It is a short presentation on Demand. See in Youtube: https://youtu.be/7s9KhMr7W7k

1. Presented By:
Md. Nazmus Saqib Khan
Roll no. 12075768
Email: ratulkhan.jhenidah@gmail.com
Class of Masters,
Department of Mathematics,
University of Rajshahi,
Rajshahi,6205.
P-1© Dept. of Mathematics, R.U.

2. Definition of Demand
Different Types of Demand
Relationship Between Demand & Price
Demand Curve
Demand Schedule and Demand Curve
Law of Demand and some Explanations
Shifts in the Market Demand Curve
The Law of Demand with Explanations
Substitution Effect
Income Effect
References
DEMAND
P-2© Dept. of Mathematics, R.U.

3.  Demand is an economic principle that
describes a consumer’s desire and willingness to
pay a price for a specific good or service.[1]
 Demand is a full description of how the
quantity demanded changes as the price of the
good changes.[2]
DEMAND
P-3© Dept. of Mathematics, R.U.

4.  Negative Demand: Negative demand is a type
of demand which is created if the product is
disliked in general. The product might be
beneficial but the customer does not want it. For
example, people would like to avoid heart
attacks and hence may pay for a full body check
up where the results might be negative, but still
the customer has to pay.[3]
DEMAND
P-4© Dept. of Mathematics, R.U.

5.  Unwholesome demand:
Unwholesome demand is the other side of negative
demand. In negative type of demands, customer
does not want the product even though product
might be necessary for the customer. But in
unwholesome demand, the customer should not
desire the product, yet the customer wants the
product badly. Best examples of unwholesome
demand are cigarettes, alcohol, pirated movies, guns
etc.[3]
DEMAND
P-5© Dept. of Mathematics, R.U.

6.  No demands: Certain products face the
challenge of no demand. The best example for
the same can be education courses where there
is very low demand or no demand at all(Foreign
Language Course). Such cases are very hard to
counter.[3]
DEMAND
P-6© Dept. of Mathematics, R.U.

7.  Latent Demand: Latent demand is, as
the name suggests, a demand which the
customer realizes later. Thus, while
buying the product, he might not desire
some features. But later on, he might
think about those features and buy the
product. The best example of latent
demand are normal phones vs.
smartphones. People nowadays want
more and more features in the
smartphone. They might settle for a
normal phone, but then later on they get
the itch to buy a smartphone.[3]
DEMAND
P-7© Dept. of Mathematics, R.U.
Fig. 1: Normal Phone vs.
Smartphone (Source:
google image)

8.  Declining demand:
Declining demand is when
demand for a product is
declining. For example, when
CD players were introduced
and IPOD came in the market,
the demand for walkman went
down. Although there was still
a demand for the product, the
demand was a declining
demand.[3]
DEMAND
P-8© Dept. of Mathematics, R.U.
Fig. 2: Walkman &
IPOD (Source: google
image)

9.  Irregular demand: Irregular demand can be
demand which is not consistent. The best
example of irregular demand is seasonal
products like umbrellas, air conditioners or
resorts. These products sell irregularly and sell
more during peak season whereas their demand
is very low during non seasons.[3]
DEMAND
P-9© Dept. of Mathematics, R.U.

10.  Full demand: In an ideal environment, a
company should always have full demand. Full
demand means that the demand is meeting the
supply potential of the company. It also means
that the markets are happy with the products of
the company and that people want to buy from
the same company. The marketing challenge in
this type of demand is to maintain the same level
of interest in the product and the company.[3]
DEMAND
P-10© Dept. of Mathematics, R.U.

11.  Overfull demands: Overfull demands happen
when the companies manufacturing capacity is
limited but the demand is more than the supply.
This can be observed in the cement industry
occasionally. Generally, most cement industries
have limited manufacturing capacity. And hence,
brand switching in cement industry is high.[3]
DEMAND
P-11© Dept. of Mathematics, R.U.

12. Relationship Between Demand &
Price
The relation between quantity demand and price
is known as demand price relationship .The
relationship is given below:
q=D(p),
where, q is the quantity of units that will sell at
price p and D(p), the demand function, is a
decreasing function of price p since higher price
implies lower demand. [5]
DEMAND
P-12© Dept. of Mathematics, R.U.

13. • The demand curve is a graphical representation
of the relationship between the price of a good or
service and the quantity demanded for a given
period of time.[1]
• In a typical representation, the price will appear
on the left vertical axis, the quantity demanded
on the horizontal axis.[1]
DEMAND
P-13© Dept. of Mathematics, R.U.

14. DEMAND
Price of
Ice-Cream Cone
0
2.50
2.00
1.50
1.00
0.50
1 2 3 4 5 6 7 8 9 10 11 Quantity of
Ice-Cream Cones
3.00
12
2. ... increases quantity
of cones demanded.
P-14
Copyright © 2004 South-Western
© Dept. of Mathematics, R.U.

15. • The law of demand states that
– the quantity demanded of a good falls when
the price of the good rises, and vice versa,
provided all other factors that affect buyers’
decisions are unchanged.
DEMAND
P-15© Dept. of Mathematics, R.U.

16.  That’s an important phrase in the wording of the Law of
Demand.
 The quantity demanded of a consumer good such as ice
cream depends on:
 The price of ice cream
 The prices of related goods
 Consumers’ incomes
 Consumers’ tastes
 Consumers’ expectations about future prices and incomes
 Number of buyers, etc.[4]
 The Law of Demand says that the quantity demanded of
a good is inversely related to its price, provided all other
factors are unchanged.
DEMAND
P-16© Dept. of Mathematics, R.U.

17.  How can we explain
the difference in
one’s behavior in
situations A and B?
 Why does the buyer
consume more in
situation B at every
possible price?
Quantity Demanded
Price Situation A Situation B
0.00 12 20
0.50 10 16
1.00 8 12
1.50 6 8
2.00 4 6
2.50 2 4
3.00 0 2
Price
Quantity DemandedDEMAND
P-17© Dept. of Mathematics, R.U.

18.  … are caused by changes in:
 Consumer income
 Prices of related goods
 Tastes
 Expectations, say, about future prices and
prospects
 Number of buyers
DEMAND
P-18© Dept. of Mathematics, R.U.

19. Price of
Ice-Cream
Cone
Quantity of
Ice-Cream Cones
Increase
in demand
Decrease
in demand
Demand curve, D3
Demand
curve, D1
Demand
curve, D2
0
DEMAND
P-19
Copyright © 2004 South-Western
© Dept. of Mathematics, R.U.

20. DEMAND
• Consumer Income[4]
– As income increases the demand for a normal
good will increase.
– As income increases the demand for an inferior
good will decrease.
• Prices of Related Goods[4]
– When a fall in the price of one good reduces the
demand for another good, the two goods are
called substitutes.
– When a fall in the price of one good increases the
demand for another good, the two goods are
called complements.
P-20© Dept. of Mathematics, R.U.

21. DEMAND
 There are two ways to explain the Law of
Demand
 Substitution effect
 Income effect
P-21© Dept. of Mathematics, R.U.

22.  When the price of a good decreases,
consumers substitute that good instead of
other competing (substitute) goods.
Coke Books MoviesClothes
1. When the price of Coke
decreases…
Pepsi
2. Consumption of
Pepsi decreases…
3. Consumption of
Coke increases
DEMAND
P-22
Copyright © 2004 South-Western
© Dept. of Mathematics, R.U.

23. • A decrease in the price of a commodity is
essentially equivalent to an increase in
consumers’ income.
DEMAND
P-23© Dept. of Mathematics, R.U.

24. Situation A
Price of an Apple 10.00
Price of an Orange 20.00
Income 100.00 Situation B
Price of an Apple 10.00
Price of an Orange 20.00
Income 200.00
If prices fall, Situation
A becomes Situation C.
If income rises, Situation
A becomes Situation B.
Q: Which change is better?
A: They are both equally
desirable. A fall in prices is
equivalent to an increase
in income.
Situation C
Price of an Apple 5.00
Price of an Orange 10.00
Income 100.00
DEMAND
P-24© Dept. of Mathematics, R.U.

25. [1] www.investopedia.com
[2] www.wikipedia.org
[3] www.marketing91.com/types-of-demand-2/
[4] www.thebalance.com/shift-in-demand-curve-
when-price-doesn-t-matter-3305720
[5] Industrial Mathematics by Charles R. MacCluer
DEMAND
P-25© Dept. of Mathematics, R.U.

26. Thanks to All!
DEMAND
P-26© Dept. of Mathematics, R.U.