Demand

▶ Demand- Want+Purchasing Power+Willingness to purchase.

▶ Quantity Demand- It is the specific number of Commodity which a consumer is willing to purchase at a specific price rate at a point of time.

▶ Demand- It is different number of Commodity willing to be purchased by a consumer at different price rates at a point of time.

▶ Demand Schedule- It is tabular representation of Demand.

▶ Demand Curve- It is graphical representation of Demand.

▶ Individual Demand- It is total number of Commodity willing to be purchased by an individual consumer at different price rates at a point of time.

▶ Individual Demand Schedule- It is tabular representation of Individual Demand.

▶ Individual Demand Curve- It is graphical representation of Individual Demand.

▶ Market Demand- It is different number of Commodity willing to be purchased by the whole market at different price rates at a point of time.

▶ Market Demand Schedule- It is tabular representation of Market Demand.

▶ Market Demand Curve- It is graphical representation of Market Demand.

▶ Law of Demand: Assuming other things constant, When price of a commodity increases quantity demand decreases and when price of a commodity decreases quantity demand increases.
           ◆ Px⬆   Q.D ⬇        where, Px= Price and,
           ◆ Px⬇   Q.D ⬆.        Q.D= Quantity Demand.

▶ Factors affecting Demand/ Demand Function/ Determinants Of Demand:

               Dx = ( Px, Pr, Y, T, E, N, Yd )

1. Price of Commodity(Px) :
                Px⬆.    D⬇
                Px⬇.    D⬆

2. Price of Related Goods(Pr) :

(i) Substitute Goods: Example- Tea and Coffee.
               Pr ⬆.     D⬆
               Pr⬇.      D⬇
(ii) Complement Goods: Example- Pen and refill.
               Pr⬆.      D⬇
               Pr⬇.      D⬆

3. Income of the consumer(Y) :
       Normal Goods.                      Inferior Goods
         Y⬇       D⬇.                                Y⬇.      D⬆
         Y⬆.      D⬆.                                Y⬆.      D⬇

4. Taste and Preference(T) :
               T⬆.     D⬆
               T⬇.     D⬇

5. Expected Price in Future(E) :
                E⬆.     D⬆
                E⬇.     D⬇

6. Number of Buyers/ Population Size(N) :
                  N⬆.    D⬆
                  N⬇.    D⬇

7. Distribution of Income(Yd) :
  Equality (Distributed Income)-     D⬆
   Inequality(Distributed Unequally)- D⬇     

▶ Assumptions of Law of Demand :
(i) Taste and Preference of the consumer remains constant.

(ii) There is no change in the income of buyer.

(iii) Prices of Related Goods do not change.

(iv) Consumer do not expect any significant change in availability of the commodity in the near future.