This document defines demand and discusses its key elements and determinants. Demand can be defined as the desire to purchase a good, having sufficient money to purchase it, and a willingness to spend the money. An individual's demand is determined by price of the good, income of the customer, prices of other goods, tastes, and expectations. Market demand is determined by all of these factors in addition to population, government policy, season, climate, and income distribution in the market. Demand schedules and curves are used to illustrate the relationship between price and quantity demanded at the individual and market levels.

1. DEZYNE E’COLE COLLEGE
www.dezynecoleecole.com
SUNIL SINGH
BBA 2ND SEM
THEORY OF DEMANDMICRO ECONOMICS

2. DEMAND :- HENCE DEMAND CAN BE DEFINED THE DESIRE TO PURCHASE, ENOUGH MONEY TO PURCHASE AND
READY TO SPEND MONEY.
ELEMENTS OF DEMAND
DESIRE TO GET COMMODITY
REQUIRED MONEY TO FULFILL THE DESIRE
READINESS TO SPEND THE MONEY

3. DEMAND SCHEDULE
INDIVIDUAL DEMAND SCHEDULE

4. MARKET DEMAND SCHEDULE

5. DEMAND CURVE
INDIVIDUAL DEMAND CURVE
X
Y
1 2 3
0123
PRICE
QTY

6. MARKET DEMAND CURVE
1 2 3 4 5 6 7 8 9
01234
PRICE
QTY
X
Y

7. DETERMINANTS OF DEMAND
INDIVIDUAL DEMAND FUNCTION
D X = F ( P, P O, Y, T, E )
DX = DEMAND OF X COMMODITY
F = FUNCTION
P = PRICE OF THE COMMODITY
PO = PRICE OF OTHER COMMODITIES
Y = INCOME OF CUSTOMER
T = TASTE OF CUSTOMER
E = POSSIBILITIES / EXPECTATIONS

8. MARKET DEMAND FUNCTION
MKT. DX = F (P, PO , Y, T, E, N, G, S, YD )
MKT. DX = MARKET DEMAND
F = FUNCTION
P = PRICE OF COMMODITY
Y = INCOME OF CUSTOMER
PO = PRICE OF OTHER COMMODITIES
YD = DISTRIBUTION OF INCOME
T = TASTE
E = EXPECTATIONS
N = POPULATION
G = GOVT. POLICY
S = SEASON & CLIMATE