Demand Differences

Engineering economics and management

1. GANDHINAGAR INSTITUTE OF TECHNOLOGY Engineering Economics and Management (2130004) Active Learning Assignment “ Topics : DEMAND DIFFERENCES” Guided By : Prof. Prashant Pandya Branch : Mechanical Engineering Division : A

2. Himanshi Gupta (140120119057) Prachi Sharma (140120119216 ) Vidisha Vyas (140120119253) GROUP OF THE STUDENTS

3. MEANING OF DEMAND By demand, we mean the various quantities of a given commodity or service which consumers would buy in one market in a given period of time, at various prices, or at various incomes, or at various prices of related goods. Want + Buying power + willingness to purchase at a given price and given time is called demand.

4. SHORT-RUN DEMAND AND LONG-RUN DEMAND SHORT-RUN DEMAND:- Short-run demand refers to existing demand, with its immediate reaction to price changes, income fluctuation etc. Period during which only some factors or variables can be changed because there is not enough time to change the others. Some inputs variable, some fixed. New firms do not enter the industry, and existing firms do not exit.

5. LONG-RUN DEMAND:- Long-run demand is that which will ultimately exist as a result of changes in pricing, promotion or product improvement, after enough time has elapsed to let the market adjust itself to the new situation. All inputs variable, firms can enter and exit the market place. SHORT-RUN DEMAND AND LONG-RUN DEMAND

6. DERIVED DEMAND AND AUTONOMOUS DEMAND DERIVED DEMAND:- A derived demand is one, which is derived from demand of some other good. The demand for a good that arises because of the demand for some other good is called derived demand.

7. AUTONOMOUS DEMAND:- An Autonomous demand for a product is one that arises independently of the demand for any other good Autonomous demand arises as a result of demonstration effect, rise in income, and increase in population and advertisement of new products.  DERIVED DEMAND AND AUTONOMOUS DEMAND

8. PRODUCER’S GOODS AND CONSUMER’S GOODS PRODUCER’S GOODS:-  P roducer goods are purchased as an input to produce another good .  The goods used as inputs at the beginning of the production line are  producer goods.

9. CONSUMER GOODS:- Consumer goods are tangible goods that are purchased for direct consumption to satisfy a human need or want. The good that is produced at the end of the production line is a consumer good.  PRODUCER’S GOODS AND CONSUMER’S GOODS

10. DURABLE GOODS AND NON-DURABLE GOODS DURABLE GOODS:- Durable goods are goods which can be consumed more than once over a period of time The demand for durable goods is likely to be derived demand

11. DURABLE GOODS AND NON-DURABLE GOODS NON DURABLE GOODS:- Non durable consumer goods are goods which can not be consumed more than once These will meet only the current demand

12. INDUSTRY DEMAND AND COMPANY DEMAND INDUSTRY DEMAND:- Industry demand means the demand is used to denote the total demand for the products of a particular industry. COMPANY DEMAND:- Company demand means the demand denotes the demand for the products of a particular company.

13. Thank You 