This document discusses the concept of demand in economics. It defines demand as a desire for a commodity backed by the ability and willingness to pay the price. The law of demand is then introduced, which states that, all other factors remaining constant, the quantity demanded of a good rises when its price falls and falls when its price rises. The assumptions and exceptions of the law of demand are also outlined.

1. Dr. Medhavini S Katti
Assistant Professor in Economics
Govt. First Grade College Shahapur
Dist: Yadgir

2. Demand
 In ordinary language the word demand means desire. But
mere desire does not constitute demand in economic sense.
 A person with a low income may desire to have car or a
decent house, but this does not constitute a demand for a
car or a house. Because that person has no adequate
income to purchase either of them. In other words, he has
no ability to purchase either a car or house.
 Further mere ability of a person to purchase a thing also
does not constitute a demand for it. A rich man is able to
purchase a car or a house, but if he is not willing to
purchase it, then he desire will not become a demand.

3.  therefore, in order to convert the desire into effective
demand, it is essential that, his desire be backed up by
ability and willingness to pay the price.
 Thus, demand it implies 3 conditions
 1. desire for a commodity
 2. Ability to pay the price of it
 3. willingness to purchase the things
Meaning of the demand
Demand for any commodity may be defined as a desire
for that commodity backed up by ability to pay the price
and willingness to purchase the things

4. The Law of Demand
The Law of Demand expresses the functional relationship
between the price of the commodity and its quantity
demanded in the market
The law of demand may be defined as “other things being
equal”. The amount of commodity demanded increase's with
every fall in its price and diminishes with every raise in price.
Thus the quantity of a commodity demanded varied inversely
with its price. Simply its means that people purchase more of
a commodity when its price rises.

5. Assumptions of the law
1. There is no change in the price of a commodity
2. There is no change in the market conditions
3. There is no change in the supply of commodity
4. There is no change in the population
5. There no changes in the taste and preference

6. Individual Demand Schedule
This table shows price and quantity of X commodity
demanded by an individual consumer. It shows the tendency
of the consumer buying more at lower price and less at a
higher price
Price of X Commodity Quantity Demanded
5 2
4 4
3 6
2 8
1 10

7. On the basis of the above demand schedule we can draw
the demand curve of the consumer for X commodity.

8. Exceptions of the law of demand
1. Ignorance of consumer
2. In times of scarcity
3. Demand for necessaries
4. Demand for prestige goods
5. Demand for Griffin's goods
6. Highly priced goods