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    Demand

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    Swathi Patil
    The document discusses the laws of demand, defining demand as a consumer's ability and willingness to pay for a commodity. It outlines that a demand function shows how much of a commodity is demanded at different prices over time in a given market area. The key determinants of demand are changes in consumer tastes, income, prices of related goods, expectations, and market size. The main law of demand states that, assuming all else is kept constant, the quantity demanded of a commodity increases when its price decreases and decreases when its price increases.

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    Demand

    Uploaded by

    Swathi Patil
    19 views10 pages
    The document discusses the laws of demand, defining demand as a consumer's ability and willingness to pay for a commodity. It outlines that a demand function shows how much of a commodity is demanded at different prices over time in a given market area. The key determinants of demand are changes in consumer tastes, income, prices of related goods, expectations, and market size. The main law of demand states that, assuming all else is kept constant, the quantity demanded of a commodity increases when its price decreases and decreases when its price increases.

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    DEMAND Laws of demand Presented by: swathi patil

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    The document discusses the laws of demand, defining demand as a consumer's ability and willingness to pay for a commodity. It outlines that a demand function shows how much of a commodity is demanded at different prices over time in a given market area. The key determinants of demand are changes in consumer tastes, income, prices of related goods, expectations, and market size. The main law of demand states that, assuming all else is kept constant, the quantity demanded of a commodity increases when its price decreases and decreases when its price increases.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    19 views10 pages

    Demand

    Uploaded by

    Swathi Patil
    The document discusses the laws of demand, defining demand as a consumer's ability and willingness to pay for a commodity. It outlines that a demand function shows how much of a commodity is demanded at different prices over time in a given market area. The key determinants of demand are changes in consumer tastes, income, prices of related goods, expectations, and market size. The main law of demand states that, assuming all else is kept constant, the quantity demanded of a commodity increases when its price decreases and decreases when its price increases.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 10

    DEMAND

    Laws of demand
    Presented by: swathi patil

    WHAT IS DEMAND?
    Demand is a device for a commodity backed by the ability and willingness to pay for it. A demand function is a behavior function for consumers.

    Demand for a commodity should have:


    The quantity demanded of a commodity The price at which a commodity is demanded The time period over which a commodity is demanded The market area in which a commodity is demanded

    DETERMINANTS OF DEMAND
    Change in consumer tastes Change in peoples income Change in prices of related goods

    Change in expectations
    Change in size of market

    LAW OF DEMAND:

    All other things remaining on a


    the quantity

    constant,

    demanded
    increases

    of

    commodity
    its prices

    when

    decreases

    and

    decreases

    when its price increases

    ASSUMPTIONS:
    Income level should remain constant Tastes of the buyer should not change

    Prices of other goods should remain constant


    No new substitute for the commodity Price rise in future should not be excepted

    EXAMPLES:

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