The Concept of Demand on Managerial Economics

1. The Concept of Demand on
Managerial Economics
Course: Managerial Economics

2. Shahabul Hossain
192005024

3. Demand
3
Total quantity customers are willing and able to
purchase under various market conditions.
Conditions are:
 Want to buy
 Able to purchase
 Planning to Purchase

4. Law of Demand
4
The Law of Demand is a basic economic hypothesis
which states that there is a negative relationship
between quantity demanded and price.
Higher the Price – Lower the Demand

5. Types of Demand
5
Market demand: Market demand is the aggregate of
individual, or personal demand.
Direct Demand: Demand for personal consumption
products.
Derived Demand: Demand for inputs used in production.

6. Determinants of Demand
In functional form, a demand function may be
expressed as;
Quantity of Product Y Demanded = f (Price of Y,
Prices of Related Products, Income, Advertising, and
so on.)

7. Factors Influencing Demand
 Price of a Product or Service
 Income
 Tastes and Preferences of Consumers
 Price of Related Goods:
I. a. Substitute goods
II. b. Complement goods

8. Factors Influencing Demand
 Expectation of future:
I. Future Price
II. Future Income
 Effect of Advertisements
 Number of consumers in a market
So here, Demand Function is:
D = f (P, I, CP, PRG, EF, A)

9. Demand Curve
Pice $
Quantity
Demand Curve

10. THANK YOU!