Cell Signaling

DEMANDGroup 1:Babista, Francine Bernice Loreen Antoinette Bantulo, HoneybeBautista, Roxanne FayeDiano, JuliebethEstrada, Therez AnneJohannis, Christina AnneTan, SharleneValenzuela, Ma. KatarinaYting, Shekinah MaeWhat is Demand ?Demand refers to the number or amount of goods and services desired by the consumers at various prices in a particular period of time

Quantity demand amount of goods or services consumers are willing and able to buy/purchase at given price, place, and period of time.That as the price increases, quantity demanded decreases; and as price decreases, quantity demanded increases

Deals with the functional relationship between price and the quantity demandedThe law of demand statesThere are factors other than price influenced the quantity demanded such as:Tastes and preferences, income, expectation on future prices, prices of related goods like substitutes and complements, and the size of population

The functional relationship between price and quantity demanded is essential since these nonprice factors remained constant (ceteris paribus)

Ceteris Paribus AssumptionThe law of demand now states, assuming other things are constant, price and quantity demanded are inversely proportional.

4Income effectSubstitution effectJustification for the Law of DemandImplies that at a lower price, the consumer have a greater purchasing powerIncome effectWhen the price of goods decreases, the consumer can afford to buy more of the goods6In case that the price of goods that consumers buy increases, they look for substitutes with a lower priceSubstitution EffectIt is expected that consumers tend to buy goods with a lower price. Read ppt..Example:Since the price of imported rice cant be afford by most of the filipinos, nfa rice demands becomes higher since it is lower compare to the other rice..7Determinants of DemandInfluence the quantity of demandNon priced determinants

This includes consumers income, expectation of future prices, price of related products, taste & preference and population.8Consumers IncomeA change in income will cause a change in demandNormal GoodRefers to a good for which demand at every price increases when income increases or vice versaRice, Electricity, Water

The direction in which the demand will change in response to a change in income depends on the types of goods.

Normal Good Basic necessities9Consumers IncomeInferior GoodRefers to a good for which demand falls when income rises and vice versaPublic transportation

As income of passengers in Manila increase significantly, they tend to reduce their consumption for the services of the public utility vehicles as a mode of transportation and instead they drive their own car10Consumers Expectation of Future PricesQuantity of a good demanded within any period depends not only on prices in that period but also on prices expected in future periodsGasoline

If car owners expect the price of gasoline to increase in the future, there is the tendency of panic buying to maximize the purchasing power of their money. Thus, the demand for gasoline increases. 11Prices of Related ProductsThe demand for any particular good will be affected by changesin the prices of related goods.

The direction in which the demand will change in response to a change in prices of related products depends on the following relationships of products:

1. Substitute Products - are goods that can be used in place of other goods.Prices of Related Products

1. They are related in such a way that an increase in the price of one good causes an increase in the demand for the other good or vice versa. Example: Examples of substitute goods include margarine and butter, tea and coffee.2. Complementary products - are goods that go together or cannot be udes without the otherAn example of this would be the demand for hotdogs and hotdog bunsPrices of Related Products

2. they are related in such a way that an increas in the price of one good will cause a decrease in the demand for the other goodThe supply and demand of hotdogs is represented by the figure at the right with the initial demand D1. Suppose that the initial price of hotdogs is represented by P1 with a quantity demanded of Q1. If the price of hotdog buns were to decrease by some amount, this would result in a higher quantity of hotdogs demanded. This higher quantity demanded would cause the demand curve to shift outward to a new position D2. Assuming a constant supply S of hotdogs, the new quantity demanded will be at D2 with a new price P2.Printers and ink cartridgesDVD players and DVDsComputer hardware and computer softwareBoots and lacesTorch and batteryConsumers' Tastes and PreferencesConsumers' tastes and preferences are major factors in determining the demand for any product

Religion, culture, traditions, and age are some of the factors that can affect them. As preference and taste become inclined for a certain product, demand will certainly increase for that product or vice versaConsumers may clamor for an item one year and ignore it the next - PopulationAn increase in the population means more demand for goods and services. Inversely, less population means less demand for goods and services.

Example: China is fast becoming an economic superpower as investments are continuously flowing to their economy.the main reason for this is its huge market of 1.8 billion that has attracted investors from the U.S and europeChina was often seen as one of the most important reasons of food crisis. There are basically three arguments for this issue: huge economic growth, huge oil demand and huge population of China.

Chinas economy has been growing for the nearly three decades very sharply. Economic growth has increased per capita income which has changed peoples diet. The more income they get, the more quality food like meat, poultry and dairy products they consume instead of grain. China needs more grain not for direct consumption but for feeding livestock. Chinas demand for grains is believed to have in turn, increased prices.Demand FunctionRepresentation of the relationship between demand and all of its determinants expressed in a mathematical language using functional form.Qdx = f(Px, Y, e, Prel, T, Pop)Where :Qdx = quantity demandPx = price of goods and servicesY = income of consumerse = consumers expectations of future pricesPrel = price of related productsT = consumers tastes and prefencesPop = population size

Demand FunctionThe demand functions can be rewritten as follows if all determinants except price are kept constant (ceteris paribus)Qdx = f (Px)

A linear equation can be constructed using the simplified functional expression. This equation is a representation of quantity demanded for good x in a given period of time. Qdx = a bPx

Linear Demand function for SUV Qdx = 4000 500PDemand for a product

The quantity that buyers are willing to buy. 19Demand Schedule Price of X(per kilo)Quantity Demanded (in kilos)P454035302520100150200250300350Demand schedulelisting of the different quantities of goods and services that buyers will purchase given the various alternative pricesMust specify the time period during which the quantities will be bought

Hypothetical market demand Schedule for good x per week

Quantity demanded values are rates of purchases at alternative prices.

It can be seen from table 4 that at lower prices of x, people get attracted to buy more.

so, (read notes)20Demand CurveA graphical presentation ofdemand schedulereality that price and demand move in inverse directionsNormal demand curve slopes downward from left to rightIn simplest terms, a demand curve is a graphical representation of the reality that price and demand move in inverse directions. As price is increased, demand generally falls. When you lower the price of a product, demand increases. This is known as the law of demand.

"demand" refers to the total amount of the commodity that is consumed21Changes in Quantity Demanded and Movements along the Demand Curve

Demand curves plot the relationship between price and demand (consumption). The horizontal axis (X axis) shows the unit price of the commodity, and the vertical axis (y axis) shows the total amount of that commodity consumed at each of the prices.

Because less of a commodity is consumed when the price goes up, the demand curve drops.

Any point on the demand curve reflects the quantity that will be bought at the given price

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The slope of the demand curve may be different for different commodities. For some commodities, a small change in price will mean a big drop in consumption, but for others, even big changes in price will not change consumption much at all. The slope of the demand curve is an important way to describe the relationship between price and demand (consumption). If the line has a gentle slope, this indicates that large price increases do not lower consumption very much, but if the slope is steep, this means that small changes in price cause big changes in consumption.

Demand curves that have a slope between 0.0 and -1.0 show that as price goes up, people pay more, but their consumption decreases to some extent (inelastic demand).

A line with a slope of exactly -1.0 shows that as the price increases, people pay exactly as much as they always did, but consume perportinately less. Thus, at a slope of exactly -1.0, indicates that when the price doubles, people consume half as much.

If price increases cause people to actually spend less on a commodity, the demand curve will have a slope of greater that -1.0., i.e. they they consume less of the commodity and they spend less on the commodity (elastic demand).

The slope of the demand curve for one product will become steeper if a supplementary commodity is available.

If two commodities are complements, then decreases in the consumption of one will cause decreases in the consumption of the other.

23Factors Affecting the Demand CurveCeteris Paribus Assumptionassuming all other things remain constantCompetitionConsumer populationEconomic conditionsPositive/negative news

Ceteris Paribus law of demand takes into account taht factors such as tastes and preferences, income, expectation on future prices, prices of related good like substitutes or complements, and size of population may affect the demand curve, and thus, are taken as constant. If it is dropped, changes in nonprice factors shall take place.

A few exceptions to this consistent depiction exist. For instance, if all other competitors raise or lower prices in line with your company, your demand is less likely impacted. More consumers in a market naturally leads to higher demand, which can offset slight price increases. If economic conditions improve and consumer income rises, this may offset increased prices. A positive or negative news event can also impact demand at various price points.

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