SlideShare a Scribd company logo
DEMAND
ANALYSIS
Dr.M.Madavan
How Demand Arises?
•Desire for the commodity
•Adequate Purchasing Power,
and
•Willingness to Pay the price
Further Demand relates to . . .
•Time
•Price
Law of Demand
Marshall defines …..
• “The greater the amount to be sold, the smaller must
me the price at which it is offered in order that it may
find purchasers”
Demand Schedule
• It is a table or statement showing how much of a
commodity is demanded (purchased) in a particular
market at different prices.
Individual demand schedule for
butter
Price of butter per Kg.
(in Rupees)
Qualntity of butter demanded
In Kgs. Per month
20 1
18 2
16 3
14 4
12 5
10 6
Market demand schedule for butter
Price of butter per Kg.
(in Rupees)
Qualntity of butter demanded
In Kgs. Per month
20 20000
18 25000
16 30000
14 35000
12 40000
10 50000
Demand Curve
Y
D
PRICE
D
0 DEMAND X
Factors influencing Demand
• Number of consumers in the Market
• Level of income and wealth of the consumers
• Tastes, Preferences, Customs, habits of the consumers
• Existence of substitutes for a commodity
• Expectation of the consumers
• Commodity with Prestige value
• Changes due to weather
Types of Demand
• Price Demand
• Express the relationship between price and Demand. A change in price leads to the change
in demand
• Income Demand
• Express the relationship between Income and Demand. A change in income leads to the
change in demand
• For Normal commodity
• When income increases demand will also increase. It is a positive relationship
• For Inferior Commodity
• When income increases the demand for inferior goods will reduce. It is a negative relationship
• Cross Demand
• When income of one product increase, the demand for another product will increase. Ex. :
When price of coffee increase, the demand for Tea increases.
Price Demand
• Express the relationship between price
and Demand. A change in price leads to
the change in demand.
Income Demand
• Express the relationship between Income and Demand. A
change in income leads to the change in demand
• For Normal commodity
• When income increases demand will also increase. It is a
positive relationship
• For Inferior Commodity
• When income increases the demand for inferior goods
will reduce. It is a negative relationship
Types of Demand
• Cross Demand
• When income of one product increase, the
demand for another product will increase.
• Ex. : When price of coffee increase, the demand
for Tea increases.
THANK YOU
manimadhavan@gmail.com
9865210146

More Related Content

Similar to Demand analysis

Demand factors
Demand factorsDemand factors
Demand factors
kellycrowell
 
Demand analysis
Demand analysisDemand analysis
Demand analysis
jyyothees mv
 
Economics chapter 3
Economics chapter 3Economics chapter 3
Economics chapter 3
Autumn Bilbao
 
Economics ch3
Economics ch3Economics ch3
Economics ch3
Autumn Bilbao
 
Demand (for AP)
Demand (for AP)Demand (for AP)
Demand (for AP)
Matthew Caggia
 
16.terms used in_economics_viz_demand_and_supply_
16.terms used in_economics_viz_demand_and_supply_16.terms used in_economics_viz_demand_and_supply_
16.terms used in_economics_viz_demand_and_supply_
Noshad Ahmed Wahocho
 
PPT Demand & Supply.pptx
PPT Demand & Supply.pptxPPT Demand & Supply.pptx
PPT Demand & Supply.pptx
VijayaLakshmiPS3
 
Demand analysis ppts
Demand  analysis pptsDemand  analysis ppts
Demand analysis ppts
giripratibha
 
Unit 2 supply and demand f 2019
Unit 2  supply and demand f 2019Unit 2  supply and demand f 2019
Unit 2 supply and demand f 2019
AngelaWard43
 
Demand analysis
Demand analysisDemand analysis
Demand analysis
DrSelvamohanaK
 
DEMAND AND ELASTICITY OF DEMAND.pptx
DEMAND AND ELASTICITY OF DEMAND.pptxDEMAND AND ELASTICITY OF DEMAND.pptx
DEMAND AND ELASTICITY OF DEMAND.pptx
ArjavJain69
 
Lect 9.pptx
Lect 9.pptxLect 9.pptx
Lect 9.pptx
SayaleeSalunkhe
 
Lecture2
Lecture2Lecture2
Lecture2
sairamushtaq786
 
Module 2 Demand Analysis (1).pptx
Module 2 Demand Analysis (1).pptxModule 2 Demand Analysis (1).pptx
Module 2 Demand Analysis (1).pptx
Nallabothulakruthi
 
Lecture 3 understanding demand
Lecture 3 understanding demandLecture 3 understanding demand
Lecture 3 understanding demand
Mohammed Shefin
 
Price Determination
Price DeterminationPrice Determination
Price Determination
Mark Jason Alcantara
 
DEMAND AND SUPPLY THEORY AND MARKET EQUILIBRIUM
DEMAND AND SUPPLY THEORY AND MARKET EQUILIBRIUMDEMAND AND SUPPLY THEORY AND MARKET EQUILIBRIUM
DEMAND AND SUPPLY THEORY AND MARKET EQUILIBRIUM
RebekahSamuel2
 
Demand
DemandDemand
Demand
kumar gaurav
 
Supply demand
Supply demandSupply demand
Supply demand
MakrandGondhali
 
Economics3:4
Economics3:4Economics3:4
Economics3:4
ewaszolek
 

Similar to Demand analysis (20)

Demand factors
Demand factorsDemand factors
Demand factors
 
Demand analysis
Demand analysisDemand analysis
Demand analysis
 
Economics chapter 3
Economics chapter 3Economics chapter 3
Economics chapter 3
 
Economics ch3
Economics ch3Economics ch3
Economics ch3
 
Demand (for AP)
Demand (for AP)Demand (for AP)
Demand (for AP)
 
16.terms used in_economics_viz_demand_and_supply_
16.terms used in_economics_viz_demand_and_supply_16.terms used in_economics_viz_demand_and_supply_
16.terms used in_economics_viz_demand_and_supply_
 
PPT Demand & Supply.pptx
PPT Demand & Supply.pptxPPT Demand & Supply.pptx
PPT Demand & Supply.pptx
 
Demand analysis ppts
Demand  analysis pptsDemand  analysis ppts
Demand analysis ppts
 
Unit 2 supply and demand f 2019
Unit 2  supply and demand f 2019Unit 2  supply and demand f 2019
Unit 2 supply and demand f 2019
 
Demand analysis
Demand analysisDemand analysis
Demand analysis
 
DEMAND AND ELASTICITY OF DEMAND.pptx
DEMAND AND ELASTICITY OF DEMAND.pptxDEMAND AND ELASTICITY OF DEMAND.pptx
DEMAND AND ELASTICITY OF DEMAND.pptx
 
Lect 9.pptx
Lect 9.pptxLect 9.pptx
Lect 9.pptx
 
Lecture2
Lecture2Lecture2
Lecture2
 
Module 2 Demand Analysis (1).pptx
Module 2 Demand Analysis (1).pptxModule 2 Demand Analysis (1).pptx
Module 2 Demand Analysis (1).pptx
 
Lecture 3 understanding demand
Lecture 3 understanding demandLecture 3 understanding demand
Lecture 3 understanding demand
 
Price Determination
Price DeterminationPrice Determination
Price Determination
 
DEMAND AND SUPPLY THEORY AND MARKET EQUILIBRIUM
DEMAND AND SUPPLY THEORY AND MARKET EQUILIBRIUMDEMAND AND SUPPLY THEORY AND MARKET EQUILIBRIUM
DEMAND AND SUPPLY THEORY AND MARKET EQUILIBRIUM
 
Demand
DemandDemand
Demand
 
Supply demand
Supply demandSupply demand
Supply demand
 
Economics3:4
Economics3:4Economics3:4
Economics3:4
 

More from Dr. Mani Madhavan

Computer applications in economics UNIT - II
Computer applications in economics   UNIT - IIComputer applications in economics   UNIT - II
Computer applications in economics UNIT - II
Dr. Mani Madhavan
 
Computer applications in economics unit - 1
Computer applications in economics   unit - 1Computer applications in economics   unit - 1
Computer applications in economics unit - 1
Dr. Mani Madhavan
 
பொருளாதார அளவையியல் அறிமுகம் - Econometrics an Introduction
பொருளாதார அளவையியல்   அறிமுகம் - Econometrics an Introductionபொருளாதார அளவையியல்   அறிமுகம் - Econometrics an Introduction
பொருளாதார அளவையியல் அறிமுகம் - Econometrics an Introduction
Dr. Mani Madhavan
 
Women empowerment–unit ii - conceptual framework
Women empowerment–unit ii - conceptual frameworkWomen empowerment–unit ii - conceptual framework
Women empowerment–unit ii - conceptual framework
Dr. Mani Madhavan
 
Women empowerment unit-iii- Problems and Challenges in india
Women empowerment unit-iii- Problems and Challenges in indiaWomen empowerment unit-iii- Problems and Challenges in india
Women empowerment unit-iii- Problems and Challenges in india
Dr. Mani Madhavan
 
Women empowerment i unit
Women empowerment i unitWomen empowerment i unit
Women empowerment i unit
Dr. Mani Madhavan
 
Women empowerment unit-iv - laws related to women empowerment
Women empowerment unit-iv - laws related to women empowermentWomen empowerment unit-iv - laws related to women empowerment
Women empowerment unit-iv - laws related to women empowerment
Dr. Mani Madhavan
 
Criteria for NAAC Accreditation
Criteria for NAAC AccreditationCriteria for NAAC Accreditation
Criteria for NAAC Accreditation
Dr. Mani Madhavan
 
IQAC - QUALITY AND FILE MANAGEMENT
IQAC - QUALITY AND FILE MANAGEMENTIQAC - QUALITY AND FILE MANAGEMENT
IQAC - QUALITY AND FILE MANAGEMENT
Dr. Mani Madhavan
 
International economics Unit - V
International economics   Unit - VInternational economics   Unit - V
International economics Unit - V
Dr. Mani Madhavan
 
Economic aspect of human development index
Economic aspect of human development indexEconomic aspect of human development index
Economic aspect of human development index
Dr. Mani Madhavan
 
Financial theory of investment
Financial theory of investmentFinancial theory of investment
Financial theory of investment
Dr. Mani Madhavan
 
International Trade
International TradeInternational Trade
International Trade
Dr. Mani Madhavan
 
Demand for money
Demand for moneyDemand for money
Demand for money
Dr. Mani Madhavan
 
Trade cycle
Trade cycleTrade cycle
Trade cycle
Dr. Mani Madhavan
 
Production function
Production functionProduction function
Production function
Dr. Mani Madhavan
 
Law of returns
Law of returnsLaw of returns
Law of returns
Dr. Mani Madhavan
 
Supply theory
Supply theorySupply theory
Supply theory
Dr. Mani Madhavan
 
Break even analysis
Break even analysisBreak even analysis
Break even analysis
Dr. Mani Madhavan
 
Development Banks - tamil ppt
Development Banks - tamil pptDevelopment Banks - tamil ppt
Development Banks - tamil ppt
Dr. Mani Madhavan
 

More from Dr. Mani Madhavan (20)

Computer applications in economics UNIT - II
Computer applications in economics   UNIT - IIComputer applications in economics   UNIT - II
Computer applications in economics UNIT - II
 
Computer applications in economics unit - 1
Computer applications in economics   unit - 1Computer applications in economics   unit - 1
Computer applications in economics unit - 1
 
பொருளாதார அளவையியல் அறிமுகம் - Econometrics an Introduction
பொருளாதார அளவையியல்   அறிமுகம் - Econometrics an Introductionபொருளாதார அளவையியல்   அறிமுகம் - Econometrics an Introduction
பொருளாதார அளவையியல் அறிமுகம் - Econometrics an Introduction
 
Women empowerment–unit ii - conceptual framework
Women empowerment–unit ii - conceptual frameworkWomen empowerment–unit ii - conceptual framework
Women empowerment–unit ii - conceptual framework
 
Women empowerment unit-iii- Problems and Challenges in india
Women empowerment unit-iii- Problems and Challenges in indiaWomen empowerment unit-iii- Problems and Challenges in india
Women empowerment unit-iii- Problems and Challenges in india
 
Women empowerment i unit
Women empowerment i unitWomen empowerment i unit
Women empowerment i unit
 
Women empowerment unit-iv - laws related to women empowerment
Women empowerment unit-iv - laws related to women empowermentWomen empowerment unit-iv - laws related to women empowerment
Women empowerment unit-iv - laws related to women empowerment
 
Criteria for NAAC Accreditation
Criteria for NAAC AccreditationCriteria for NAAC Accreditation
Criteria for NAAC Accreditation
 
IQAC - QUALITY AND FILE MANAGEMENT
IQAC - QUALITY AND FILE MANAGEMENTIQAC - QUALITY AND FILE MANAGEMENT
IQAC - QUALITY AND FILE MANAGEMENT
 
International economics Unit - V
International economics   Unit - VInternational economics   Unit - V
International economics Unit - V
 
Economic aspect of human development index
Economic aspect of human development indexEconomic aspect of human development index
Economic aspect of human development index
 
Financial theory of investment
Financial theory of investmentFinancial theory of investment
Financial theory of investment
 
International Trade
International TradeInternational Trade
International Trade
 
Demand for money
Demand for moneyDemand for money
Demand for money
 
Trade cycle
Trade cycleTrade cycle
Trade cycle
 
Production function
Production functionProduction function
Production function
 
Law of returns
Law of returnsLaw of returns
Law of returns
 
Supply theory
Supply theorySupply theory
Supply theory
 
Break even analysis
Break even analysisBreak even analysis
Break even analysis
 
Development Banks - tamil ppt
Development Banks - tamil pptDevelopment Banks - tamil ppt
Development Banks - tamil ppt
 

Recently uploaded

How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
beulahfernandes8
 
How to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete GuideHow to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete Guide
Daniel
 
PM pre reads for the product manager framework
PM pre reads for the product manager frameworkPM pre reads for the product manager framework
PM pre reads for the product manager framework
KishoreKatta6
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
ynfqplhm
 
The Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptxThe Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptx
Diana Rose
 
Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]
Commonwealth
 
Economic trends from a business point of view (May 2024)
Economic trends from a business point of view (May 2024)Economic trends from a business point of view (May 2024)
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
Commonwealth
 
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdfMacroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
olaola5673
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
ResolutionFoundation
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
taqyea
 
KYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksKYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
KYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
Any kyc Account
 
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
asukqco
 
Understanding-Stocks-and-Real-Estate.pptx
Understanding-Stocks-and-Real-Estate.pptxUnderstanding-Stocks-and-Real-Estate.pptx
Understanding-Stocks-and-Real-Estate.pptx
cosmo-soil
 
Seven Camp April 2024 Cohort Booklet.pdf
Seven Camp April 2024 Cohort Booklet.pdfSeven Camp April 2024 Cohort Booklet.pdf
Seven Camp April 2024 Cohort Booklet.pdf
FinTech Belgium
 
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
mukeshomran942
 
13 Jun 24 ILC Retirement Income Summit - slides.pptx
13 Jun 24 ILC Retirement Income Summit - slides.pptx13 Jun 24 ILC Retirement Income Summit - slides.pptx
13 Jun 24 ILC Retirement Income Summit - slides.pptx
ILC- UK
 
10 geo ch 7 lifelines of economy and studies
10 geo ch 7 lifelines of economy and studies10 geo ch 7 lifelines of economy and studies
10 geo ch 7 lifelines of economy and studies
RhemanRaphael
 
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
nimaruinazawa258
 
Discover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive GuidanceDiscover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive Guidance
36 Crypto
 

Recently uploaded (20)

How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...
 
How to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete GuideHow to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete Guide
 
PM pre reads for the product manager framework
PM pre reads for the product manager frameworkPM pre reads for the product manager framework
PM pre reads for the product manager framework
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
 
The Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptxThe Rise and Fall of Ponzi Schemes in America.pptx
The Rise and Fall of Ponzi Schemes in America.pptx
 
Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]
 
Economic trends from a business point of view (May 2024)
Economic trends from a business point of view (May 2024)Economic trends from a business point of view (May 2024)
Economic trends from a business point of view (May 2024)
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
 
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdfMacroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
 
KYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksKYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
KYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
 
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
 
Understanding-Stocks-and-Real-Estate.pptx
Understanding-Stocks-and-Real-Estate.pptxUnderstanding-Stocks-and-Real-Estate.pptx
Understanding-Stocks-and-Real-Estate.pptx
 
Seven Camp April 2024 Cohort Booklet.pdf
Seven Camp April 2024 Cohort Booklet.pdfSeven Camp April 2024 Cohort Booklet.pdf
Seven Camp April 2024 Cohort Booklet.pdf
 
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
欧洲杯足彩-欧洲杯足彩押注-欧洲杯足彩押注官网|【​网址​🎉ac99.net🎉​】
 
13 Jun 24 ILC Retirement Income Summit - slides.pptx
13 Jun 24 ILC Retirement Income Summit - slides.pptx13 Jun 24 ILC Retirement Income Summit - slides.pptx
13 Jun 24 ILC Retirement Income Summit - slides.pptx
 
10 geo ch 7 lifelines of economy and studies
10 geo ch 7 lifelines of economy and studies10 geo ch 7 lifelines of economy and studies
10 geo ch 7 lifelines of economy and studies
 
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
 
Discover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive GuidanceDiscover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive Guidance
 

Demand analysis

  • 2. How Demand Arises? •Desire for the commodity •Adequate Purchasing Power, and •Willingness to Pay the price
  • 3. Further Demand relates to . . . •Time •Price
  • 4. Law of Demand Marshall defines ….. • “The greater the amount to be sold, the smaller must me the price at which it is offered in order that it may find purchasers”
  • 5. Demand Schedule • It is a table or statement showing how much of a commodity is demanded (purchased) in a particular market at different prices.
  • 6. Individual demand schedule for butter Price of butter per Kg. (in Rupees) Qualntity of butter demanded In Kgs. Per month 20 1 18 2 16 3 14 4 12 5 10 6
  • 7. Market demand schedule for butter Price of butter per Kg. (in Rupees) Qualntity of butter demanded In Kgs. Per month 20 20000 18 25000 16 30000 14 35000 12 40000 10 50000
  • 9. Factors influencing Demand • Number of consumers in the Market • Level of income and wealth of the consumers • Tastes, Preferences, Customs, habits of the consumers • Existence of substitutes for a commodity • Expectation of the consumers • Commodity with Prestige value • Changes due to weather
  • 10. Types of Demand • Price Demand • Express the relationship between price and Demand. A change in price leads to the change in demand • Income Demand • Express the relationship between Income and Demand. A change in income leads to the change in demand • For Normal commodity • When income increases demand will also increase. It is a positive relationship • For Inferior Commodity • When income increases the demand for inferior goods will reduce. It is a negative relationship • Cross Demand • When income of one product increase, the demand for another product will increase. Ex. : When price of coffee increase, the demand for Tea increases.
  • 11. Price Demand • Express the relationship between price and Demand. A change in price leads to the change in demand.
  • 12. Income Demand • Express the relationship between Income and Demand. A change in income leads to the change in demand • For Normal commodity • When income increases demand will also increase. It is a positive relationship • For Inferior Commodity • When income increases the demand for inferior goods will reduce. It is a negative relationship
  • 13. Types of Demand • Cross Demand • When income of one product increase, the demand for another product will increase. • Ex. : When price of coffee increase, the demand for Tea increases.