Good for Every one

1. In economics , demand is an principle that
describes a consumer’s desire , willingness
and ability to pay a price for specific good
or service.
In other words , with fall in price demand
function shows rise and rise in price
demand falls . This relation in demand and
price in known as “LAW OF DEMAND”

2. It explains the relationship b/w change in
quantity demanded & change in price. It
states that higher the price,lower would be
demand in market and vice-versa

3.  The amount demanded increases with a fall in price and
diminishes with a rise in price.

4. It simply indicates the direction of change in demand
as a result of change in price.The law is explained
with the help of following demand:
a. Individual demand schedule
b. Market demand schedule

5.  It defines as table in which shows quantities of a given
commodity which as individual consumer will buy at
all possible prices at a given time.
Price per unit
(in rs.)
Quantity demands
(in units)
1 4
2 3
3 2
4 1

6.  It define as quantities of a given commodity which all
consumers will buy at all possible price at given
moment af time. As here A and B are two consumers of
X commodity.

7. Price of
commodity x
Demand of A Demand of B Market
demand
1 4 5 4+5=9
2 3 4 3+4=7
3 2 3 2+3=5
4 1 2 1+2=3

8.  1. Income level should remain constant
 2. Taste of buyer should not change
 3. Price of other goods should remain same
 4. No new substitutes for the commodity
 5. Price rise in future should not be expected
 6. Advertising expenditure should remain same.

9. 1. Price of commodity
2. Income of consumer
3. Taste and preference
4. Prices of related goods
5. Advertisements
6. Consumer expectations
7. Growth of population
8. Weather condition

10. 9. Tax rate
10. Availability of credit
11. Pattern of saving
12. Circulation of money

11. a) Conspicuous goods
b) Necessities of life
c) Giffen’s goods
d) Future expectations about prices
e) Impulsive purchases
f) Ignorance effects

12.  Sales forecasting
 Pricing decision
 Marketing decision
 Production decisions
 Financial decisions