Post on 29-Nov-2014
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By Surjit Kaur
Roll No. 43
Subject: Economics
Std : XII
B.Ed 2010-11
K.J Somaiya Comprehensive College of Education, Training and Research
DEMAND ANALYSIS : CONTENT
MEANING
TYPES OF DEMAND
FACTOR/DETERMINANTS OF DEMAND
DEFINITION AND MEANING OF DEMAND
The amount of a particular Economic good or service that a consumer will want to purchase at a given price – Business Dictionary.com
In economics, demand is the desire to own anything and the ability to pay and willingness to buy that commodity.
FORMULA OF DEMAND
DEMAND = DESIRE + ABILITY TO PAY + WILLINGNESS TO BUY
TYPES OF DEMAND
It refers to demand of an individual for a particular product.
Factors influencing :1. Disposable Income2. Taste Preferences3. Price of related
products4. Credit Facilities, etc
It refers to total demand of all individuals for a particular commodity
Factors influencing :1. Size and Composition
of the population2. Social Customs, etc
Market DemandIndividual Demand
OTHER TYPES OF DEMAND
Direct Demand Demand for direct consumption. All consumer goods have Direct demand.
Derived Demand Demand for a commodity depends on the
demand for goods & services of other services.
For E.g.. Land, Capital, Labour etc
IMAGES OF DIRECT AND DERIVED DEMAND
TYPES OF DEMAND
JOINT DEMAND Two or more
commodities are demanded at same time.
For eg: Paper and pen, Car and petrol etc.
COMPOSITE DEMAND A single commodity or
service to satisfy various needs/ wants.
For eg: Electricity is needed for lighting, cooking and heating.
TYPES OF DEMAND
COMPETITIVE DEMAND Demand for a
commodity competes with its substitutes.
For Eg. Cold drinks such as Coca Cola and Pepsi etc
FACTORS/DETERMINANTS OF DEMAND
1. DETERMINANTS OF INDIVIDUAL DEMAND
2. DETERMINANTS OF MARKET DEMAND
FACTORS/DETERMINANTS INDIVIDUAL DEMAND
Price It influences the
demand for commodity.
Inversely varies with Demand
Demand
Price
FACTORS/DETERMINANTS INDIVIDUAL DEMAND
Price of the Substitute
If a substitute is available at a lower price
Demand for cheaper substitute is more.
FACTORS/DETERMINANTS INDIVIDUAL DEMAND
Price of Complementary Goods They have joint demand Two or more goods to satisfy a want, For Eg. Car and Petol
Utility Basic purpose of demand for particular demand A commodity does not provide utility to the
consumer, he will not demand it. For Eg. No demand for Cigarettes for a Non-Smoker.
FACTORS/DETERMINANTS INDIVIDUAL DEMAND
Disposable Income
It is Basic requirement for demand.
It is the income after paying direct taxes.
For Eg. Rich people buy more goods than poor people.
FACTORS/DETERMINANTS MARKET DEMAND
Size of population
Larger the size of population, greater the demand for various goods and services
Size of population
Demand
FACTORS/DETERMINANTS MARKET DEMAND
Distribution of Income and Wealth It depends on equitable distribution of income
and wealth in an economy.
Standard of Living of the people Higher standard of living, leads to greater market
demand Standard of Living
Demand
FACTORS/DETERMINANTS MARKET DEMAND
Level of Taxation Progressive tax on wealth will lead to less disposable
income and hence the demand for many goods would be low.
Tax
Demand
Social Customs and Festivals It influence the market demand For E.g. In Diwali and Christmas there is great
demand for clothes, cards etc.
QUESTIONS
The relation between price and Demand is
.
Ans. Indirect
Name the two main types of Demand
Ans. Individual Demand Market Demand
QUESTIONS
Give any 2 Factors/ Determinants of Individual Demand.
Ans.1. Price2. Price of Substitutes3. Price of Complimentary goods4. Utility5. Disposable Income6. Taste, Preference, Habits
THANK YOU !!!!!THANK YOU !!!!!