Types of demand
•Download as PPTX, PDF•
1 like•245 views
This document discusses different types of demand, including: - Consumer vs producer demand, with consumer demand for necessities like rice and clothes, and producer demand for raw materials. - Autonomous vs derived demand, with autonomous demand based on human wants and derived demand dependent on another product's demand. - Durable vs perishable demand, with durable goods like appliances lasting long periods and perishable goods like vegetables lasting less than a day. - Short run vs long run demand, estimating demand over 6 months to 1 year for short run and over 1 year for long run. - New vs replacement demand, with new demand for novel products and replacement demand to maintain existing products. Factors influencing demand are also outlined
Report
Share
Report
Share
Recommended
Demand Analysis in Brief.
The demand concept is one of the part of Managerial Economics.
Demand Analysis is explained in simple and easy language.
DEMAND ,TYPES AND IT'S FUNCTIONS
The document discusses demand functions and different types of demand. It defines individual and market demand functions. Individual demand function shows how demand for a commodity relates to its price, income of the consumer, tastes and other factors. Market demand function adds population size and income distribution as additional factors. The document also outlines seven types of demand: direct vs derived, domestic vs industrial, autonomous vs induced, perishable vs durable goods, new vs replacement, final vs intermediate, and individual vs market demands.
THEORY OF PRODUCTION AND COST
This document provides an overview of production theory and costs. It defines production as the process of converting inputs into outputs. The relationship between inputs and outputs is represented by the production function. There are laws of variable proportions that describe how average and marginal productivity change with increasing input usage in the short-run. In the long-run, returns to scale can be increasing, constant, or decreasing. The document also defines different types of costs including fixed, variable, average, and marginal costs and how they change with output levels in the short-run.
Theory of production 2
The document discusses production theory, which forms the foundation of supply theory. It covers key concepts such as:
1) Short-run vs long-run production and the fixed and variable nature of inputs.
2) Production functions and the relationship between total, average, and marginal product.
3) The law of diminishing marginal returns and the three stages of production.
4) Isoquants, isocost lines, and how firms determine optimal input combinations to minimize costs.
Demand analysis
The “Demand” for a commodity, at a given price, is the quantity of it which will be bought per unit of time at that price.
In economics, demand refers to the buying behavior of a household. When desire is backed by willingness and ability to pay for a good or service then it becomes Demand for the good or service.
The theory of demand and supply
The document discusses the theory of demand and supply. It defines key concepts like demand, supply, equilibrium, and determinants. It explains the laws of demand and supply - that quantity demanded increases when price decreases and quantity supplied increases when price increases. The document also discusses how shifts in demand or supply curves impact equilibrium price and quantity in the market.
Law of demand
This document discusses the concepts of individual demand, market demand, and the assumptions of the law of demand. It provides examples of an individual demand schedule and curve for an individual named Adam. It then explains that market demand is the aggregate of individual demands. A market demand curve is created by horizontally summing individual demand curves. The market demand function is the horizontal summation of individual demand functions. Finally, it provides an example of how individual demand curves from three individuals (A, B, and C) can be summed to create a market demand curve.
THEORY OF DEMAND
This document discusses the theory of demand. It defines demand and outlines the law of demand, which states that as price increases, quantity demanded decreases, assuming other factors remain constant. It discusses individual and market demand schedules and curves. It also outlines several factors that influence demand, such as price, income, tastes, and the prices of substitutes and complements. Additionally, it discusses the concepts of change in quantity demanded versus change in demand, and explains the downward sloping nature of the demand curve. Finally, it covers price elasticity of demand, the factors that influence it, and its importance for pricing and revenue decisions.
Recommended
Demand Analysis in Brief.
The demand concept is one of the part of Managerial Economics.
Demand Analysis is explained in simple and easy language.
DEMAND ,TYPES AND IT'S FUNCTIONS
The document discusses demand functions and different types of demand. It defines individual and market demand functions. Individual demand function shows how demand for a commodity relates to its price, income of the consumer, tastes and other factors. Market demand function adds population size and income distribution as additional factors. The document also outlines seven types of demand: direct vs derived, domestic vs industrial, autonomous vs induced, perishable vs durable goods, new vs replacement, final vs intermediate, and individual vs market demands.
THEORY OF PRODUCTION AND COST
This document provides an overview of production theory and costs. It defines production as the process of converting inputs into outputs. The relationship between inputs and outputs is represented by the production function. There are laws of variable proportions that describe how average and marginal productivity change with increasing input usage in the short-run. In the long-run, returns to scale can be increasing, constant, or decreasing. The document also defines different types of costs including fixed, variable, average, and marginal costs and how they change with output levels in the short-run.
Theory of production 2
The document discusses production theory, which forms the foundation of supply theory. It covers key concepts such as:
1) Short-run vs long-run production and the fixed and variable nature of inputs.
2) Production functions and the relationship between total, average, and marginal product.
3) The law of diminishing marginal returns and the three stages of production.
4) Isoquants, isocost lines, and how firms determine optimal input combinations to minimize costs.
Demand analysis
The “Demand” for a commodity, at a given price, is the quantity of it which will be bought per unit of time at that price.
In economics, demand refers to the buying behavior of a household. When desire is backed by willingness and ability to pay for a good or service then it becomes Demand for the good or service.
The theory of demand and supply
The document discusses the theory of demand and supply. It defines key concepts like demand, supply, equilibrium, and determinants. It explains the laws of demand and supply - that quantity demanded increases when price decreases and quantity supplied increases when price increases. The document also discusses how shifts in demand or supply curves impact equilibrium price and quantity in the market.
Law of demand
This document discusses the concepts of individual demand, market demand, and the assumptions of the law of demand. It provides examples of an individual demand schedule and curve for an individual named Adam. It then explains that market demand is the aggregate of individual demands. A market demand curve is created by horizontally summing individual demand curves. The market demand function is the horizontal summation of individual demand functions. Finally, it provides an example of how individual demand curves from three individuals (A, B, and C) can be summed to create a market demand curve.
THEORY OF DEMAND
This document discusses the theory of demand. It defines demand and outlines the law of demand, which states that as price increases, quantity demanded decreases, assuming other factors remain constant. It discusses individual and market demand schedules and curves. It also outlines several factors that influence demand, such as price, income, tastes, and the prices of substitutes and complements. Additionally, it discusses the concepts of change in quantity demanded versus change in demand, and explains the downward sloping nature of the demand curve. Finally, it covers price elasticity of demand, the factors that influence it, and its importance for pricing and revenue decisions.
Utility
This document discusses the concept of utility in economics. It defines utility as the capacity of a good or service to satisfy human wants. The document outlines several key characteristics of utility, including that it is psychological, individual, relative, and cannot be objectively measured. It also discusses different types of utility related to production and consumption, including form utility, place utility, time utility, service utility, marginal utility, total utility, and average utility. The relationship between marginal utility and total utility is explored, noting that total utility is maximized when marginal utility reaches zero.
Utility
This document defines and explains the economic concept of utility. It begins by defining utility as the ability of a commodity to satisfy human needs. It then discusses how different commodities provide different levels of utility to different people in different situations. It also explains that marginal utility decreases with increasing consumption of a good while total utility increases at a decreasing rate. The document provides examples and formulas to illustrate these concepts. It concludes by discussing the determinants and assumptions of demand and how the law of demand states that demand curves will slope downward, showing an inverse relationship between price and quantity demanded.
Law of variable proportion
Isoquant is also called as equal product curve or production indifference curve or constant product curve. Isoquant indicates various combinations of two factors of production which give the same level of output per unit of time.
Just as an indifference curve represents various combinations of two goods which give a consumer equal amount of satisfaction, an iso-product curve shows all possible combinations of two inputs physically capable of producing a given level of output. Since an iso-product curve represents those combinations which will result in the production of an equal quantity of output, the producer would be indifferent between them.
This law was given by Alfred Marshall in his book principle of economics.
It show particular pattern of change in output when some factor remain fixed.
Production depend upon factors of production , if factors of production are good, production may increase and vice-versa.
Production function show functional relationship between production and factors of production.
It refers to manner of change in output cost by the increase in all the input simultaneously and in the same proportion.
Returns refers to “change in physical output”
Scale refers to “quantity of input employed”
Change in scale means that all factors of production are increased or decreased in same proportion.
The cost advantage that arises with increased output of a product.
It arises because of the inverse relationship between the quantity produced and per-unit fixed cost.
Profit refers to the excess of receipts from the sale of goods over the expenditure incurred on producing them.
The amount received from the sale of goods is known as ‘revenue’ and the expenditure on production of such goods is termed as ‘cost’. The difference between revenue and cost is known as ‘profit’.
For example, if a firm sells goods for Rs. 10 crores after incurring an expenditure of Rs. 7 crores, then profit will be Rs. 3 crores.
Long Run Cost Function
In the long-run a firm can amend its size and organization to violate demand conditions. In other words, in the long-run the firm can adjust its scale of operations or size of plant to produce any required output in the most efficient way. Thus, in the long run fixed factors can be altered. Management can be restructured to run a firm of a different size. Capital can also be used differently. In short, all factors are variable in the long run and therefore the scale of operations can be altered
Cost and revenue analysis
The document discusses concepts related to cost and revenue analysis. It defines costs as expenses incurred to produce output and categorizes them as economic or accounting costs. It also discusses the differences between fixed, variable, total, average, and marginal costs in the short and long run. The document also defines revenue as the money received from sales and discusses concepts like total, average, and marginal revenue. Finally, it discusses the relationship between costs, revenue, and profit and how businesses aim to maximize profit.
Demand.
This document discusses demand, factors that affect demand, and the elasticity of demand. It defines demand as the quantity of a commodity a consumer is willing to buy at a given price and time. Demand is affected by the price of the commodity, prices of substitutes and complements, income, tastes, and expectations. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Elasticity of demand measures responsiveness of quantity demanded to price changes. It is measured using total expenditure, percentage, and point elasticity methods. Factors like availability of substitutes and nature of the good impact elasticity. Demand can be perfectly elastic, perfectly inelastic, or elastic.
Elasticity Of Demand
The document discusses elasticity of demand, which refers to how much consumer demand for a product changes when the price changes. If demand does not change much when the price increases, demand is said to be inelastic. Inelastic demand occurs for necessities like insulin for diabetics - even if the price rises, diabetics' demand will not decrease much as they need it. Factors that impact elasticity include availability of substitutes, importance of the product in the consumer's budget, whether it is considered a necessity or luxury, and potential for substitutes over time. Companies must consider elasticity and the demand curve for their product to determine optimal pricing that maximizes revenue.
Factor market
The document discusses factor markets, which are markets where the factors of production (labor, capital, land, and entrepreneurship) are traded. It specifically examines the labor market, capital market, and land market. It defines key terms like marginal revenue product (MRP), value of marginal product (VMP), and explains how firms determine the demand for factors of production based on equating MRP and factor prices. The labor market equilibrium and determinants of labor supply and demand are also summarized.
Shift in demand curve
This document discusses the key concepts of demand, including the law of demand, demand curves, and factors that can cause a shift in the demand curve. It explains that the law of demand states that as price increases, quantity demanded decreases, and vice versa. A demand curve illustrates the relationship between price and quantity demanded, and it holds other factors constant. However, when factors like income, population, tastes, or prices of other goods change, it can cause the entire demand curve to shift, not just a movement along the curve. The document provides examples of how changes in these factors would impact demand.
Demand Analysis
This document discusses demand analysis and the factors that influence demand. It covers the key concepts of demand, including the law of demand which states that quantity demanded is inversely related to price when all other factors are held constant. The document explains the factors that cause the demand curve to slope downward, such as substitution effects and income effects. It also discusses exceptions to the law of demand and other factors that influence demand, such as income, price of related goods, tastes and preferences.
Elasticity of demand
This document discusses the concept of elasticity of demand as introduced by Marshall. It defines elasticity of demand as the ratio of percentage change in quantity demanded to the percentage change in price. There are three types of elasticity: price, income, and cross elasticity. Factors that influence elasticity include the nature of the commodity, availability of substitutes, uses, ability to postpone demand, amount spent, time, and price range. Elasticity is important for price fixation, production, distribution, international trade, public finance, and nationalization decisions.
Elasticity Of Supply And Demand
Elasticity measures the responsiveness of quantity to price changes. It allows economists to compare markets without standardizing units. There are own price elasticities of demand and supply that measure responsiveness of quantity to the good's own price. Demand is more price sensitive when elasticity is further from zero. Total expenditures can increase or decrease with price changes depending on elasticity. Other elasticities include cross price and income elasticities.
13 law of equi marginal utility
The Law of Equi-marginal Utility, also known as Gossen's Second Law, states that consumers will allocate their budget in a way that equalizes the marginal utility per rupee spent across different goods. When making purchasing decisions, consumers will continue to buy more units of a good until the last rupee spent on that good yields the same marginal utility as a rupee spent on any other good. This ensures consumers reach the highest possible total utility from their budget.
Class 6 definition of methods demand forecasting
Demand forecasting is the process of estimating future demand for a product based on factors like past sales, market conditions, and consumer preferences. Accurate demand forecasting is important for several business functions like production planning, inventory control, sales forecasting, and long-term investment decisions. Common methods for demand forecasting include survey methods like asking consumers about future purchase plans, statistical techniques like trend analysis and regression analysis, and expert opinions. While demand forecasting provides estimates, it cannot predict demand with 100% accuracy.
Change in quantity demand vs change in demand
A change in quantity demanded refers to movement along an existing demand curve caused by a change in price, while keeping other factors constant. A change in demand causes a shift in the demand curve itself, due to changes in non-price factors that influence demand like income, tastes, prices of related goods, and expectations. Specifically, a change in demand results from changes to the underlying determinants of demand other than price, shifting the curve either left or right, while a change in quantity demanded occurs along the original demand curve from a change in price alone.
Demand forecasting
Demand forecasting involves using past demand information to predict future demand. It is important for production planning, acquiring supplies, financial planning, pricing strategies, and advertising. Both qualitative and quantitative techniques are used. Qualitative techniques like expert opinion and surveys are used when little historical data exists, while quantitative time series analysis of trends, seasons, cycles, and random variations is used for existing products. Forecasting allows production to match demand and helps businesses plan effectively.
Determinants of market demand
The document discusses the key determinants of market demand for a product. It identifies 10 factors that influence demand: 1) price of the product, 2) price of related goods like substitutes and complements, 3) consumer income, 4) tastes and preferences, 5) advertising, 6) consumer expectations, 7) demonstration effect, 8) availability of consumer credit, 9) population size, and 10) distribution of national income. These determinants impact the total quantity demanded in the market through their influence on individual consumer demands.
Price elasticity of demand
It is the degree of responsiveness of quantity demanded of a commodity due to change in price, other things remaining the same.
Law of variable proportion
The document discusses the law of variable proportions, which examines how output changes when the quantity of one input (the variable factor) is increased while keeping other inputs fixed. It defines the law, lists its assumptions, and explains it using a tabular example of increasing a fixed amount of land with varying labor. Total product, marginal product, and average product are calculated at each stage. Graphically, there are three stages: increasing returns, diminishing returns, and negative returns. Causes of each stage are also provided, such as underutilization of fixed factors in the first stage and imperfect substitutability of factors in later stages.
Price elascity of demand
The document discusses the concept of elasticity in economics. It defines elasticity as a measure of how responsive one variable is to changes in another variable. Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. Demand is elastic if a 1% change in price leads to a greater than 1% change in quantity demanded, and inelastic if the change in quantity is less than 1%. Factors like availability of substitutes, importance in spending, and time period impact how elastic demand is.
Salik na nakakaapekto sa demand
This document discusses factors that affect consumer demand, including price, taste, income, prices of substitutes or complementary goods, population, consumer expectations, and occasions. It provides examples of how Filipinos' preference for imported goods and boredom with products can change demand. Demand for goods increases with population growth as more consumers enter the market. During times of calamity or unrest, panic buying may occur as consumers expect prices to rise. Demand also rises for goods related to celebrations given the importance of occasions in Filipino culture. Demand can decrease due to factors other than price.
DEMAND ANALYSIS .pdf
This document discusses demand analysis and the key concepts related to demand, including what demand is, types of demand, factors affecting demand, and the law of demand. It defines demand as the quantity of goods and services consumers are willing and able to purchase at various prices. The main factors affecting demand are identified as price, income, substitute prices, and consumer preferences. The law of demand states that, all else equal, as price increases quantity demanded decreases, and vice versa. Exceptions to the law include Giffen goods, Veblen goods, speculative demand, and essential goods.
More Related Content
What's hot
Utility
This document discusses the concept of utility in economics. It defines utility as the capacity of a good or service to satisfy human wants. The document outlines several key characteristics of utility, including that it is psychological, individual, relative, and cannot be objectively measured. It also discusses different types of utility related to production and consumption, including form utility, place utility, time utility, service utility, marginal utility, total utility, and average utility. The relationship between marginal utility and total utility is explored, noting that total utility is maximized when marginal utility reaches zero.
Utility
This document defines and explains the economic concept of utility. It begins by defining utility as the ability of a commodity to satisfy human needs. It then discusses how different commodities provide different levels of utility to different people in different situations. It also explains that marginal utility decreases with increasing consumption of a good while total utility increases at a decreasing rate. The document provides examples and formulas to illustrate these concepts. It concludes by discussing the determinants and assumptions of demand and how the law of demand states that demand curves will slope downward, showing an inverse relationship between price and quantity demanded.
Law of variable proportion
Isoquant is also called as equal product curve or production indifference curve or constant product curve. Isoquant indicates various combinations of two factors of production which give the same level of output per unit of time.
Just as an indifference curve represents various combinations of two goods which give a consumer equal amount of satisfaction, an iso-product curve shows all possible combinations of two inputs physically capable of producing a given level of output. Since an iso-product curve represents those combinations which will result in the production of an equal quantity of output, the producer would be indifferent between them.
This law was given by Alfred Marshall in his book principle of economics.
It show particular pattern of change in output when some factor remain fixed.
Production depend upon factors of production , if factors of production are good, production may increase and vice-versa.
Production function show functional relationship between production and factors of production.
It refers to manner of change in output cost by the increase in all the input simultaneously and in the same proportion.
Returns refers to “change in physical output”
Scale refers to “quantity of input employed”
Change in scale means that all factors of production are increased or decreased in same proportion.
The cost advantage that arises with increased output of a product.
It arises because of the inverse relationship between the quantity produced and per-unit fixed cost.
Profit refers to the excess of receipts from the sale of goods over the expenditure incurred on producing them.
The amount received from the sale of goods is known as ‘revenue’ and the expenditure on production of such goods is termed as ‘cost’. The difference between revenue and cost is known as ‘profit’.
For example, if a firm sells goods for Rs. 10 crores after incurring an expenditure of Rs. 7 crores, then profit will be Rs. 3 crores.
Long Run Cost Function
In the long-run a firm can amend its size and organization to violate demand conditions. In other words, in the long-run the firm can adjust its scale of operations or size of plant to produce any required output in the most efficient way. Thus, in the long run fixed factors can be altered. Management can be restructured to run a firm of a different size. Capital can also be used differently. In short, all factors are variable in the long run and therefore the scale of operations can be altered
Cost and revenue analysis
The document discusses concepts related to cost and revenue analysis. It defines costs as expenses incurred to produce output and categorizes them as economic or accounting costs. It also discusses the differences between fixed, variable, total, average, and marginal costs in the short and long run. The document also defines revenue as the money received from sales and discusses concepts like total, average, and marginal revenue. Finally, it discusses the relationship between costs, revenue, and profit and how businesses aim to maximize profit.
Demand.
This document discusses demand, factors that affect demand, and the elasticity of demand. It defines demand as the quantity of a commodity a consumer is willing to buy at a given price and time. Demand is affected by the price of the commodity, prices of substitutes and complements, income, tastes, and expectations. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Elasticity of demand measures responsiveness of quantity demanded to price changes. It is measured using total expenditure, percentage, and point elasticity methods. Factors like availability of substitutes and nature of the good impact elasticity. Demand can be perfectly elastic, perfectly inelastic, or elastic.
Elasticity Of Demand
The document discusses elasticity of demand, which refers to how much consumer demand for a product changes when the price changes. If demand does not change much when the price increases, demand is said to be inelastic. Inelastic demand occurs for necessities like insulin for diabetics - even if the price rises, diabetics' demand will not decrease much as they need it. Factors that impact elasticity include availability of substitutes, importance of the product in the consumer's budget, whether it is considered a necessity or luxury, and potential for substitutes over time. Companies must consider elasticity and the demand curve for their product to determine optimal pricing that maximizes revenue.
Factor market
The document discusses factor markets, which are markets where the factors of production (labor, capital, land, and entrepreneurship) are traded. It specifically examines the labor market, capital market, and land market. It defines key terms like marginal revenue product (MRP), value of marginal product (VMP), and explains how firms determine the demand for factors of production based on equating MRP and factor prices. The labor market equilibrium and determinants of labor supply and demand are also summarized.
Shift in demand curve
This document discusses the key concepts of demand, including the law of demand, demand curves, and factors that can cause a shift in the demand curve. It explains that the law of demand states that as price increases, quantity demanded decreases, and vice versa. A demand curve illustrates the relationship between price and quantity demanded, and it holds other factors constant. However, when factors like income, population, tastes, or prices of other goods change, it can cause the entire demand curve to shift, not just a movement along the curve. The document provides examples of how changes in these factors would impact demand.
Demand Analysis
This document discusses demand analysis and the factors that influence demand. It covers the key concepts of demand, including the law of demand which states that quantity demanded is inversely related to price when all other factors are held constant. The document explains the factors that cause the demand curve to slope downward, such as substitution effects and income effects. It also discusses exceptions to the law of demand and other factors that influence demand, such as income, price of related goods, tastes and preferences.
Elasticity of demand
This document discusses the concept of elasticity of demand as introduced by Marshall. It defines elasticity of demand as the ratio of percentage change in quantity demanded to the percentage change in price. There are three types of elasticity: price, income, and cross elasticity. Factors that influence elasticity include the nature of the commodity, availability of substitutes, uses, ability to postpone demand, amount spent, time, and price range. Elasticity is important for price fixation, production, distribution, international trade, public finance, and nationalization decisions.
Elasticity Of Supply And Demand
Elasticity measures the responsiveness of quantity to price changes. It allows economists to compare markets without standardizing units. There are own price elasticities of demand and supply that measure responsiveness of quantity to the good's own price. Demand is more price sensitive when elasticity is further from zero. Total expenditures can increase or decrease with price changes depending on elasticity. Other elasticities include cross price and income elasticities.
13 law of equi marginal utility
The Law of Equi-marginal Utility, also known as Gossen's Second Law, states that consumers will allocate their budget in a way that equalizes the marginal utility per rupee spent across different goods. When making purchasing decisions, consumers will continue to buy more units of a good until the last rupee spent on that good yields the same marginal utility as a rupee spent on any other good. This ensures consumers reach the highest possible total utility from their budget.
Class 6 definition of methods demand forecasting
Demand forecasting is the process of estimating future demand for a product based on factors like past sales, market conditions, and consumer preferences. Accurate demand forecasting is important for several business functions like production planning, inventory control, sales forecasting, and long-term investment decisions. Common methods for demand forecasting include survey methods like asking consumers about future purchase plans, statistical techniques like trend analysis and regression analysis, and expert opinions. While demand forecasting provides estimates, it cannot predict demand with 100% accuracy.
Change in quantity demand vs change in demand
A change in quantity demanded refers to movement along an existing demand curve caused by a change in price, while keeping other factors constant. A change in demand causes a shift in the demand curve itself, due to changes in non-price factors that influence demand like income, tastes, prices of related goods, and expectations. Specifically, a change in demand results from changes to the underlying determinants of demand other than price, shifting the curve either left or right, while a change in quantity demanded occurs along the original demand curve from a change in price alone.
Demand forecasting
Demand forecasting involves using past demand information to predict future demand. It is important for production planning, acquiring supplies, financial planning, pricing strategies, and advertising. Both qualitative and quantitative techniques are used. Qualitative techniques like expert opinion and surveys are used when little historical data exists, while quantitative time series analysis of trends, seasons, cycles, and random variations is used for existing products. Forecasting allows production to match demand and helps businesses plan effectively.
Determinants of market demand
The document discusses the key determinants of market demand for a product. It identifies 10 factors that influence demand: 1) price of the product, 2) price of related goods like substitutes and complements, 3) consumer income, 4) tastes and preferences, 5) advertising, 6) consumer expectations, 7) demonstration effect, 8) availability of consumer credit, 9) population size, and 10) distribution of national income. These determinants impact the total quantity demanded in the market through their influence on individual consumer demands.
Price elasticity of demand
It is the degree of responsiveness of quantity demanded of a commodity due to change in price, other things remaining the same.
Law of variable proportion
The document discusses the law of variable proportions, which examines how output changes when the quantity of one input (the variable factor) is increased while keeping other inputs fixed. It defines the law, lists its assumptions, and explains it using a tabular example of increasing a fixed amount of land with varying labor. Total product, marginal product, and average product are calculated at each stage. Graphically, there are three stages: increasing returns, diminishing returns, and negative returns. Causes of each stage are also provided, such as underutilization of fixed factors in the first stage and imperfect substitutability of factors in later stages.
Price elascity of demand
The document discusses the concept of elasticity in economics. It defines elasticity as a measure of how responsive one variable is to changes in another variable. Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. Demand is elastic if a 1% change in price leads to a greater than 1% change in quantity demanded, and inelastic if the change in quantity is less than 1%. Factors like availability of substitutes, importance in spending, and time period impact how elastic demand is.
What's hot (20)
Similar to Types of demand
Salik na nakakaapekto sa demand
This document discusses factors that affect consumer demand, including price, taste, income, prices of substitutes or complementary goods, population, consumer expectations, and occasions. It provides examples of how Filipinos' preference for imported goods and boredom with products can change demand. Demand for goods increases with population growth as more consumers enter the market. During times of calamity or unrest, panic buying may occur as consumers expect prices to rise. Demand also rises for goods related to celebrations given the importance of occasions in Filipino culture. Demand can decrease due to factors other than price.
DEMAND ANALYSIS .pdf
This document discusses demand analysis and the key concepts related to demand, including what demand is, types of demand, factors affecting demand, and the law of demand. It defines demand as the quantity of goods and services consumers are willing and able to purchase at various prices. The main factors affecting demand are identified as price, income, substitute prices, and consumer preferences. The law of demand states that, all else equal, as price increases quantity demanded decreases, and vice versa. Exceptions to the law include Giffen goods, Veblen goods, speculative demand, and essential goods.
Types Of Demand.pptx
-by Mohd Sameer ,
Student Of United College Of Education (GGSIPU)
instagram : shan_since2003
mohd sameer
coder savio
codersavio
Mohd Sameer
Eco final ppt
This document provides an overview of demand, including:
1. It defines demand as an effective desire to purchase a good, backed by both willingness and ability to pay.
2. Demand has three main characteristics - willingness and ability to pay, demand is at a price, and demand is per unit of time.
3. There are different types of demand including individual vs. market demand, demand for a firm's product vs. an industry's products, autonomous vs. derived demand, and short-term vs. long-term demand.
4. The document also discusses the law of demand, assumptions of the law of demand, and exceptions to the law of demand. It provides examples of movements
Lec 09 Demand and its meaning
Demand
In economics “Demand” means the quantity of goods and services which a person can purchase with a requisite amount of money.
“Demand means the various quantities of goods that would be purchased per time period at different prices in a given market.
Demand analysis(determinants,change and law).pptx
This document provides an overview of demand analysis. It defines demand and explains that demand is relative to both time and price factors. It then discusses different types of demand such as individual vs market demand, autonomous vs derived demand, and short-term vs long-term demand. The document also examines the determinants that influence demand, such as price, income, tastes and preferences. It introduces the concept of demand schedules and curves. Finally, it covers the law of demand and some exceptions to this law.
Economics
This document discusses demand theory and related concepts. It begins by defining demand as a buyer's willingness and ability to pay for a quantity of goods or services. It then covers the theory of demand, including its development by economists like Walras, Marshall, and Arrow. The document discusses the concept of effective demand and different types of demand like direct, derived, competitive, complementary, composite, and perishable versus durable. It also covers determinants of demand like price, income, tastes, expectations, and advertising. The law of demand and demand schedules and curves are explained. Exceptions to the law of demand like Giffen and Veblen goods are also mentioned.
All about demand
The document discusses the key factors that affect demand, including:
1. Price of the commodity - as price rises, demand falls and vice versa, due to income and substitution effects.
2. Price of related commodities like complements (rise in one raises demand for the other) and substitutes (fall in one raises demand for alternatives).
3. Income level - demand for normal goods rises with income while inferior goods see falling demand.
It also outlines different types of demand like direct vs indirect, derived vs autonomous, and total market vs segment demand. Factors like population, tastes, and distribution of income additionally influence demand.
Consumers presentation
This document is a student project on consumer awareness. It begins by acknowledging the teacher for providing the opportunity to do the project. The objective is stated as assessing consumer awareness among different classes of society regarding price, quality, fair pricing, standardization, rights and duties. It then provides an index and introduction. Sections provide definitions of a consumer and consumer exploitation. It discusses the consumer movement, rights including safety, information, choice, redress and education. It describes consumer forums and courts for seeking justice. The conclusion restates the importance of consumer awareness.
Unit 3
This document provides an overview of demand analysis. It defines key demand concepts like individual demand, market demand, direct vs derived demand, recurring vs replacement demand, complementary vs competing demand, demand function, demand schedule, demand curve, and law of demand. It outlines the assumptions and possible exceptions to the law of demand. Finally, it discusses how demand analysis serves important managerial purposes like sales forecasting, demand manipulation, product planning, and determining pricing policy.
Chapter Two ppt.pdf managerial economics
The document discusses the concept of demand in economics. It defines demand and explains the key factors that determine demand, including price, income, tastes, and expectations about future prices. It also describes the law of demand, which states that quantity demanded is inversely related to price, assuming all other factors remain constant. The document outlines different types of demand curves and schedules, and exceptions to the basic law of demand under certain market conditions.
Demand concept of demand
1) Demand refers to an effective desire for a commodity, backed by the ability and willingness to pay for it. Demand depends on factors like price, income, tastes, expectations about future prices, and advertising.
2) Individual demand refers to what one consumer will buy, while market demand is the total demand from all consumers. Market demand determines sales and prices.
3) Factors that influence demand include price, income, tastes, prices of substitutes and complements, expectations, advertising, number of consumers, and economic conditions.
Demand analysis & supply analysis
This document discusses demand analysis and supply analysis. It defines demand as a relationship between price and quantity demanded, outlines the three things essential for desire to become effective demand, and describes the three alternative ways to express demand: demand function, demand schedule, and demand curve. It then discusses factors that affect demand, types of demand, and exceptions to the law of demand. The document also defines supply, outlines the law of supply, and explains how supply curves depict the relationship between price and quantity supplied. It concludes by interpreting how changes in demand and supply can shift the equilibrium price and quantity in a market.
Theory of demand
This document discusses the economic concept of demand. It defines demand as the quantity of a good or service that consumers are willing and able to purchase at various price levels. Demand is determined by factors like price, income, tastes, population, and prices of substitutes. The law of demand states that, all else equal, demand increases when price decreases and decreases when price increases. Demand can change due to shifts in the demand curve from changes in these determinants, other than price.
supply demand and equilibrium
This document provides an overview of demand, supply, and market equilibrium. It defines key concepts such as firms, households, input and output markets, and the circular flow of the economy. It discusses the determinants of demand and supply, including price and income. It explains the laws of demand and supply, how demand and supply curves are derived, and how equilibrium is reached through market interactions between buyers and sellers.
demand and supply ace garcia garcia.pptx
This document discusses the concepts of demand and supply. It defines demand as the willingness of a consumer to buy a commodity at a given price, and explains that demand is negatively related to price - as price increases, quantity demanded decreases. Supply is defined as the quantity of goods that a seller is willing to offer for sale, and is positively related to price - as price increases, quantity supplied also increases. The document lists several factors that influence demand, such as income, price of other goods, tastes and preferences, and expectations. It also provides examples of demand and supply schedules and functions.
Market Demand Analysis presentation by Bakkaprabhu Uppar
A presentation on market demand analysis is an insightful way to understand how businesses evaluate consumer demand for their products or services. This presentation covers the basics of market demand analysis, including the methods used to collect and analyze data, such as surveys and focus groups. It also explores the factors that influence market demand, such as consumer preferences, income levels, and market trends. The presentation provides insights into how businesses can use market demand analysis to inform their pricing, production, and marketing strategies.
Anuprita Bhoyar Economics for Engineers
This document discusses the law of demand and exceptions to the law of demand. It begins by defining the law of demand as an inverse relationship between price and quantity demanded. It then lists and describes several exceptions to the law, including Veblen goods, the possibility of future price rises, changes in fashion/taste, emergencies, bandwagon effect, Giffen goods. Finally, it discusses factors that affect demand such as income, tastes, prices of substitutes/complements, advertising, and number of customers.
Aralin 13 AP 10
This document discusses the concept of the market system. It defines key terms like consumers and businesses. It explains how price is determined in the market through the interaction of supply and demand. It analyzes how changes in factors like supply and demand affect the market. It discusses two major problems that can occur in markets - shortages and surpluses. It explores how markets solve these problems and the implications of market equilibrium. Diagrams are used to illustrate these concepts.
Fundamental concepts and terminologies
GOODS-COMMODITIES WHICH HAVE PHYSICAL EXISTENCE ARE CALLED GOODS. IN ECONOMICS THEY ARE MEANT TO SATISFY THE NEEDS OF HUMAN BEING.
SERVICE-COMMODITIES WHICH ARE INTANGIBLE AND DO NOT HAVE PHYSICAL EXISTENCE ARE CALLED SERVICE. IN ECONOMICS THEY ARE MEANT TO SATISFY THE NEEDS OF HUMAN LIFE.
Similar to Types of demand (20)
Market Demand Analysis presentation by Bakkaprabhu Uppar
Market Demand Analysis presentation by Bakkaprabhu Uppar
More from Kumarrebal
Mobile banking issues in banking and insurance
please use this for learning not for coping this was done by me at the time my study of MBA in finance specialization and all this work was not copied
Consumer bhavior and market research
please use this for learning not for coping this was done by me at the time my study of MBA in finance specialization and all this work was not copied
Tools and techniques of data collection
please use this for learning not for coping this was done by me at the time my study of MBA in finance specialization and all this work was not copied
Net operating approach in financial management
The Net Operating Income approach is a capital structure theory that suggests the total value of a firm is independent of the firm's capital structure or use of financial leverage. According to this approach, the market value of a firm depends only on the firm's operating income and business risk, not on financial leverage. While financial leverage can impact distributions to debt holders and equity holders, it cannot impact the firm's operating income or total value. The Net Operating Income is a measure of real estate profitability calculated by subtracting operating expenses from revenues to examine underlying cash flows before taxes and financing costs.
quantitative marketing techniques
Forecasting is predicting future demand based on past demand information. The accuracy of a forecast depends on the quality of past data used. Forecasting methods can be qualitative, based on expert opinions, or quantitative, using numerical data and analytical techniques. Quantitative methods include time series models, which analyze past patterns to predict the future, and associative models, which assume variables are related and use those relationships to project demand. Common quantitative time series techniques are naive, simple averages, weighted moving averages, exponential smoothing, trend projection, and seasonal indexes.
Job evaluation methods
This document discusses various job evaluation methods used to determine the relative worth of jobs. It describes analytical methods like the point method and factor comparison method, which assign points to different job factors. It also covers non-analytical methods like ranking, where jobs are simply compared to one another. Another method is job grading, which establishes grades for different job categories. The document provides advantages and disadvantages of each approach.
Individual responsibility
This document discusses individual responsibility. It states that taking responsibility for one's own life means acknowledging that your life is your responsibility and that no one else can live it for you. It is important to eliminate blame and excuses for your decisions and circumstances, and to understand that you are responsible for the choices you make. Truly taking responsibility for yourself allows freedom, control, trust, and emotional stability. However, human nature can lead people to avoid responsibility through blaming others, making excuses, complaining, and having a victim mentality. Keys to being responsible include responding instead of reacting, accepting blame, discipline, and acknowledging mistakes.
Decision making in location
Location decisions are important strategic decisions that have long-term impacts. They are driven by factors like adding new facilities, expanding markets, growth in demand, and cost of doing business. Location decisions must consider objectives like profit potential and supply chains. Options include expanding existing facilities, adding new locations, moving facilities, or doing nothing. Location choices are based on profit potential, customer service, and position in the supply chain.
Managing people conflicts and stress
Conflicts arise from serious disagreements between individuals or groups that have not been resolved. When in conflict, it can be difficult to make decisions and groups may split into opposing factions. To handle conflicts in the workplace, one should talk to the other person, focus on behaviors rather than personalities, listen carefully, identify areas of agreement and disagreement, and develop a plan to address each conflict area. Stress is the body's reaction to changes that require adjustment and can be caused by difficulties, workload issues, unclear roles and responsibilities, or lack of support systems. Managing stress involves ensuring alignment of work and resources, meaningful jobs, clear communication, and opportunities for growth.
Fiscal policy of india
The document discusses fiscal policy in India. It defines fiscal policy and its objectives of ensuring rapid economic growth and development through mobilizing financial resources via taxation, public savings, and private savings. It then analyzes causes of fiscal imbalance such as increasing subsidies, interest payments, defense spending, poor public sector performance, tax evasion, and government borrowing. It concludes by outlining approaches to reduce expenditure and raise funds to address fiscal imbalance under India's new fiscal policy framework.
Financial Analysis
Kansai Nerolac Paints Ltd is the largest industrial paint and third largest decorative paint company in India. It is a subsidiary of Kansai Paint of Japan. The document provides a comparative balance sheet of Nerolac Paints for the years 2009 and 2013. It shows that over this period the company's total assets grew by over 92% from Rs. 1086.1 crores to Rs. 2086.57 crores. Current assets increased by over 120% and other assets grew by over 230%. The company's total liabilities also increased by over 92% with long term liabilities rising by over 94% and current liabilities increasing by over 96%.
More from Kumarrebal (11)
Recently uploaded
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
The Diamonds of 2023-2024 in the IGRA collection
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingExcellence Foundation for South Sudan
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)Academy of Science of South Africa
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...Nguyen Thanh Tu Collection
https://app.box.com/s/y977uz6bpd3af4qsebv7r9b7s21935vdExecutive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
DRUGS AND ITS classification slide share
Any substance (other than food) that is used to prevent, diagnose, treat, or relieve symptoms of a
disease or abnormal condition
How to Make a Field Mandatory in Odoo 17
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
clinical examination of hip joint (1).pdf
described clinical examination all orthopeadic conditions .
The History of Stoke Newington Street Names
Presented at the Stoke Newington Literary Festival on 9th June 2024
www.StokeNewingtonHistory.com
RPMS TEMPLATE FOR SCHOOL YEAR 2023-2024 FOR TEACHER 1 TO TEACHER 3
RPMS Template 2023-2024 by: Irene S. Rueco
Recently uploaded (20)
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
Digital Artefact 1 - Tiny Home Environmental Design
Digital Artefact 1 - Tiny Home Environmental Design
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Pride Month Slides 2024 David Douglas School District
Pride Month Slides 2024 David Douglas School District
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
RPMS TEMPLATE FOR SCHOOL YEAR 2023-2024 FOR TEACHER 1 TO TEACHER 3
RPMS TEMPLATE FOR SCHOOL YEAR 2023-2024 FOR TEACHER 1 TO TEACHER 3
Types of demand
- 3. CONSUMER V/S PRODUCER CONSUMER GOODS DEMAND PRODUCER GOODS DEMAND THE DEMAND FOR PRODUCTS WHICH WERE REQUIRED BY THE CONSUMERS ARE CALLED CONSUMER GOODS DEMAND GENERALLY THESE WERE CALLED NECESSITIES FOR EXAMPLE :RICE, CLOTHES, ETC,. THE GOODS WHICH WERE DEMANDED BY THE PRODUCER AT THE TIME OF PRODUCTION ARE CALLED PRODUCER GOODS DEMAND GENERALLY THESE TYPE OF DEMAND IS SEEN IN FACTORIES FOR EXAMPLE ;RAWMATERIALS
- 4. AUTONOMOUS V/S DERVIED AUTONOMOUS DEMAND DERVIED DEMAND IT IS BASED ON THE NECESSATIES FOR SATISFYING HUMAN WANTS . IT IS THE DEMAND WHICH IS CREATED BY THE PEOPLE TO SATISY THERE WANTS FOR EXAMPLE; WHEN THE DEMAND FOR A PRODUCT DEPENDS ON DEMAND FOR OTHER REALTED GOOD . IN OTHER WORDS DEMAND FOR A PRODUCT ARRIVED FROM THE PARENT PRODUCT FOR EXAMPLE;
- 5. DURABLE V/S PERSHIABLE DURABLE DEMAND PERSHIABLE DEMAND IT IS THE DEMAND FOR DURABLE GOODS THE GOODS WHICH CAN STAY FOR LONG PERIOD ARE CALLED DURABLE DEMAND FOR EXAMPLE; DEMAND FOR PERSHIABLE GOODS LIKE THE GOODS CAN STALLED NOT MORE THAN A DAY ARE CALLED PERSHIBLE GOODS FOR EXAMPLE; VEGETABLES
- 6. FIRM V/S INDUSTRY FIRM DEMAND INDUSTRY DEMAND THE DEMAND FOR SINGLE OR INDIVIDUAL FIRM OR UNIT FOR EXAMPLE; THE DEMAND FOR WHOLE OR GROUP OF FIRMS FOR EXAMPLE;
- 7. SHORT RUN V/S LONG RUN SHORT RUN DEMAND LONG RUN DEMAND DEMAND ESTIMITAING FOR TIME PERIOD BETWEEN 6 MONTHS TO ONE YEAR FOR EXAMPLE; DEMAND ESTIMATING MORE THAN A YEAR FOR EXAMPLE;
- 8. NEW V/S REPLACEMENT NEW DEMAND REPLACEMENT DEMAND THE DEMAND FOR NEW PRODUCTS THE DEMAND FOR REPLACEMENT PRODUCTS ITEM PURCHASED TO MAINTAIN THE ASSET IN GOOD CONDITION HERE WE MODIFY THE EXISITING PRODUCT WITH NEW PRODUCTS
- 9. FACTORS INFLUNCEING THE DEMAND
- 10. FACTORS 1 ) PRICE 2)INCOME 3)TASTE & PREFERNCES OF THE CONSUMERS 4)ADVERTISEMENTS 5)SUBSTITUTES & COMPLIMENTARIES 6)TECHONOLOGICAL CHANGES 7)GOVERNMENT POLICIES 8)SIZE OF POPULATION 9)CLIMATIC CONDITIONS
- 11. PRICE IT IS INVERSE REALTION SHIP BETWEEN QUANTITY DEMANDED IF THE PRICE OF THE PARTICULAR COMMODITY INCREASES THE QUNATITY DEMANDED FOR THAT PRODUCT DECREASES WHEN WE DRAW THE DEMAND SCHEDULE OR THE DEMAND CURVE FOR A GOOD WE TAKE THE PRICES OF THE RELATED GOOD AS REMAINING CONSTANT
- 12. INCOME THE DEMAND FOR GOODS ALSO DEPENDS UPON THE INCOME OF THE PEOPLE IN DRAWING DEMAND CURVE WE TAKE INCOME AS THE GIVEN AND CONSTANT WHEN AS A RESULT OF THE RISE IN THE INCOME OF THE PEOPLE, THE DEMAND INCREASES,THE WHOLE OF THE DEMAND CURVE SHIFTS UPWARD AND VICE VERSA
- 13. TASTE AND PREFERNCES OF CONSUMER PEOPLE’S TASTES AND PREFERNCES FOR VARIOUS GOODS OFTEN CHANGE AND AS A RESULT THERE IS CHANGE IN DEMAND FOR THEM. THE CHANGES IN DEMAND CURVE ALSO OCCUR DUE TO THE CHANGES IN FASHION AND ALSO DUE TO THE PRESSURE OF ADVERTISEMENTS BY THE MANSUFACTURERS AND SELLERS OF DIFFERENT PRODUCTS.
- 14. THE SIZE OF THE POPULATION SIZE OF THE POPULATION ALSO AFFECT THE DEMAND IN CASE IF NUMBER IS HIGH THE DEAMAND FOR THE CERTAIN PRODUCT IS ALSO HIGH AND VICE VERSA
- 15. CLIMATIC CONDITIONS CLIMATIC CONDITIONS ALSO AFFECT THE DEAMND FOR EXAMPLE ICE CREAMS HAVE LESS DEMAND IN WINTER SEASON WHEN COMPARED TO SUMMER SEASON
Editor's Notes
- ZCVDFBDFHBDFTGHBFGBFDGBFRDGVBFSDGVREGVERGWERGFMW4LERGNFLWE