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Managerial Economics Bba Ii Neelam Pathania Aryan
Managerial Economics Bba Ii Neelam Pathania Aryan
CLASS – BBA II
SUBMITTED BY - ARYAN
DEMAND
• ‘Demand’ is the very first and basic concept
which we learn in the subject of Economics.
• Demand is the number of goods that the
customers are ready and willing to buy at
several prices during a given time frame.
DETERMINANTS OF
DEMAND
Necessity good
Inferior good
• Taste and preferences – Demand for the goods and services
aslo depends upon the individual taste and preferences . If
the tastes and preferences are positive then demand
increased and vice versa .
• For example - change in fashion and climate.
• Expectations (E) – If the consumer expects that price will
rise high of a good in future , he will buy more goods .
Contrary , if consumer expects that price of good
decrease in future, he will buy less goods.
For example – If the price of a computer is expected to fall
next month, the demand for computers today decreases .
• Population (P) – If the population increases the
demand also increases and on the other hand
population decreases then the demand falls. Increase
and decrease in the population depends upon death
rate and birth rate every year.
• Distribution of income (Yd) – If the income is equitably
distributed, there will be more demand but when the
income is not equitably distributed , there will be less
demand.
For example, if the CEO earns ₹10,000,000 per year and
average worker’s pay is ₹50,000, the wage ratio is 200:1.
Thank You !