Applied Economics for Engineers Prepared by Dr.

Kashif Noor

Course Title : Applied Economics for Engineers

Course Code : MF-303
Course Teacher : Dr. Kashif Noor
Handout : 03

Law of Demand

Demand : Economists use the term demand to refer to the amount

of some good or service consumers are willing and able to purchase
at each price.

Law of Demand: “Taking all other things constant, if a prices of a

commodity increases, its demand decreases and vice versa.”

Determinants of Demand
If Qdx is Quantity demand of product “X”, then;
Qdx = f (Px , Py , Income, Taste, Population etc.)

NED University of Engineering & Technology, Karachi Page 1 of 2

Applied Economics for Engineers Prepared by Dr. Kashif Noor

Qdx = f ( Taste) ; Qdx = f ( Population)

Shift in a demand curve

Q-1 What happens to the demand curve for a college education if salaries
for college educated workers are rising rapidly? Qdx increases
Q-2 What will happen to the demand curve of social media if young people
lose their interest in it? Qdx decreases
Q-3 Will winter shift the demand curve for warm clothes outward or Inward?
outwards

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