ICFAI UNIVERSITY

SUBJECT – ECONOMICS

TOPIC-DEMAND

GROUP MEMBER
ANANYA 19BSPDD01C025
AASI 19BSPDD01C003
PIYUSH 19BSPDD01C114
APUL 19BSPDD01C031
DEBJANI 19BSPDD01C043
AASHIMA 19BSPDD01C002
 DEMAND

WHAT IS DEMAND?
The amount/quantity of goods and services which a consumer wants
to buy at a particular price and during a specified period of time.

 Want
 Ability to pay
 Readiness to spend
 Time
 FACTORS/DETERMINANTS
• Price • Population
• Income of the Consumer • Distribution of wealth
• Price of related commodities • Price quality wealth
• Tastes and preference • Weather
• Future expectation • Govt. Policies
• Credit Facility
 LAW OF DEMAND
If the price is very high then the quantity demanded would be less or vice versa.
Quantity of Goods will be having Inverse Relation with the Price keeping other
factors constant or unchanged.

37.5
Quantity
Price
Demand(Qd)
30
P Demand Curve 30 1
r 22.5
i 20 2
c 15
e
15 3
7.5
10 4
0
0 1 2 3 4

Quantity Demand(Qd)
 LAWS OF DEMAND

“The greater the amount to be sold, the smaller must be the

price at which it is offered in order that it may find
purchasers; or in other words, the amount demanded increases
with a fall in price and diminishes with a rise in price”
By Alfred Marshall
 SHIFT IN DEMAND CURVE
Rightward shift- the increase in demand is Leftward shift-the decrease in demand is
shown by the rightward shift when the shown by the leftward shift when the quantity
quantity demanded rises with favourable demanded falls with favourable changes in
changes in others factors at the same price. others factors at the same price.

When demand increase the demand curve shifts rightwards and when demand decrease the
demand curve shift leftwards.
 VARIOUS REASON FOR SHIFT IN
DEMAND CURVE

A shift in the demand curve is when a determinant of demand other than price changes. It
occurs when demand for goods & services changes even though the price remains same.
The determinants responsible for the shift in demand curve are-
• Change in price of substitute goods.
• Change in price of complementary goods.
• Change in income of consumer.
• Change in tastes and preferences.
• Expectation of change in price in future.
• Change in Population.
• Change in distribution of income.
• Change in season and weather.
 MOVEMENT IN DEMAND CURVE
When there is a change in the quantity demanded of a particular commodity, because
of the change in price, with other factors remaining constant, there is a movement of
the quantity demanded along the same curve.

There are two movements along the demand

curve i.e. Upward movement and
Downward movement.
1. The upward movement is also called as
contraction in demand.
2. The downward movement is also called as
expansion in demand.
 EFFECTS THAT CHANGE THE DEMAND

SUBSTITUTION EFFECT: When the relative price of a goods and

services rises, people seek substitute for it, so the quantity demanded of
the foods and services decrease.

INCOME EFFECTS: When the price of a goods and services rises

relative to income, people cannot afford all the things they previously
brought, so the quantity demanded of the goods and services decrease.
 CHANGE IN DEMAND

 When some influence on buying plan other than the price of

Good changes there is change in demand for that good.
 The quality of the goods people plan to buy changes at each
and every price so there is new demand curve

 When demand increases the demand curve shift rightward.


When demand decreases the demand curve shift leftward .
THANK YOU