Introduction-

Our Product : Kaju Katli

Preferred Sweet

Kaju Katli Pista Burfi Gulab Jamun Ghevar

What Is the Law of Demand?

The law of demand states that the quantity purchased varies inversely with
price. In other words, the higher the price, the lower the quantity
demanded. This occurs because of diminishing marginal utility. That is,
consumers use the first units of an economic good they purchase to serve
their most urgent needs first, then they use each additional unit of the good
to serve successively lower-valued ends.

As the collected data clearly tells us that if we increase the prices the
consumer’s demand of the preferred sweet decreases or the switch to their
2nd preferred sweet.

Response to price change

No change will buy their 2nd Priority will buy less quantity
Demand Curve

The demand curve is a graphical representation of the relationship

between the price of a good or service and the quantity demanded
for a given period of time. In a typical representation, the price
appears on the left vertical axis while the quantity demanded is on
the horizontal axis.

Demand curve
585
580
575
570
565
560
555
550
545
540
535
0.8 1 1.2 1.4 1.6 1.8 2 2.2 2.4 2.6

According to the data collected by us the initial average demand by a consumer on

the initial price of 550/kg was approx. 2.5 kg per month but as the price is increased
the demand decreases , thus showing a downward slope of the Demand Curve.
Determinants of demand are as follows:
 Price of product.

As seen in the demand Curve , as the price of the product increases the demand
decreases.

 Consumer's Income.

Consumer’ Income plays a major in the goods demaned by them.The higher is the
income quantity demanded increases

 Price of Related Goods.

 Tastes and Preferences of Consumers.
 Consumer's Expectations.
 Number of Consumers in the Market.
 Festive season
*****Elasticity of Demand
The elasticity of demand, or demand elasticity, measures how demand
responds to a change in price or income. It is commonly referred to
as price elasticity of demand because the price of a good or service is the
most common economic factor used to measure it.

An elastic good is defined as one where a change in price leads to a

significant shift in demand and where substitutes are available for an item,
the more elastic the good will be.
******Demand curve is the marginal benefit curve
and consumer surplus

The demand curve is also a marginal benefit curve. Marginal benefit

is measured based on how much a person is willing to give up to
get it, which in this case is how much money a person is able and
willing to pay for something.
How Do Seasonal Products Exhibit Price Elasticity?
Seasonal products may show varying price elasticities based on demand
fluctuations throughout the year. During peak seasons, demand may be
inelastic as consumers are willing to pay higher prices. Conversely, during
off-peak periods, demand becomes more elastic, and price reductions can
stimulate sales.

As the collected data clearly tells us that in the festive season consumers
switch their preference and go for a more expensive good.In our data
consumers generally preferred Kaju katli more but in festive season most
consumers shifted to Ghevar.

Festive Seasonal Preference

Kaju Katli Pista Burfi Gulab Jamun Ghevar