DEMAND

Is the willingness and ability to Pay

FACTORS AFFECTING
DEMAND
1.Change of price of a
commodity.
If the price of commodities
increases then lower amount of
that commodity will be
demanded and vice versa
Factors cont............

2.Change in test and fashion.

The change in test and fashion will
lead to decrease or increase in
demand of commodity. The choice
of a consumer is influenced by
age, sex and education
Factors cont.....

3. Change in population size.

If there is increase in population
children in the society the
demand for toys will increase and
vice versa.
Factors cont......

4.change in income of a
consumer.
For most cases many goods will
be demanded more as the
income of the consumer at the
same price
Factors cont.....

5.The price of other

commodity.eg coca_cola,
azam_cola, Pepsi_cola, mo_cola
6.Expectation of the future. eg
drought
7. Advertising
DEMAND SCHEDULE

• Is the table or chart show price

and quantity of goods bought
DEMAND CULVE

Is the graphical combinations of

prices and quantity demanded
COMPOSITE DEMAND
Is a commodity that can meet or be
demanded to satisfy more than one
need. Example
i) steel, can be used to manufacture
ship, motor car, machine,knives etc
ii) water can be used for drinking,
cleaning
COMPOSITE CURVE

• Is the collection of curve joined

end to end
FIRST LAW OF DEMAND AND
SUPPLY
• State that
• "when the price of commodity
fall the quantity of good that is
demand will be increased and
when the price of commodity
raise the quantity demanded
decreased
EFFECTIVE DEMAND

• Is the willingness and ability of a

consumer to purchase goods at
a different price
UTILITY

• Is the of goods and services to

satisfy human wants