There is a brief introduction to the concept of Demand. The Law of Demand is properly explained with the help of Demand schedule and Demand curve. There is an explanation about the kind of phenomenon where The law of demand analysis doesn't apply. The reason for downward sloping of the demand curve is explained in the above presentation. Hope this presentation will fulfill the needs of students, teachers and scholars.

1. Concept of
Demand

2. Demand
The concept of Demand was given by Alfred Marshall in 1890s in his book
“Principles of Economics”.
According to him, the demand can be represented by following words:
1. Desire
2. Willingness
3. Ability to pay for the commodity
4. Time.
Demand is a flow concept

3. Law of Demand
The law of Demand was given by Alfred Marshall. It is a partial equilibrium
analysis and states that there is an inverse relationship between price of the
commodity and quantity demanded of it. In other words it states that there will
be a opposite relationship between price and quantity demanded of the
commodity.
I.e., When the price of the commodity increases the quantity demanded of the
commodity tends to fall vice versa.

4. Demand curve
Diagrammatic or graphical representation of the Law of demand is termed as
Demand Curve.

5. Demand schedule
Price (INR) Quantity
Demanded(Kg)
2 15
4 12
6 8
8 4
10 1
Demand Schedule
It is the tabular presentation of the law of demand

6. Reasons for download sloping of demand curve
• Law of diminishing marginal utility: It states that “as the consumer
consumes more and more units of a commodity, the marginal utility derived
from each successive unit keeps on decreasing.
• Income Effect
• Substitution effect.
(we are going to study about these effects in the ongoing chapters)

7. Exceptions to the Law of Demand
• Giffen goods: The concept was given by Robert Giffen. According to him,
for Giffen goods there is a positive relationship price and quantity demand.
• Veblen effect: Goods having prestige value are exempted.
• War: war is another exemption to the law demand.
• Bandwagon Effect: It arises because individuals demand commodities
because others are doing so, or in other words, it is in fashion.