This document discusses the law of demand and factors that influence demand. It defines the law of demand as the quantity demanded of a good decreasing when its price rises and increasing when its price falls, assuming other factors remain unchanged. It then lists different types of demand, such as individual vs. market demand. The document also outlines assumptions of the law of demand, like no changes in consumer income or related good prices. Finally, it notes some exceptions, such as Giffen goods or changes in income, fashion, or expectations.

1. L A W O F D E M A N D
P R E S E N T E D BY -
P R AT H A M E S H

2. Demand
Law of Demand
Types of Demand
Factor influencing demand
Exception of law of demand
Assumption of law of demand

4. SATISFACTION
NEEDS
PURCHASE DEMAND
WANTS

5. Law of
Demand
OTHER THINGS BEING EQUAL , THE DEMAND IS HIGHER
WITH THE FALL IN PRICE , AND DIMINISHES WITH RISE IN
PRICE. –
PRO. MARSHALL–
When
prices
goes up…
Quantity
demand
goes
down

6. 0
1
2
3
4
5
6
0 100 200 300 400 500 600 700
Price (per unit) Quantity
demanded
5 100
4 200
3 300
2 400
1 600
Quantity demanded
P
R
I
C
E

7. INCREASE IN
DEMAND
DECREASE IN
DEMAND
Factors influencing demand

8. TYPE OF
DEMAND
Individual demand
and market
demand
Joint demand
Composite
demand
Direct & derived
demand
Durable goods &
Perishable Goods
Industry demand &
Company demand

9. Joint demand -refers to the relationship between two or
more commodities or services when they are demanded
together.
Direct demand- refers to demand for goods meant for
final consumption. Thus the demand for an input or what is
called a factor of production is a derived demand.
Composite demand- is where goods have more than
one use. An increase in the demand for one product leads to
a fall in supply of the other.
Competitive Demand-When two commodities are
fairly close substitutes for one another

10. Individual demand- refers to the demand for a good or a service by
an individual .-Market demand is the sum of the individual demand for a
product from buyers in the market.
Durable & perishable Goods- Durable goods are those
goods that can be used more than one’s over a period of time.
Perishable goods are those goods which can be used only one’s.
Industry Demand & Company Demand
Demand Industry total demand for the product of the particular
industry.
The company demand on the other hand is the demand for the
product of particular company.

11. No Change In
Consumer Income
No change size of
population
No Change In Fashion
No Change In Price Of
Related Goods
No change in
government policies
No change in weather
conditions
Assumption of law of demand

12. Exceptions and
Limitations
Inferior
goods/
Giffen
goods
Goods
having
prestige
value
Price
expectation
Compleme
ntary
goods
Change in
fashion
Change in
income