAN PRICE OF THE COMMODITY CONCERNED, MORE QTY. AT THE SAME PRICE OR SAME QTY. AT HIGHER PRICE IS DEMANDED IS CALLED INCREASE OF DEMAND. Px(Rs.)Dx(units)10102025


DECREASE IN DEMAND:-WHEN BECAUSE CHANGE OF THE FACTORS OTHER THAN THE PRICE OF THE COMMODITY CONCERNED , LESS QTY. AT THE SAME PRICE OR SAME QTY. AT A LOWER PRICE IS DEMANDED IS KNOWN AS DECREASE IN DEMAND.



MOVEMENT ALONG DEMAND CURVE:- OTHER THINGS BEING EQUAL,IF THE QTY . DEMANDED INCREASE OR DECREASES DUE TO FALL OR RISE IN PRICE OF THE COMMODITY ABOVE KNOWN AS MOVEMENT ALONG DEMAND CURVE. THERE IS UPWARD OR DOWNWARD MOVEMENT ALONG THE SAME DEMAND CURVE.IT IS DUE TO CHANGE IN PRICE ONLY.CHANGE IN QTY.

FIG:-

SHIFTING OF DEMAND CURVE:- IF MORE OR LESS QTY . OF A COMMODITY IS DEMANDED , AT THE SAME PRICE DUE TO CHANGE IN FACTORS OTHER THAN THE PRICE OF THE COMMODITY CONCERNED ,IT IS CALLED AS SHIFTING OF DEMAND CURVE. THERE IS A RIGHTWARD OR LEFTWARD SHIFT IN DEMAND CURVE.IT IS DUE TO CHANGE IN INCOME, TASTE , FASHION, GOVT. POLICY, ETC.CHANGE IN DEMAND.

FIG.:-

EXCEPTIONS OF LAW OF DEMAND:-EXPECTATION OF FURTHER CHANGE IN PRICE OF THE COMMODITY.PRESTIGIOUS GOODSGIFFEN GOODSNECESSITIESDEMONSTRATION EFFECTEMERGENCY

REASONS FOR DEMAND CURVE SLOPES DOWNWARD TO RIGHT:-LAW OF DIMINISHING MARGINAL UTILITYINCOME EFFECTSSUBSTITUTION EFFECTSNEW CUSTOMERSDIFFERENT USES

FACTORS AFFECTING DEMAND:-INDIVIDUAL DEMAND:-CHANGE IN CONSUMER`S INCOME:- INCOME DEMAND -2 GOODSNORMAL GOODSINFERIOR GOODSPRICE OF THE COMMODITYCHANGE IN PRICE OF RELATED GOODS:- SUBSTITUTE GOODSCOMPLEMENTARY GOODSCHANGE IN TASTE, NATURE, AND FASHIONEXCEPTATION OF FURTHER PRICE CHANGE CHANGE IN CLIMATE AND SEASONS

FACTORS AFFECTING DEMAND:-MARKET DEMAND:-POPULATION AND NO. OF HOUSEHOLDDISTRIBUTION OF INCOME AND WEALTHGOVT. POLICY

CLASSIFICATION OF DEMAND:-DERIVED AND AUTONOMOUS DEMAND INDUSTRIES AND COMPANIES DEMANDTOTAL MARKET AND MARKET SEGMENT DEMANDINDIVIDUAL AND MARKET DEMANDLONG TERM AND SHORT TERM DEMANDPRODUCERS GOODS AND CONSUMER GOODS DEMAND

ankur ppt demand

Economy & Finance