Demand, a crucial concept of Managerial Economics. What is it, why and how is it to tbe measured?

1. Demand
Meaning
Determinants of demand | Demand Function
Types of Demand
Law of Demand | Demand Theory

2. Demand DESIRE TO BUY
ABILITY TO PAY
WILLINGNESS TO PAY

3. Requisites
B A C K E D U P B Y A D E Q U A T E
P U R C H A S I N G P O W E R
Customer must have money to pay
A L W A Y S A T A P R I C E
Anything for free has infinite demand
A L W A Y S B E E X P R E S S E D I N
T E R M S O F S P E C I F I C
Q U A N T I T Y
Has to be shown in numbers only
¢R E L A T E D T O T I M E
Calculated for a time period

4. T H E D E M A N D F O R A P A R T I C U L A R G O O D I S T H E A M O U N T
T H A T W I L L B E P U R C H A S E D A T A G I V E N P R I C E A N D A T A
G I V E N T I M E .
Veera Anstey
T H E D E M A N D F O R A N Y T H I N G , A T A G I V E N P R I C E , I S T H E
A M O U N T O F I T W H I C H W I L L B E B O U G H T P E R U N I T O F T I M E
A T T H A T P R I C E
Benhaur
D E M A N D I S D E F I N E D A S T H E A M O U N T O F C O M M O D I T Y O R
S E R V I C E B O U G H T P E R U N I T O F T I M E A T A G I V E N P R I C E
Edward

5. CIRCULAR FLOW OF MONEY

6. The Ripple Effect of the Economy
FUNCTION /
DEPARTMENT
COMPANY /
ORGANISATION
INDUSTRY
ECONOMY

7. DETERMINANTS OF DEMAND
PRICE OF RELATED
COMMODITY
TASTE AND
PREFERENCE
PRICE OF THE
COMMODITY
PRICE
EXPECTATION
IN FUTURE
INCOME OF
CONSUMER

8. Types of Demand
P R I C E D E M A N D
Price and quantity
demanded
C R O S S D E M A N D
Price of related
commodity and
quantity demanded
I N C O M E D E M A N D
Income of consumer
and quantity demanded

9. Relationship
between Price
of the
Commodity and
the quantity
demanded
PRICE
DEMAND

10. Relationship
between Price
of the Related
Commodity
and
the quantity
demandedCROSS
DEMAND

11. Relationship
between
Income of
Consumer and
the quantity
demanded
INCOME
DEMAND

12. Law of Demand | Demand Theory
Statement of the law
Assumptions
Explanation (using Example)
Demand Schedule
Demand Curve | Graphical representation
Conclusion
Exceptions

13. Statement of the law
Any commodity will be sold more
at a lower price than that of
higher price

14. Innovation distinguishes
between a leader and a
follower.
S T E V E J O B SExplanation