1) Demand is defined as the desire, ability, and willingness to purchase a good or service. It is influenced by factors like price, income, utility, habits, fashion, weather, advertising, taxation, and speculation. 2) The law of demand states that, all else equal, demand decreases when price increases as consumers will purchase less of a good, and demand increases when price decreases as consumers will buy more. 3) For the law of demand to hold true, there should be no changes in consumer income, preferences, prices of related goods, expectations of future prices, or other economic conditions like the quantity of money, taxes, or climate.

1. Presented by-

2. Demand
 whenever desire for anything is backed by
ability and wlilingness to pay for that thing it
flows out in the form of effective demand.
1 ) desire to puchased
2 ) ability to pay
3 ) willingness to spent
 DEMAND = DESIRE + ABILITY TO PURCHASED + WILLINGNESS TO
SPENT

3. FACTOR INFLUENCING DEMAND
1. Price
2. Income
3. Utility
4. Habits
5. Fashion
6. Weather Condition
7. Advertisement
8. Taxation
9. Speculation

4. The Law of Demand
OTHER THINGS BEING EQUAL , THE
DEMAND IS HIGHER WITH THE FALL
IN PRICE , AND DIMINISHES WITH RISE
IN PRICE.
- PRO. MARSHALL
– The reverse is also true:
as the price of a good or service falls, quantity demanded
increases.

5. SCHEDULE AND DIAGRAM OF
LAW OF DEMAND

6. ASSUMPTION
1. No Change In Consumer Income
2. No Change In Consumer Preference
3. No Change In Fashion
4. No Change In Price Of Related Goods
5. No Expectation Of Future Price Changes
6. Income And Wealth
7. Quantity Of Money
8. Level Of Taxes
9. Climate Condition

7. EXCEPTIONS
1. Inferior Goods
2. Speculation
3. Prestigeous Goods
4. Illusion
5. Fashion
6. Quality Of Branded Goods