Ppt on Demand Analysis, Presentation on Demand Analysis, Managerial economics, Meaning of Demand, definition of demand, Types of demand, Determinants of demand, Law of demand, Factors behind law of demand, Changes in quantity demanded, Changes in demand.

1. Managerial Economics
Demand Analysis
Presented by: Leena Gauraha
Guided By: Nikhat Anjum
M. Com: Ist Semester
Vivekanand Mahavidyalaya

2. Introduction:
 “Demand means effective desire or want for a commodity
which is backed up by the ability (purchasing power) and
willingness to pay for it.
 Demand = Desire + ability to pay + willingness to spend.
 Demand is relative concept, Not Absolute, and it is
related to price, time and place.
“the demand for a commodity refers to the amount of it
which will be bought per unit of time at a particular price (at
a particular market)”.

3. Individual and market demand:
 Individual demand: individual demand for a product is the
quantity of it a consumer would buy at a given price , during
a given period of time.
 Market demand: market demand for a product is the total
demand of all the buyers in the market taken together at a
given price during a given period of time.

4. Types of demand:
1) Individual demand & Market demand.
2) Demand for capital goods & Demand for consumer goods.
3) Autonomous demand and derived demand.
4) Demand for durable and non durable goods.
5) Short term demand and Long term demand.

5. Determinants of demand:
 Price of the product
 Price of the related goods
 Consumer’s Income level
 Distribution pattern of national income.
 Consumer’s taste and preferences
 Consumer’s expectations

6. Law of demand:
 “Other things being equal, the higher the price of a
commodity, the smaller is the quantity demanded and
lower the price, larger the quantity demanded.
Factors behind law of demand:
A) Substitution effect
B) Income effect
C) Utility maximising behaviour

7. Changes in quantity demanded:
 Change in quantity demanded is related to law of demand
i.e. due to change in price.
 When with fall in price more of a commodity is demanded,
there is EXTENSION of demand & when with a rise in
price less of a commodity is purchased, there is
CONTRACTION of demand.

8. Changes in demand:
 Changes in demand is caused by changes in various other
determinants of demand, the price remaining unchanged.
 When more of a commodity is bought than before at any
given price there is INCREASE in demand & when less of a
commodity is bought than before at any given price there is
DECREASE in demand.