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Welcome: Submitted By: Vishwaroopayadav Nikitha Sushmitha Bindu
Welcome: Submitted By: Vishwaroopayadav Nikitha Sushmitha Bindu
Submitted by:
Vishwaroopayadav
Nikitha
Sushmitha To
Bindu
Mr. Yash and Class
What is demand?
Distribution of income
Price of the commodity
Ceteris paribus i.e., other things being equal, the demand for
a commodity is inversely related to its price. It implies that a
rise in price of a commodity brings about a falls in its
purchase and vice-versa.
Price of related goods
There are two types of related goods:
The demand for a commodity also depends upon the tastes and
preferences of consumers and changes in them over a period of time.
Goods which are more in fashion command higher demand than the goods
which are out of fashion.
o Demonstration effect
Other factors
b) Composition of population
c) Distribution of income
Law of demand
Price effect
Income effect
Substitution effect
Different uses
Exceptions of the law of demand
o For ex: For normal goods, the demand curve shifts to the right.
When the income increases, the demand also increases.
o For inferior goods, the demand curve shifts to the left. It,
means, when the income increases, the demand for inferior
goods decreases.
Elasticity of demand
Point elasticity
Availability of substitutes
Habits
Price of goods
Variety of uses
Deferred consumption
Market awareness
Demand distinctions