Market?

The Market is a place where buyers and sellers of the product communicate each other in terms of
monetary exchange.

Collective action of buyers in the market determines the market demand for a particular product

While collective action of suppliers in the market determines the market supply

Demand: - It an economic principal of consumer desire which is backed up by money for purchase
goods and services.

Quantity Demand :- Goods or Services demanded at a price in a time.

Effective demand: - Willingness and ability to buy a product.

Demand Function :- Demand For a good Depend Upon

Ddx = f(Px,Po,Y,T)

Here

Px = Price of Own Product

Po = Price of Related Product

Y= Income

T= Taste

Law Of Demand: - Ddx =f(p)x Price

Demand Varies with demand with price

Demand

Goods are Classified into 4 categories

1 Normal Good 2 Inferior Good

Income Gdx Income Gdx

3 Complement Goods 4 Substitute Good

Pa Db Pa Db

Market Demand Curve

Change In demand are two types

1 expansion of demand

2 Contractions of demand