Demand & Supply Analysis

Why do we study Demand Analysis?

• Success/ failure of a firm determined by total revenue which depends

on demands of consumers.
• Demand is essential for creation, survival and profitability of a firm
• Mere efficient production technique and/or effective management
may not ensure survival of a firm if demand for the product is not
sustained.
Individual Demand Schedule
(Cathy’s Demand for Cone Ice Cream

Price per Cone Daily Quantity

(P) (Q)
₱3.00 0
₱2.50 2
₱2.00 4
₱1.50 6
Individual Demand Curve
(Cathy’s Demand for Cone Ice Cream)

P
(₱ Per
Cone)
₱2.50
₱2.00

₱1.50

2 4 Q (Cone
6 Per Day)