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https://youtu.be/_z3pl85hwoY
Watch the complete video lecture in Hindi/Urdu via the above link.
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Law of demand & demand curves/ Change in demand vs change in quantity demanded.pptx
1. Law of Demand and Demand Curves
Change in Demand
Vs
Change in Quantity
Demanded
2. The law of demand states that there is a negative, or inverse, relationship between price and the
quantity of a good demanded.
This means that demand curves slope downward.
The Law of Demand
The demand curve is a graph illustrating how much of a given
product/service a household would be willing to buy at different prices.
Determinants of Demand
▪ Price of the product
▪ The income available
▪ Prices of related products
▪ Consumer’s taste and preferences
3. A change in demand is not the same as a change in quantity demanded.
In this example, a higher price causes lower quantity demanded.
Changes in determinants of demand, other than price, cause a change in
demand, or a shift of the entire demand curve, from DA to DB.
Change in Demand Vs Change in Quantity Demanded
When demand shifts to the right,
demand increases. This causes quantity
demanded to be greater than it was prior
to the shift, for each and every price
level.
4. Change in price of a good or service
leads to
Change in quantity demanded
(Movement along the curve).
Change in income, preferences, or
prices of other goods or services
leads to
Change in demand
(Shift of curve).
Change in Demand Vs Change in Quantity Demanded
5. NORMAL GOODS
Are goods for which demand goes up when income is higher and for which demand
goes down when income is lower.
✔ Food
✔ Clothing
✔ Entertainment
✔ Home Appliances
Income is 100 $
Income is 200 $