The presentation discusses the determinants of demand. It defines demand as consumers' willingness and ability to consume a given good, and notes that quantity demanded generally decreases with price increases and increases with price decreases, following the law of demand. The determinants of demand - factors that can shift the demand curve - are divided into pricing factors like changes in factor prices, and non-pricing factors such as changes in income, tastes, prices of related goods, and expectations. Non-pricing factors are discussed further with examples of how changes can increase or decrease demand.

1. PRESENTATION ON ECONOMICS
DETERMINANTS OF DEMAND
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Prakhar Omar
PIBM, Pune
2017-19
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2. WHAT IS DEMAND ?
• Demand in economics is defined as
consumers' willingness and ability to consume
a given good. An increase in price will decrease
the quantity demanded of most goods. A
decrease in price will increase the quantity
demanded of most goods.
LAW OF DEMAND
• The Law of demand states that ceteris paribus, there
is an inverse relationship between price and quantity
demanded.

3. DETERMINANTS OF DEMAND
• When factors other than price changes, demand curve will shift. These are the
determinants of the demand curve
DETERMINANTS
OF DEMAND
PRICING
FACTOR
NON-PRICING
FACTOR

4. PRICING FACTOR
A
B
4.0
2012
2.0
CHANGE IN QUANTITY DEMAND
Factor Price. The price at which the means of
production (that is, land, labor, capital and
sometimes entrepreneurship) are sold. Economists
disagree about what determines factor prices

5. NON-PRICING FACTOR
INCREASE
IN DEMAND
DECREASE
IN DEMAND
QUANTITY
PRICE
D1D2D3O
Non-price competition is a marketing
strategy "in which one firm tries to
distinguish its product or service from
competing products on the basis of attributes
like design and workmanship