The demand concept is one of the part of Managerial Economics. Demand Analysis is explained in simple and easy language.

1. Demand Analysis
Career Platform

2. Demand
Demand = desire for a product + willingness and ability to pay for it.
Demand in economics is the consumer’s desire and ability to purchase a good or
service.
Demand refers to the willingness and ability of consumers to purchase a given quantity
of a good or service at a given point in time or over a period of time.
According to Benham-
“The demand for anything, at a given price , is the amount of it, which will be bought per
unit of time at that price.”
Career Platform

3. Types of Demand
1. Direct/Autonomous Demand & Derived Demand
2. Demand for Durable Goods & Non-Durable Goods Demand
3. Short Run Demand & Long-Run Demand
4. Individual Demand & Market Demand
5. Joint Demand & Composite Demand
Career Platform

4. Determinants of Demand
 Consumer’s income
 Price of good
 Price of related goods
 Consumer’s taste and preferences
 Population
 Advertisements
 Credit facilities/discount by sellers. Career Platform

5. Law of Demand
Career Platform

6. Law of Demand : Definition
• According to Marshall,
“The amount demanded increases with a fall in price and diminishes
with a rise in price.”
• According to Samuleson,
“Law of Demand states that people will buy more at lower prices and
buy less at higher prices other things remaning same.”
Career Platform

7. Law of Demand : Definition
The law of demand expresses the functional relationship
between price and quality demanded. Generally price of a
commodity falls the demand for that commodity goes up and
vice-versa.
It means that there is an inverse relationship between the price
and quality demanded. The relationship is known as The law
of Demand.
Career Platform

8. Assumptions of the Law
• There is no change in income of consumer’s.
• There is no change in quality of product.
• The price of related commodities remains the same.
• There is no change in taste and preferences of consumer’s.
• The size of the population remains the same.
• The climate and weather conditions remains the same.
• The tax rates remains the same. Career Platform

9. Exceptions of the Law
 Giffen goods/Inferior goods
 Speculative goods
 Outdated goods
 Less supply
 Costly Luxury goods
Career Platform

10. Elasticity of Demand
Career Platform

11. Elasticity of Demand : Definition
Elasticity of Demand is defined as the ratio of
percentage change in demand to the percentage
change in one of the determinants of demand.
Career Platform

12. Types of Elasticity of Demand
1. Price Elasticity of Demand
2. Income Elasticity of Demand
3. Cross Elasticity of Demand
4. Promotional Elasticity of Demand
Career Platform

13. Degree of Elasticity of Demand
1. Perfectly Inelastic Demand
2. Perfectly Elastic Demand
3. Unitary Elastic Demand
4. Elastic demand or more than unit elastic demand
5. Inelastic demand or less than unit elastic demand
Career Platform

14. Demand Forecasting
Career Platform

15. Demand Forecasting : Definition
Demand Forecasting is the scientific and analytical estimation of demand for a
product for a particular period of time.
“It is the process of determining how much of what products is needed, when
and where”.
Career Platform

16. Techniques of Demand Forecasting
Qualitative method
Quantitative method
Career Platform

17. Thank You
For more information, visit our website
www.careerplatform.co.in