Introduction-to-Demand-and-Supply and law of demand

This PPT is explain what is demand and what is supply this PPT useful for 11th class student and this PPT is most helpful economics student.#11th class student#economics#chapter 3 demand#chapter 4 Chapter 3 of Class 11 Economics focuses on demand and supply, two fundamental concepts that explain how markets function.

Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices, typically represented by the demand curve, which slopes downward. Key factors affecting demand include price, income levels, consumer preferences, and prices of related goods (substitutes and complements).

Supply is the quantity of a good or service that producers are willing and able to sell at different prices, depicted by the supply curve, which generally slopes upward. Factors influencing supply include production costs, technology, number of sellers, and expectations about future prices.

The interaction of demand and supply determines market equilibrium, where the quantity demanded equals the quantity supplied. Shifts in either curve due to external factors can lead to changes in equilibrium price and quantity, illustrating the dynamic nature of markets.
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In Chapter 3, "Demand and Supply," the concepts are explored in depth:

Demand

Law of Demand: As the price of a good decreases, the quantity demanded typically increases, and vice versa, resulting in a downward-sloping demand curve.

Determinants of Demand: These include:

Price of the Good: Higher prices lead to lower demand.

Income: Higher consumer income increases demand for normal goods, while demand for inferior goods may decrease.

Tastes and Preferences: Changes in consumer preferences can shift demand.

Prices of Related Goods: Substitute goods (e.g., tea and coffee) and complementary goods (e.g., printers and ink) influence demand.



Supply

Law of Supply: As the price of a good increases, the quantity supplied generally increases, resulting in an upward-sloping supply curve.

Determinants of Supply: These include:

Production Costs: Lower costs increase supply, while higher costs decrease it.

Technology: Advances can enhance production efficiency, increasing supply.

Number of Sellers: More sellers in the market typically increase supply.

Expectations: Anticipated future prices can affect current supply decisions.



Market Equilibrium

Equilibrium Price and Quantity: This is where the demand and supply curves intersect, indicating the market price and quantity sold.

Shifts in Curves: Factors can cause shifts in demand or supply, leading to new equilibrium points. For example:

An increase in demand (shift right) can raise both price and quantity.

An increase in supply (shift right) can lower prices and increase quantity.



Importance

Understanding demand and supply helps explain price formation and the allocation of resources in the economy, providing a foundation for further economic study.

supply#demand#supply#standard 11#eco

1. Introduction to
Demand and Supply

Demand and supply are fundamental economic concepts that describe the
relationship between buyers and sellers in a market. Understanding these
principles is crucial for businesses to effectively price and sell their
products or services.

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2. Defining Demand

1 Definition
Demand refers to the willingness and ability of consumers to
purchase a good or service at various prices.

2 Law of Demand

As the price of a good or service increases, the quantity demanded
decreases, and vice versa.

3 Determinants

Factors such as income, prices of related goods, and consumer
preferences influence the demand for a product.

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3. Factors Affecting Demand

Income Prices of Related Goods
Changes in consumer income can The price of substitutes and
lead to shifts in demand. complements can impact the

demand for a product.

Consumer Preferences

Changing tastes and preferences
can affect the demand for a good or
service.

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4. Defining Supply

Definition

Supply refers to the willingness and ability of
producers to sell a good or service at various prices.

Determinants

Factors such as production costs, technology, and the
number of sellers influence the supply of a product.

Law of Supply

As the price of a good or service increases, the
quantity supplied increases, and vice versa.

Equilibrium
The point where demand and supply intersect is the
equilibrium price and quantity.

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5. Factors Affecting Supply
Ex)

Production Costs

Changes in the cost of inputs, such as labor and raw materials, can affect
supply.

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Technology

Improvements in technology can increase the efficiency of production and
supply.

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Number of Sellers

An increase in the number of producers can lead to an increase in supply.
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6. Equilibrium Price and
Quantity
|

1 Demand
The demand curve shows the relationship between price and
quantity demanded.

2 —— Supply

The supply curve shows the relationship between price and
quantity supplied.

Equilibrium
The equilibrium price and quantity are determined where
the demand and supply curves intersect.

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Shifts in Demand and Supply

Demand Shift

A change in a determinant of
demand can cause the demand
curve to shift, leading to a new
equilibrium,

Supply Shift

A change in a determinant of
supply can cause the supply curve
to shift, leading to a new.
equilibrium.

New Equilibrium

The new equilibrium price and
quantity are determined where the
shifted demand and supply curves
intersect.

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8. Conclusion

Understanding the fundamental concepts of demand and supply is crucial
for businesses to make informed decisions and effectively manage their
operations. By analyzing the factors that influence demand and supply,
organizations can better navigate market dynamics and achieve their
strategic goals.

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