BVIMSR-SEM-1 Managerial Economics.

1. By, Sagar Ajagaonkar {01}

2. Synopsis…
Defn:- Demand & Determinants.
Why MBA..?
Determinants of MBA course with
an example.
Defn:- Elasticity.
Price Elasticity affecting Factors.

3. DefinitionofDeterminant…
Demand:-
In economics, demand is the utility for a
good or service of an economic agent, relative to
his/her income
Determinant:-
Any Factor affecting the demand for a
commodity/product/service is defined as a
Determinant of demand for that particular
commodity/product/service.

5. CommonReasons..

6. RealReasons..
1. Career Progression
2. Career Shift
3. To Gain Knowledge
4. Networking
5. Brand Equity
6. Self-Growth/Personal Development

7. Explanation with the help of Example:-
• Consumer’s Income:-
In general, the demand varies proportionately with the
income of the Consumer. But as per the below data of FIMS
for MBA course it seems that the income factor does not
affect the demand increase/decrease for students pursuing
MBA.
Year Lowest Income of Guardian/Parent(in p.a)
2014 4
2015 3.5
2016 4.2 - 5.0( Predictive)

8. Contd..
• Consumer Preferences :-
Normally, Favorable change leads to an increase in
demand, unfavorable change lead to a decrease.
In this case the preferences for choosing MBA course in FIMS
college seems to be increasing from past years because of the
trend and popularity in terms of faculty, infrastructure,
placements.
19%
21%
29%
31%
No. of students admitted in
FIMS for MBA course
2013
2014
2015
2016

9. Contd..
• Number of Buyers :-
The more buyers lead to an increase in demand; fewer
buyers lead to decrease.
In my Example, the buyers are the applicants/students
pursuing for MBA and no .of admissions observes an upward
trend which concludes that the demand for this course in FIMS
is being increasing.
0
50
100
150
Year
2013
Year
2014
Year
2015
Year
2016
MBA Admissions in FIMS
No. of Students

10. Contd..
• Price of related goods:-
Substitute Goods:- price of substitute and demand for the
other good are directly related.
Complement Goods :- price of complement and demand
for the other good are inversely related.
In my Example, the substitutes for MBA course can be
considered as PGDM, Executive MBA, CS , ICWA etc. courses.
When there is increase in price for fees of MBA there is
increase in other courses too.

11. Contd..
•Expectation of future: :-
When people expect that the value of something will rise,
then they demand more of it.
In my Example, People are investing more for MBA course in
terms of the money and time because they expect more
returns after placements from FIMS, as per the analytical data
the average package of FIMS is higher then past once hence
there are applicants are willing to get admissions in the
institute.

12. DefinitionofElasticity
Defn:-
Elasticity refers to the degree of responsiveness in
supply or demand in relation to changes in price.

13. PriceElasticityAffectingFactors..
Factors Elastic/Inelastic Reason
Number of substitutes
available
Elastic PGDM has more subjects which
adds value.
Price/Income Ratio Inelastic Educational Loan facilities,
Freeships
Necessity Of the course Elastic If the job opportunities are less the
demand will decrease for MBA.
Time Factor Elastic If the course of duration is more
people would prefer JOB.
Variation in Course Elastic Extensive & Double specialization
courses can decrease demand for
MMS.

14. THANK YOU…!!!