This document discusses demand and supply. It defines demand as the quantity of a good consumers are willing and able to buy at different prices. The law of demand states that, all else equal, as price increases quantity demanded decreases. A demand schedule shows the relationship between price and quantity demanded, and a demand curve graphs this. The document also discusses factors that influence demand, exceptions to the law of demand, the law of supply, supply schedules and curves, factors that influence supply, and exceptions to the law of supply.

1. DEMAND & SUPPLY

2. Content:
 Law of Demand
 Demand schedule and Curve
 Shift in Demand Curve
 Factors Influencing Demand
 A)Individual
 B)Market
 Exception of the law of Demand

3. Continued…
 Law of Supply
 Supply Schedule and Curve
 Shift in Supply Curve
 Factors influencing Supply
 Exception to Law of Supply

4. What is Demand?
 Quantities of a particular good or service consumers are willing and able to buy
at different possible prices.
 Effective Demand=Desire + Ability to pay + Willingness to pay.
Quantity Demanded- amount of a good that the consumer is willing to buy and
able to buy at a given price over a period of time

5. The Law of Demand:
According to Alfred Marshall,
“Other things being equal if the price of a commodity falls, the quantity demand of it will raise and if
the price of the commodity raises, its quantity demanded will decline.”
when price Demand when price Demand
goes up… goes down… goes down… goes up…

6. Demand Schedule & Curve:
Price (in ₹) Quantity (in
units)
10 50
20 40
30 30
40 20
50 10
0
10
20
30
40
50
60
0 10 20 30 40 50 60
Y-VALUES

7. Shift in Demand Curve:
 A shift in the demand curve indicates that the demand for the products has
changed even though price for the product has not changed

8. Factors Influencing Demand:
Individual Demand-

9. Market Demand-

10. Exceptions to the Law of Demand:
 Giffen Goods
 Conspicuous consumption
 Change in fashion
 Emergencies
 Future changes in prices

11. What is Supply?
 The amount of a product that is offered for sale at all possible prices in the market.
Supply= Ability to sell + Willingness to sell

12. The Law of Supply:
An important microeconomic law that states, all other factors being equal, as the price of a good or
service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.
when price supply When price Supply
goes up…. goes up… goes down… goes down…

13. Supply Schedule & Curve:
Price (in ₹) Quantity (in units)
10 20
20 40
30 60
40 80
50 100
0
10
20
30
40
50
60
0 10 20 30 40 50 60
Y-VALUES

14. Shift in Supply Curve:
 The supply curve will shift, i.e. conditions other than price affect the supply of a
product, then the supply curve for the product will shift.

15. Factors Influencing Supply:

17. Exceptions to the Law of Supply:
 Backward bending labour supply curve
 Future Expectations
 Sellers who are in need of cash

18. Thank You…!!!
Presented By-
Pratiksha Kolambkar