itft-Demand
description
Transcript of itft-Demand
DEMAND
MEANING OF DEMAND
In economics, demand is a buyer's willingness and ability to pay a price for a specific quantity of a good or service
FACTORS AFFECTING DEMAND • Good's own price
• Price of related goods
• Personal Disposable Income
• Tastes or preferences
• Consumer expectations about future prices and income
• Population
• Nature of the good
DEMAND
LAW OF DEMAND
• In economics, the law states that, all else being equal, as the price of a product increases, quantity demanded lowers; likewise, as the price of a product decreases, quantity demanded increases.
EXTENSION AND CONTRACTION OF DEMAND
• When price falls quantity demanded of it rises, and when its price rises, its quantity demanded falls, other things remaining the same. When as a result of changes in price the quantity demanded rises or falls, extension or contraction in demand is said to have taken place.
EXTENSION N CONTRACTION
OF DEMAND