1. Write an introduction about- Demand.

Demand in economics refers to the desire to buy a product, backed up by the ability
to pay for it. Demand for a commodity gets affected by the change in price of the
good i.e., the price of a good is inversely proportional to its demand. If there is an
increase in the price of good, then the demand of that good is supposed to decrease
and when the price of the good is supposed to decrease then its demand will
increase, keeping other factors constant.
The price of a good is determined when the demand of a good equals the supply,
then that point is called the equilibrium point and the price at that point is
considered as the price of the good.

The demand not goes same all the time i.e., the demand doesn’t always show
inverse relation with the commodity, rather it depends upon the type of the good.
Like in case of luxury goods, the price is directly proportional to the demand of the
product.

The graphical representation of demand is also downward sloping, showing the

inverse relation between the demand and price of the good.
 2. Components & meaning of demand 2-3 Pages

ANSWER-

3. Demand Function 1-2 Pages

4. Important factors 2-3 Pages

IMPORTANT FACTORS THAT ARE AFFECTING THE DEMAND OF TATA GLUCO PLUS
ARE AS FOLLOWS –
A) PRICE OF OTHER ENERGY DRINKS – Price of other energy drinks like Sting,
Redbull etc. will act as the substitute goods for Tata Gluco Plus. So if the
prices of other energy drinks will be high and the price of Gluco Plus will be
low, then the demand for Gluco plus goes significantly up as per the
statements of the retail store that we visited.
B) ADVERTISEMENT AND PROMOTION STRATEGIES BY THE BRAND- When we
visited the retail store around us, the shopkeeper told us that the company
does not spend much in the advertisement and promotion of this product.
Such a behaviour by the company has drastically affected the demand for
Gluco Plus as there are a lot of customers in the market who are unaware of
the presence of this product.
C) CLIMATE AND WEATHER CONDITIONS
D) AVAILABILITY IN SUPERMARKETS AND LOCAL STORES
E) TASTE OF CONSUMERS INRESPECT OF AVAILABILITY OF FLAVOURS
F) DEMOGRAPHICS OF THE PLACE ( URBAN RURAL OR CHILD MIDDLE AGED) -
Tata Gluco Plus is a product which is mostly consumed by people of rural
areas because its price is very low. The people in Urban areas prefer drinking
more expensive energy drinks which are imported from outside.
G) CLASS OF POPULATION IN THE REGION (VERY LESS LIKEY TO BE CONSUMED
BY HIGH INCOME PEOPLE) AND MORE LIKELY TO BE CONSUMED BY LOW
INCOME PEOPLE OR MIDDLE-INCOME PEOPLE.
H) DEMONSTRATION EFFECT – It refers to a situation when a particular person
or family follows the living standard or living pattern of other person in
 neighbours. Because of its nutritional benefits, the demand for Tata Gluco
Plus weighs a lot on the demonstration effect.

5. Demand Curve.

Answer- Demand curve is nothing but the graphical representation of the relationship
between the demand for gluco plus with its price at that point of time. Usually the price is
shown on the Y axis and the quantity of product is shown in the X axis.
The demand curve in the graph is presented as downward sloping i.e., from left to right,
which ultimately shows the law of demand.
Moreover, the demand curve for the product may change with change in the other factors
or the determinants of demand. Like it shows rotation as well as shift in the demand curve
due to change in any other factors.

Let’s first see how the demand curve shows shifting -

Rightward shift in the demand curve

The above figure shows the rightward shift in the demand curve of gluco plus. The reason
behind this shift is mainly the income i.e., when the income of the consumer rises, then the
consumer tends to consume more. Hence, the demand curve shifts to right as there is
increase in both the quantity and price.
Similarly, the demand curve also shifts to the left, with the decrease in the income levels of
the consumer. This can be shown as –

Not only shifting, but the demand curve also show rotation. The rotation in the demand
curve is basically because of the change in price levels of the product. When we see the case
with gluco plus then we can interpret that the demand curve of Gluco plus will also rotate
when there will be change in its price level as, the income levels of the people is taken as
constant, so when the prices of the gluco plus will increase, then the quantities demanded
of the gluco plus will also decline with the same income level because the increasing price
levels decrease the purchasing capacity of the individuals. Also, according to the law of
demand, with rise in the price levels, the quantity demanded goes down. This happens
generally in the case of normal goods.
The opposite is going to happen when we talk about the decrease in the price levels, as
when the prices of gluco plus will go down, the purchasing capacity of the individuals is
going ton increase with the same level of income, hence the consumption will be more and
the quantiy demanded of the product will increase.
The rotation of demand curve of gluco plus can be shown as –
The above picture shows the situation when the price of the gluco plus increases, the
quantity demanded decreases.
The above picture shows the situation where the price of the gluco plus decreases and the
quantity demanded of it increases with the same level of income.

6. Analyse the impact of covid 19 on the demand for this product 1-2 Pages

7. Conclusion 1-2 Pages