Demand & Elasticity Of Demand

Demand & Elasticity Of Demand

1. Demand & Elasticity Of Demand GROUP-2 SOURCES: http://220.227.161.86/16781Demand_n_Elasticity.pd Introductory  Microeconomics  and Macroeconomics -  TR Jain , VK . Ohri Managerial Economics-Dominick Salvatore

2. Definitions Of Demand Demand refers to the Quantities of Commodity that the consumers are able to buy at each possible price during a given period of time, other things being equal. Demand is the Ability and willingness to buy Specific Quantity of the good at Alternative Prices in given Time Period, Ceteris Paribus. By: Gaurav Wadhwa

3. Determinants of Demand: Price of the Commodity Price of Related Commodities Change in income of consumer Taste and Preferences of Consumers Other Factors

4. Price of Related Commodities

5. Change in income of consumer Demand for normal goods tend to increase with increase in income, and vice versa. Demand for inferior goods like coarse grain tends to decrease with increase in income, and vice versa.

6. Law Of Demand Law Of Demand states that people will buy more at lower price and by less at higher price, Ceteris paribus By: Samuelson The Law Of Demand states that quantity demanded increases with fall in price and diminishes when Price Increases, other thing being equal. By: Marshall By: Probir Roy

7. Explanation Law Of Demand may be explained with the help of Demand Schedule : It is defined as a Table which shows quantities of a Given Commodity which an individual consumer will buy at all possible prices at a given time.

8. Demand Curve The Demand Curve slopes downwards from Left to Right, meaning thereby that when Price is High Demand is Low and Vice Versa .

9. Assumptions To Law Consumers are rational Consumer’s income remains constant Consumers do not expect a change in price in the future There is no change in the price of substitute and complementary goods There is no change in tastes, fashions, etc of the consumer Goods should be normal

10. Expansion And Contraction Of Demand By: Mayank Sharma

11. Diagram

12. Increase And Decrease Of Demand

13. Diagram

14. Elasticity Of Demand It Answers the “ Question By How Much ”? Elasticity of Demand is defined as the responsiveness of the quantity demanded of a commodity to change on one of the variable on which demand depends. By: Rohit Lamba

15. Price Elasticity Of Demand It is Measured as a percentage Change in Quantity Demanded divides by Percentage Change In Price, Other thing Remaining Same.

16. Degrees Of Price Elasticity Of Demand

17. Determinants Availability of Substitutes Position of Community in consumer’s Budget Nature of need that a community satisfied Number of uses to a community is put Period Consumer Habits

18. Any Questions Or Feedback ?