Price and demand relationship

• Price
 Price is the amount that consumers will be
willing to pay for a product.

 Price is one element of marketing that

produces revenue. The other all elements
produce costs.
 Price and demand relationship
• Demand
 Demand is a principle of economics that
captures the consumers desire to buy the
product or service.
 Effective demand is demand supported by the
ability to pay.
 Price and demand relationship

• The law of demand states that a higher price

leads to a lower quantity demanded and that
a lower price leads to a higher quantity
demanded .And all other factor are constant.