Surjit economics

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Surjit economics

  1. 1. By Surjit Kaur Roll No. 43 Subject: Economics Std : XII B.Ed 2010-11 DEMAND ANALYSIS K.J Somaiya Comprehensive College of Education, Training and Research
  2. 2. DEMAND ANALYSIS : CONTENT <ul><li>MEANING </li></ul><ul><li>TYPES OF DEMAND </li></ul><ul><li>FACTOR/DETERMINANTS OF DEMAND </li></ul>
  3. 3. DEFINITION AND MEANING OF DEMAND <ul><li>The amount of a particular Economic good or service that a consumer will want to purchase at a given price – Business Dictionary.com </li></ul><ul><li>In economics, demand is the desire to own anything and the ability to pay and willingness to buy that commodity. </li></ul>
  4. 4. FORMULA OF DEMAND <ul><li>DEMAND = DESIRE + ABILITY TO </li></ul><ul><li>PAY + WILLINGNESS TO BUY </li></ul>
  5. 5. TYPES OF DEMAND <ul><li>It refers to demand of an individual for a particular product. </li></ul><ul><li>Factors influencing : </li></ul><ul><li>Disposable Income </li></ul><ul><li>Taste Preferences </li></ul><ul><li>Price of related products </li></ul><ul><li>Credit Facilities, etc </li></ul><ul><li>It refers to total demand of all individuals for a particular commodity </li></ul><ul><li>Factors influencing : </li></ul><ul><li>Size and Composition of the population </li></ul><ul><li>Social Customs, etc </li></ul>Market Demand Individual Demand
  6. 6. OTHER TYPES OF DEMAND <ul><li>Direct Demand </li></ul><ul><li>Demand for direct consumption. </li></ul><ul><li>All consumer goods have Direct demand. </li></ul><ul><li>Derived Demand </li></ul><ul><li>Demand for a commodity depends on the demand for goods & services of other services. </li></ul><ul><li>For E.g.. Land, Capital, Labour etc </li></ul>
  7. 7. IMAGES OF DIRECT AND DERIVED DEMAND
  8. 8. TYPES OF DEMAND <ul><li>JOINT DEMAND </li></ul><ul><li>Two or more commodities are demanded at same time. </li></ul><ul><li>For eg: Paper and pen, Car and petrol etc. </li></ul><ul><li>COMPOSITE DEMAND </li></ul><ul><li>A single commodity or service to satisfy various needs/ wants. </li></ul><ul><li>For eg: Electricity is needed for lighting, cooking and heating. </li></ul>
  9. 10. TYPES OF DEMAND <ul><li>COMPETITIVE DEMAND </li></ul><ul><li>Demand for a commodity competes with its substitutes. </li></ul><ul><li>For Eg. Cold drinks such as Coca Cola and Pepsi etc </li></ul>
  10. 11. FACTORS/DETERMINANTS OF DEMAND <ul><li>DETERMINANTS OF INDIVIDUAL DEMAND </li></ul><ul><li>DETERMINANTS OF MARKET DEMAND </li></ul>
  11. 12. FACTORS/DETERMINANTS INDIVIDUAL DEMAND <ul><li>Price </li></ul><ul><li>It influences the demand for commodity. </li></ul><ul><li>Inversely varies with Demand </li></ul><ul><li>Demand </li></ul><ul><li>Price </li></ul>
  12. 13. FACTORS/DETERMINANTS INDIVIDUAL DEMAND <ul><li>Price of the Substitute </li></ul><ul><li>If a substitute is available at a lower price </li></ul><ul><li>Demand for cheaper substitute is more. </li></ul>
  13. 14. FACTORS/DETERMINANTS INDIVIDUAL DEMAND <ul><li>Price of Complementary Goods </li></ul><ul><li>They have joint demand </li></ul><ul><li>Two or more goods to satisfy a want, </li></ul><ul><li>For Eg. Car and Petol </li></ul><ul><li>Utility </li></ul><ul><li>Basic purpose of demand for particular demand </li></ul><ul><li>A commodity does not provide utility to the consumer, he will not demand it. </li></ul><ul><li>For Eg. No demand for Cigarettes for a Non-Smoker. </li></ul>
  14. 15. FACTORS/DETERMINANTS INDIVIDUAL DEMAND <ul><li>Disposable Income </li></ul><ul><li>It is Basic requirement for demand. </li></ul><ul><li>It is the income after paying direct taxes. </li></ul><ul><li>For Eg. Rich people buy more goods than poor people. </li></ul>
  15. 16. FACTORS/DETERMINANTS MARKET DEMAND <ul><li>Size of population </li></ul><ul><li>Larger the size of population, greater the demand for various goods and services </li></ul><ul><li>Size of population </li></ul><ul><li>Demand </li></ul>
  16. 17. FACTORS/DETERMINANTS MARKET DEMAND <ul><li>Distribution of Income and Wealth </li></ul><ul><li>It depends on equitable distribution of income and wealth in an economy. </li></ul><ul><li>Standard of Living of the people </li></ul><ul><li>Higher standard of living, leads to greater market demand </li></ul><ul><li>Standard of Living </li></ul><ul><li>Demand </li></ul>
  17. 18. FACTORS/DETERMINANTS MARKET DEMAND <ul><li>Level of Taxation </li></ul><ul><li>Progressive tax on wealth will lead to less disposable income and hence the demand for many goods would be low. </li></ul><ul><li>Tax </li></ul><ul><li>Demand </li></ul><ul><li>Social Customs and Festivals </li></ul><ul><li>It influence the market demand </li></ul><ul><li>For E.g. In Diwali and Christmas there is great demand for clothes, cards etc. </li></ul>
  18. 19. QUESTIONS <ul><li>The relation between price and Demand is </li></ul><ul><li>. </li></ul><ul><li>Ans . Indirect </li></ul><ul><li>Name the two main types of Demand </li></ul><ul><li>Ans. </li></ul><ul><li>Individual Demand </li></ul><ul><li>Market Demand </li></ul>
  19. 20. QUESTIONS <ul><li>Give any 2 Factors/ Determinants of Individual Demand. </li></ul><ul><li>Ans. </li></ul><ul><li>Price </li></ul><ul><li>Price of Substitutes </li></ul><ul><li>Price of Complimentary goods </li></ul><ul><li>Utility </li></ul><ul><li>Disposable Income </li></ul><ul><li>Taste, Preference, Habits </li></ul>
  20. 21. THANK YOU !!!!!

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