DEMAND

By: Samuel D. Fuego

Is a schedule of various quantities of
commodities which buyers are willing and
able to purchase at a given price, time
and place.
It requires two- (2) conditions to satisfy
the definition:
A. The willingness to buy
B. The ability to buy
Hypothetical market demand schedule for
rice per day in Zamboanga City

PRICE of Rice
(per kilo)
QUANTITY
DEMANDED in kilos
Php200 50
250 40
300 30
350 20
400 10


Demand Schedule

A table showing the quantity demanded
for a product at various prices.

It indicates the inverse relationship
between price and quantity demanded,
i.e., more units are bought at lower price.
Hypothetical Market Demand Curve for
Rice per day in Zamboanga City

Price/kilo
400 a
350 b
300 c
250 d
200 e
0 10 20 30 40 50 Qd/kilo
Law of Demand

It states that, as the price of a
commodity goes down, more of the
commodity will be bought. An increase in
the price of a commodity, on the other
hand, decreases the demand for that
commodity. Ceteris Paribus.
Non-Price Factors of Demand

1. Income (Y)
2. Population
3. Consumers tastes and preferences
4. Price expectations
5. Prices of related goods
Shifts of Demand Curve
Price


(rightward)
(leftward)
d2 d1 d3

Quantity
Hypothetical shift of demand
curve due to a change in income
Price/kilo
65
60
55 c a b
50
45 d3 d2
0 d1
1 2 3 4 5 Qd/kilo

Shift of demand curve due to
population change




(rightward)

do d1
Shift of demand curve due to
tastes and preferences




(leftward)

d1 do
CHANGES IN DEMAND

Refers to changes in the determinants of
demand. Demand curve will either shift to the
right or left to indicate an increase or decrease
in demand, respectively.
THANK YOU