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Changes in demand

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Changes in demand

1. 1. Welcome<br />
2. 2. Changes in DEMAND<br />
3. 3. Changes in DEMAND<br />1. Introduction to demand <br />
4. 4. 1. Introduction to demand <br />
5. 5. 2. Meaning and definition of Demand <br />
6. 6. 2. Meaning and definition of Demand <br />The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price within a period of time.<br />In economics, demandis the desire to own , the ability to pay for it, and the willingness to pay to buy a particular commodity at Price within a given point of time.<br />
7. 7. 3. Demand function<br />
8. 8. 3. Demand function<br />The demand function is the mathematical expression of the functional relationship between the quantity of a good and those factors that affect the willingness and ability of a consumer to buy the good. <br /> Demand function >Qd = f(Px, Y , Pr, t, p, w, g, Ad, wealth, etc)<br />When these factor change the demand is also change.<br />
9. 9. 4. Types of Changes in Demand <br />
10. 10. Due to changes in Price of the commodity <br />( Other factors remaining the same)<br />Extension of demand<br /> Contraction of demand<br />Due to changes in other than Price – Shift in demand <br />( Price of the commodity remaining the same )<br />Increasing demand – Upward shift in demand <br />Decreasing in demand – Downward shift in demand <br />4. Types of Changes in Demand <br />
11. 11. Extension of demand <br />
12. 12. Due to changes in Price of the commodity -<br />( Other factors remaining the same)<br />Extension of demand <br />5. Due to changes in Price <br />An extension of demand is an rise in the quantity demanded because the price has changed , other factor reaming the same.<br />
13. 13. Price of good<br />5. Due to changes in Price a) Extension of demand <br />E1<br />P-12,000<br />E2<br />P-8,000<br />Q -15<br />Q -20<br />E1 to E2<br />Quantity demanded <br />An extension of demand denoteE1 to E2<br />is an rise in the quantity demanded because the price has changed , other factor reaming the same.<br />
14. 14. Contraction of demand <br />
15. 15. Due to changes in Price of the commodity ( Other factors remaining the same)<br />Extension of demand and<br /> Contraction of demand<br />5. Due to changes in Price b) Contraction of demand <br />An CONTRACTION of demand is an fall in the quantity demanded because the price has changed , other factor reaming the same.<br />
16. 16. Contraction of demand <br />E2<br />P-15,000<br />E1<br />P-12,000<br />Price of good<br />Q -15<br />Q -10<br />Quantity demanded <br />An CONTRACTION of demand is an fall in the quantity demanded because the price has changed , other factor reaming the same.<br />
17. 17. Extension of demand Contraction of demand<br />Are due to changes in Price of the commodity<br />The change taken place on the same demand curve – Movement along the demand curve.<br />Leads to changes on quantity demanded <br />
18. 18. 6.Due to changes in factors other than price <br />
19. 19. Due to changes in other than Price – Shift in demand <br />( Price of the commodity remaining the same )<br />Increasing demand – Upward shift in demand<br />Decreasing in demand – Downward shift in demand<br />6.Due to changes in factors other than price <br />
20. 20. Due to changes in other than Price – Shift in demand <br />( Price of the commodity remaining the same )<br />A shift in demand curve refers to the effect of in demand due to changes in a factor other than price. <br />Shift in demand taken place due to the changes in<br />Income of the consumer<br />Price of related goods<br />Advertisement<br />Government policy<br />Taste and preference<br />etc <br />
21. 21. Due to changes in other than Price – Shift in demand <br />( Price of the commodity remaining the same )<br />Increasing demand – Upward shift in demand<br />Decreasing in demand – Downward shift in demand<br />
22. 22. a) Increase in demand <br />
23. 23. Due to changes in other than Price – Shift in demand <br />( Price of the commodity remaining the same )<br />Increasing demand – Upward shift in demand<br /><ul><li>An increase in income of the consumer
24. 24. High level of advertisement </li></ul>E1<br />P-12,000<br /> a) Increase in demand <br />Price of good<br />Q -15<br />Quantity demanded <br />
25. 25. Due to changes in other than Price – Shift in demand <br />( Price of the commodity remaining the same )<br />Increasing demand – Upward shift in demand<br />Price of good<br />E1<br />E2<br />P-12,000<br /> a) Increase in demand <br />Q -15<br />Q -20<br />Quantity demanded <br />
26. 26. b) Decrease in demand <br />
27. 27. Due to changes in other than Price – Shift in demand <br />( Price of the commodity remaining the same )<br />Increasing demand – Upward shift in demand<br />Decreasing in demand – Downward shift in demand<br />
28. 28. Due to changes in other than Price – Shift in demand <br />( Price of the commodity remaining the same )<br />b) Decreasing demand – downward shift in demand<br /><ul><li>A fall in in income of the consumer
29. 29. Low level of advertisement </li></ul>E1<br />P-12,000<br /> a) Increase in demand <br />Price of good<br />Q -15<br />Quantity demanded <br />
30. 30. Due to changes in other than Price – Shift in demand <br />( Price of the commodity remaining the same )<br />b) decreasing demand – downward shift in demand<br />Price of good<br />E1<br />E2<br />P-12,000<br /> a) Increase in demand <br />Q -15<br />Q -10<br />Quantity demanded <br />
31. 31. 7. Conclusions<br />
32. 32. ???<br />