demand.pptx

Theories of demand
SUBMITTED TO :- DR MONIKA GAHLAWAT
P R E S E N T E D B Y : - R I C H A S I N G L A

what is Demand
Demand simply means a consumer's desire to
buy goods and services without any hesitation
and pay
the price for it. In simple words, demand is the
number of goods that the customers are ready
and willing to buy at several prices during a
given time frame.
Demand = Desire to buy + ability to pay +
willingness to pay

Theory of Demand
•Demand theory is an economic
principle relating to the relationship
between consumer's Demand for goods
and services and their prices in the
market
•Demand theory forms the basis for the
Demand curve, which related relates
consumer desire to the amount of goods
available.
* As more of a good or service is a good
or services are available, demand drops
and so does the equilibrium price.
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STUDIO SHODWE
It is a tabular representation of the
correlation between the price of the
commodity and quantity demanded for a
period of time.
It includes :-
1. Individual demand schedule
2. Market demand schedule
Demand schedule
It is a graphical representation of the
correlation between the price of the
commodity and quantity demanded for a
period of time.
It includes:-
1. Individual demand curve
2. Market demand curve
Demand curve
Terms related to
theory of demand

Individual demand
schedule
It is a tabular representation of different quantities of
a commodity at which a consumer is willing to buy at
different price levels during a given period.

Market demand
schedule
It is a tabular representation of different quantities of
a commodity that all the consumers are willing to buy
at different price levels during a given period of time .

STUDIO SHODWE
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Functions of demand
The demand function shows the
relation, between the quantity
demanded of a, commodity by
the consumers and the price, of
the product.
The principles variables that
influence the quantity demanded
of a good or service are :-
1. The price of the goods and
services
2. The income of consumer
3. Price of related good
4. Tastes and preference
5. Expected price of product in
future period.
6. The number of consumer in
the market
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RELATIONSHIP
Demand Function The functional
relationship between the demand
for a commodity and its various
determinants may be expressed
mathematically in terms of a
demand function.
Thus:
Dx = f (Px, Py, M, T, A, U)
where, Dx = Quantity demanded
for commodity X.
f = functional relation.
Px = The price of commodity X.
Py = The price of substitutes and
complementary goods.
M = The money income of the
consumer.
T = The taste of the consumer.
A = The advertisement effects.
U = Unknown variables or
influences.
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Law of demand
BENHAM
Usually a larger quantity of
commodity will demanded at
lower price then a higher price .
MARSHALL
Some definition of The law of
demand are as follows :-
The greater the amount to be
sold the smaller must be the
price.
Accordingto :-

Characteristics of law of demand
There is inverse relationship between price of commodity and its demand .
Priceis independent variable.
Demand is dependent variable on price of good.

demand.pptx

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demand.pptx