Professional Documents
Culture Documents
AND
ENJOY
Group I
DEMAND
DEMAND
What is demand?
What is the 'Demand Schedule?
What is demand curve?
The Law of Demand?
What Are the Five Determinants of
Demand?
Shifts in demand?
What is demand?
Demandrefers to how much (quantity) of a
product or service is desired by buyers. The
quantity demanded is the amount of a
product people are willing to buy at a
certain price; the relationship between price
and quantity demanded is known as the
demand relationship
Types of demand.
Individual and Market Demand:
Organization and Industry Demand:
Autonomous and Derived Demand:
Demand for Perishable and Durable Goods:
Short-term and Long-term Demand:
1.Individual and Market Demand
Individual demand can be defined as a
quantity demanded by an individual for a
product at a particular price and within the
specific period of time
market demand is the aggregate of
individual demands of all the consumers of a
product over a period of time at a specific
price, while other factors are constant
2.Organization and Industry
Demand.
Refers to the classification of demand
on the basis of market. The demand
for the products of an organization at
given price over a point of time is
known as organization demand.
3. Autonomous and Derived Demand
Refers to the classification of demand on the
basis of dependency on other products. The
demand for a product that is not associated
with the demand of other products is known
as autonomous or direct demand. The
autonomous demand arises due to the
natural desire of an individual to consume
the product.
4. Demand for Perishable and
Durable Goods
Refers to the classification of demand on the
basis of usage of goods. The goods are divided
into two categories, perishable goods and
durable goods. Perishable or non-durable
goods refer to the goods that have a single
use. For example, cement, coal, fuel, and
eatables. On the other hand, durable goods
refer to goods that can be used repeatedly.
5. Short-term and Long-term
Demand
Short-term demand refers to the demand
for products that are used for a shorter
duration of time or for current period
The long-term demand of a product depends
on a number of factors, such as change in
technology, type of competition, promotional
activities, and availability of substitutes.
The short-term and long-term concepts of
demand are essential for an organization to
design a new product.
What is the 'Demand Schedule?
is a table of thequantity demandedof a
good at different price levels. Given the
price level, it is easy to determine the
expected quantity demanded
EXAMPLE:
PRICE OF PRODUCT QUANTITY OF PRODUCT
SMART PHONE DEMANDED
3,000 17
4,000 15
5,000 13
6,000 11
7,000 9
8,000 7
9,000 5
10,000 3
11000 1
demand curve
thegraphdepicting the relationship between
the price of a certaincommodityand the
amount of it that consumers are willing and
able to purchase at any given price. It is a
graphic representation of a
market demand schedule
EXAMPLE:
PRICE
DEMAND
QUANTITY
The Law of Demand
The law of demand states that, if all other
factors remain equal, the higher the price of
a good, the less people will demand that
good. In other words, the higher the price,
the lower the quantity demanded
The law of demand is so intuitive that you may not
even be aware of all the examples around you.
When shirts go on sale, you might buy three
instead of one. The quantity that you demand
increases because the price has fallen.
When plane tickets become more expensive,
youre less likely to travel by air and more
likely to choose the less expensive options of
driving or staying home. The amount of plane
tickets that you demand decreases to zero
because the cost has gone up.
What Are the Five
Determinants of Demand?
The price of the good or service.
Population size
Incomeof Consumers.