1. 4/29/2014 ASSIGNMENT -1 1
MOVEMENT OR SHIFT IN DEMAND CURVE
OR
INCREASE OR DECREASE IN DEMAND
CURVE
-by
DHEERAJ BHAVE
AVRIL RODRIGUES
SUKHWINDER KOUR BARIAR
SURENDRA.K
MARY DIVYA
ABHAY
ROHAN TARKARI
K.CHAKRA RANADHIR

2. DEMAND=DESIRE+ABILITY TO
PAY/WILLINGNESS TO PAY
Demand curve
2

3. What is supply ?
Supply is a relationship b/w quantity and price.
3
supply curve

4. Law of Demand
 Quantity demanded and the price of a commodity are
inversely related, other things remaining constant.
Assumptions :
1. Habits, taste and fashion remain the same
2. Price of related goods remain the same
3. No. of buyers remain the same
4. People expect no change in price
4/29/2014 ASSIGNMENT -1 4

5. CHANGE IN DEMAND CURVE :Price remaining constant ,a rise
or fall in demand due to the change in other factors (such
as rise in income,habits,preference etc,) is called change in
demand curve
INCREASE IN DEMAND : A rise in demand caused by
favourable changes in other factors at same price is called
increase in demand or rightward shift in demand curve
DECREASE IN DEMAND : A fall in demand caused by
favourable change in other factor at same price is called
decrease in demand or leftward shift in demand curve4/29/2014 ASSIGNMENT -1 5

6. CHANGE IN SUPPLY : Price remaining constant ,the rise or fall
in supply due to change in the other factors, is called change
in supply
INCREASE IN SUPPLY : Price remaining constant, a rise in supply
due to favourable changes in the other factors , is called
increase or rightward shift in supply
DECREASE IN SUPPLY : Price remaining constant , a fall in the
supply due to unfavourable changes in the other factors is
called decrease or leftward shift in supply
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7. DIAGRAM
Y
D2 D D1
DECREASE INCREASE
D2 D D1
O Q2 Q Q1 X
4/29/2014 7ASSIGNMENT -1
DEMAND (D)
PRICE(P)

8. DIAGRAM
CHANGE IN SUPPLY

 Y S1 S S2
 DECREASE INCREASE


 S1 S S2
 O N1 N N2 X

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PRICE
SUPPLY

9. 4/29/2014 ASSIGNMENT -1 9