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Demand Function Presentation

Demand refers to the quantities of a good that consumers are willing and able to purchase at different price levels during a given time period. The law of demand states that, all else equal, demand decreases as price increases and increases as price decreases, showing an inverse relationship between price and quantity demanded. A demand schedule shows the relationship between price and quantity demanded in a table, while a demand curve illustrates this relationship graphically with a downward sloping curve.

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Ishita Singla
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598 views10 pages

Demand Function Presentation

Demand refers to the quantities of a good that consumers are willing and able to purchase at different price levels during a given time period. The law of demand states that, all else equal, demand decreases as price increases and increases as price decreases, showing an inverse relationship between price and quantity demanded. A demand schedule shows the relationship between price and quantity demanded in a table, while a demand curve illustrates this relationship graphically with a downward sloping curve.

Uploaded by

Ishita Singla
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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DEMAND FUNCTION

MEANING OF DEMAND Demand is the quantities that buyers are willing and able to buy at alternative prices during a given period of time.

Demand refers to the quantities of a commodoty that the consumers are able and willing to pay at each possible price during a given period of time,other thingsbeing equal.

Law of demand
Law of demand states,that other things being

equal,the demand for a good extends with a fall in price and contracts with a rise in price.There is an inverse relationship between price of the commodity and its quantity demanded.

Characteristics
Inverse Relationship

Price an Independent Variable and demand, a

dependent variable Other things Remaining the same Direction of change Related with Time

Assumption
There should be no change in the price of related

goods There should be no change in the income of the consumer There should be no change in the tastes and preferences of consumer The consumer does not expect any change in the price of the commodity in the near future

Demand schedule
Demand schedule is a table that shows different

prices of a good and the quantity of that good demanded at each of these prices. The two types of demand schedule are as follows: Individual demand schedule. Market demand schedule.

Demand Curve
The demand curve represents the maximum

quantities per unit of time that consumers will take at various prices

Why Does demand curve slope downward


Law of diminishing Marginal Utility

Income effect
Substitution Effect Different uses Size of consumer group

Exception to the law of Demand


Articles of Distinction

Ignorance
Giffen Goods Expectation of Rise or fall in Price in Future Consumers Psychological Bias Necessaries of Life Commodities with Special Brand and Trade mark War or emergency Small part of Total Expenditure

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