price and consumption presentation by KCC

just some random researched topic

1. Welcome

2. Welcome

3. Welcome PRICE AND CONSUMPTION RATE - A Short PowerPoint Presentation Assigned To: Nishant Baduwal (Roll 11) And Mahesh Majhi (Roll 10) ASSIGNED BY: MISS. KUSUM DEO (ENG. ECONOMICS)

4. Welcome PRICE AND CONSUMPTION RATE - A Short PowerPoint Presentation Assigned To: Nishant Baduwal (Roll 11) And Mahesh Majhi (Roll 10) ASSIGNED BY: MISS. KUSUM DEO (ENG. ECONOMICS) Definition of Correlation Statistical Measure that expresses the extent to which two variables are linearly related Importance of Studying Price and Consumption Rate Essential for understanding consumer behavior. Helps in Economic Forecasting and policy making. Importance for businesses for pricing strategies. Factors Influencing Correlation Elasticity of Demand: Price Elasticity : Measure of how much the quantity demanded of a good responds to a change in the price. Inelastic Goods : Necessities with fewer substitutes (e.g., Petroleum, medications). Elastic Goods : Luxuries or goods with many substitutes (e.g., electronics, clothing). Consumer Income Changes in income levels can shift the demand curve, affecting consumption rates.

5. Welcome PRICE AND CONSUMPTION RATE - A Short PowerPoint Presentation Assigned To: Nishant Baduwal (Roll 11) And Mahesh Majhi (Roll 10) ASSIGNED BY: MISS. KUSUM DEO (ENG. ECONOMICS) Definition of Correlation Statistical Measure that expresses the extent to which two variables are linearly related Importance of Studying Price and Consumption Rate Essential for understanding consumer behavior. Helps in Economic Forecasting and policy making. Importance for businesses for pricing strategies. Factors Influencing the Correlation Elasticity of Price Elasticity : Measure of how much the quantity demanded of a good responds to a change in the price. Inelastic Goods : Necessities with fewer substitutes (e.g., gasoline, medications). Elastic Goods : Luxuries or goods with many substitutes (e.g., electronics, clothing). Factors Influencing Correlation Elasticity of Demand: Price Elasticity : Measure of how much the quantity demanded of a good responds to a change in the price. Inelastic Goods : Necessities with fewer substitutes (e.g., Petroleum, medications). Elastic Goods : Luxuries or goods with many substitutes (e.g., electronics, clothing). Consumer Income Changes in income levels can shift the demand curve, affecting consumption rates.

6. PRICE AND CONSUMPTION RATE Definition of Correlation Statistical Measure that expresses the extent to which two variables are linearly related Importance of Studying Price and Consumption Rate Essential for understanding consumer behavior. Helps in Economic Forecasting and policy making. Importance for businesses for pricing strategies. Price and Consumption Rate Basic Economic Theory: As the price of a good increases, the quantity demanded generally decreases, and vice versa. Factors Influencing the Correlation Elasticity of Price Elasticity : Measure of how much the quantity demanded of a good responds to a change in the price. Inelastic Goods : Necessities with fewer substitutes (e.g., gasoline, medications). Elastic Goods : Luxuries or goods with many substitutes (e.g., electronics, clothing). Consumption Rate: Refers to the quantity of a product that consumers are willing and able to purchase at a given price over a specific period. Consumer Income: Changes in income levels can shift the demand curve, affecting consumption rates. Factors Influencing Correlation Elasticity of Demand: Price Elasticity : Measure of how much the quantity demanded of a good responds to a change in the price. Inelastic Goods : Necessities with fewer substitutes (e.g., Petroleum, medications). Elastic Goods : Luxuries or goods with many substitutes (e.g., electronics, clothing). Consumer Income Changes in income levels can shift the demand curve, affecting consumption rates.

7. Definition of Correlation Statistical Measure that expresses the extent to which two variables are linearly related Importance of Studying Price and Consumption Rate Essential for understanding consumer behavior. Helps in Economic Forecasting and policy making. Importance for businesses for pricing strategies. Price and Consumption Rate Basic Economic Theory: As the price of a good increases, the quantity demanded generally decreases, and vice versa. Factors Influencing the Correlation Elasticity of Price Elasticity : Measure of how much the quantity demanded of a good responds to a change in the price. Inelastic Goods : Necessities with fewer substitutes (e.g., gasoline, medications). Elastic Goods : Luxuries or goods with many substitutes (e.g., electronics, clothing). Consumption Rate: Refers to the quantity of a product that consumers are willing and able to purchase at a given price over a specific period. Consumer Income: Changes in income levels can shift the demand curve, affecting consumption rates. Necessities, Luxuries, And Price-Demand Goods and Services Consumer Goods & Services : Products or Services that are directly used by people to satisfy their wants. Example: Food, Clothing, T.V. , Haircut, Medical Service. Producer Goods & Services : Products or Services that are used to produce Consumer Goods & Services or other Producer goods. Example: Machine Tools, Factory Buildings, Goods and services are categorized into necessities and luxuries, though these terms are relative and influenced by individual perceptions and economic status The distinction between luxuries and necessities is more straightforward for consumer goods than for producer goods. Nonetheless, a fundamental economic principle applies to all goods and services: the relationship between price and demand. Factors Influencing Correlation Elasticity of Demand: Price Elasticity : Measure of how much the quantity demanded of a good responds to a change in the price. Inelastic Goods : Necessities with fewer substitutes (e.g., Petroleum, medications). Elastic Goods : Luxuries or goods with many substitutes (e.g., electronics, clothing). Consumer Income Changes in income levels can shift the demand curve, affecting consumption rates.

8. Price and Consumption Rate Basic Economic Theory: As the price of a good increases, the quantity demanded generally decreases, and vice versa. Factors Influencing the Correlation Elasticity of Price Elasticity : Measure of how much the quantity demanded of a good responds to a change in the price. Inelastic Goods : Necessities with fewer substitutes (e.g., gasoline, medications). Elastic Goods : Luxuries or goods with many substitutes (e.g., electronics, clothing). Consumption Rate: Refers to the quantity of a product that consumers are willing and able to purchase at a given price over a specific period. Consumer Income: Changes in income levels can shift the demand curve, affecting consumption rates. Necessities, Luxuries, And Price-Demand Goods and Services Consumer Goods & Services : Products or Services that are directly used by people to satisfy their wants. Example: Food, Clothing, T.V. , Haircut, Medical Service. Producer Goods & Services : Products or Services that are used to produce Consumer Goods & Services or other Producer goods. Example: Machine Tools, Factory Buildings, Goods and services are categorized into necessities and luxuries, though these terms are relative and influenced by individual perceptions and economic status The distinction between luxuries and necessities is more straightforward for consumer goods than for producer goods. Nonetheless, a fundamental economic principle applies to all goods and services: the relationship between price and demand. WHAT HAPPENS WHEN PRICES FALL?

9. Necessities, Luxuries, And Price-Demand Goods and Services Consumer Goods & Services : Products or Services that are directly used by people to satisfy their wants. Example: Food, Clothing, T.V. , Haircut, Medical Service. Producer Goods & Services : Products or Services that are used to produce Consumer Goods & Services or other Producer goods. Example: Machine Tools, Factory Buildings, Goods and services are categorized into necessities and luxuries, though these terms are relative and influenced by individual perceptions and economic status The distinction between luxuries and necessities is more straightforward for consumer goods than for producer goods. Nonetheless, a fundamental economic principle applies to all goods and services: the relationship between price and demand. WHAT HAPPENS WHEN PRICES FALL? PRICE QUANTITY The quantity demanded increases as the price gets lower! However, there's different demand curve for every good and services Likely inelastic, suggesting minimal change in quantity demanded with price changes. High elasticity, indicating significant changes in quantity demanded with price changes . Moderate elasticity, with noticeable but less drastic changes. Lower elasticity, showing smaller changes in demand with price fluctuations.

10. Necessities, Luxuries, And Price-Demand Goods and Services Consumer Goods & Services : Products or Services that are directly used by people to satisfy their wants. Example: Food, Clothing, T.V. , Haircut, Medical Service. Producer Goods & Services : Products or Services that are used to produce Consumer Goods & Services or other Producer goods. Example: Machine Tools, Factory Buildings, Goods and services are categorized into necessities and luxuries, though these terms are relative and influenced by individual perceptions and economic status The distinction between luxuries and necessities is more straightforward for consumer goods than for producer goods. Nonetheless, a fundamental economic principle applies to all goods and services: the relationship between price and demand. WHAT HAPPENS WHEN PRICES FALL? QUANTITY PRICE However, there's different demand curve for every good and services Likely inelastic, suggesting minimal change in quantity demanded with price changes. High elasticity, indicating significant changes in quantity demanded with price changes . Moderate elasticity, with noticeable but less drastic changes. Lower elasticity, showing smaller changes in demand with price fluctuations.

11. Necessities, Luxuries, And Price-Demand Goods and Services Consumer Goods & Services : Products or Services that are directly used by people to satisfy their wants. Example: Food, Clothing, T.V. , Haircut, Medical Service. Producer Goods & Services : Products or Services that are used to produce Consumer Goods & Services or other Producer goods. Example: Machine Tools, Factory Buildings, Goods and services are categorized into necessities and luxuries, though these terms are relative and influenced by individual perceptions and economic status The distinction between luxuries and necessities is more straightforward for consumer goods than for producer goods. Nonetheless, a fundamental economic principle applies to all goods and services: the relationship between price and demand. DEMAND PRICE Linear demand curves are commonly used in economic analysis for their simplicity and ease of calculation for   Quantity Price Price, Demand and Quantity Demand Law of Demand: Inverse relationship between price and quantity There are 3 reasons for the Law of demand

12. Necessities, Luxuries, And Price-Demand Goods and Services Consumer Goods & Services : Products or Services that are directly used by people to satisfy their wants. Example: Food, Clothing, T.V. , Haircut, Medical Service. Producer Goods & Services : Products or Services that are used to produce Consumer Goods & Services or other Producer goods. Example: Machine Tools, Factory Buildings, Goods and services are categorized into necessities and luxuries, though these terms are relative and influenced by individual perceptions and economic status The distinction between luxuries and necessities is more straightforward for consumer goods than for producer goods. Nonetheless, a fundamental economic principle applies to all goods and services: the relationship between price and demand. DEMAND PRICE Linear demand curves are commonly used in economic analysis for their simplicity and ease of calculation for   Quantity Price Price, Demand and Quantity Demand Law of Demand: Inverse relationship between price and quantity There are 3 reasons for the Law of demand Substitution Effect: When price goes up for Ice-cream, People substitute away from Ice-cream and go buy other products like candy-bars. Income Effect: When the price goes up for the Ice-cream, people will buy less Ice-cream because they have less purchasing power. Law of Diminishing Marginal Utility: As people consume more and more Ice-cream, they get less and less additional satisfaction or happiness. So the price has to fall to increase the quantity that the people will buy

13. Necessities, Luxuries, And Price-Demand Goods and services are categorized into necessities and luxuries, though these terms are relative and influenced by individual perceptions and economic status The distinction between luxuries and necessities is more straightforward for consumer goods than for producer goods. Nonetheless, a fundamental economic principle applies to all goods and services: the relationship between price and demand. Quantity Price Price, Demand and Quantity Demand Substitution Effect: When price goes up for Ice-cream, People substitute away from Ice-cream and go buy other products like candy-bars. Income Effect: When the price goes up for the Ice-cream, people will buy less Ice-cream because they have less purchasing power. Law of Diminishing Marginal Utility: As people consume more and more Ice-cream, they get less and less additional satisfaction or happiness. So the price has to fall to increase the quantity that the people will buy Law of Demand: Inverse relationship between price and quantity There are 3 reasons for the Law of demand A change in price causes a move along the curve

14. Quantity Price Price, Demand and Quantity Demand A change in price causes a move along the curve But what if something else changes instead of price ?? Substitution Effect: When price goes up for Ice-cream, People substitute away from Ice-cream and go buy other products like candy-bars. Income Effect: When the price goes up for the Ice-cream, people will buy less Ice-cream because they have less purchasing power. Law of Diminishing Marginal Utility: As people consume more and more Ice-cream, they get less and less additional satisfaction or happiness. So the price has to fall to increase the quantity that the people will buy Law of Demand: Inverse relationship between price and quantity There are 3 reasons for the Law of demand

15. Quantity Price Price, Demand and Quantity Demand A change in price causes a move along the curve But what if something else changes that causes the demand curve to shift ? There are 5 shifters or determinants of demand that causes the demand curve to increase and shift to the right or decrease and shift to the left Preferences Number of buyers Price of related goods Income Expectations There are 5 shifters or determinants of demand that causes the demand curve to increase and shift to the right or decrease and shift to the left: Preferences Number of buyers Price of related goods Income Expectations

16. Quantity Price Price, Demand and Quantity Demand A change in price causes a move along the curve But what if something else changes that causes the demand curve to shift ? There are 5 shifters or determinants of demand that causes the demand curve to increase and shift to the right or decrease and shift to the left: Preferences Number of buyers Price of related goods Income Expectations

17. Quantity Price Price, Demand and Quantity Demand There are 5 shifters or determinants of demand that causes the demand curve to increase and shift to the right or decrease and shift to the left: Preferences Number of buyers Price of related goods Income Expectations Preferences: It’s 100 degrees outside and the demand for Ice-cream shifts to the right There is no change in the price of Ice-cream, it’s the other factor that is causing the demand to go up. (i.e. People are buying more because it’s a hot day outside)

18. Quantity Price Price, Demand and Quantity Demand There are 5 shifters or determinants of demand that causes the demand curve to increase and shift to the right or decrease and shift to the left: Preferences Number of buyers Price of related goods Income Expectations And it could shift to the left if it was a cold day in the winter, meaning there’s less demand for Ice-cream.

19. Quantity Price Price, Demand and Quantity Demand There are 5 shifters or determinants of demand that causes the demand curve to increase and shift to the right or decrease and shift to the left: Preferences Number of buyers Price of related goods Income Expectations 2. Number of buyers: More consumers will increase the demand while less consumers would decrease the demand 3. Price of related goods: This is not the price of Ice-cream but some other goods like candy-bar. Candy-bar and Ice-Cream are substitutes so if the price goes up for candy-bar people are going to buy more Ice-cream and the demand curve is going to shift right. But if the price of ice-cream cone goes up the demand curve is going to shift left since its not substitute for ice-cream.

20. Quantity Price Price, Demand and Quantity Demand There are 5 shifters or determinants of demand that causes the demand curve to increase and shift to the right or decrease and shift to the left: Preferences Number of buyers Price of related goods Income Expectations 4. Income: It depends on the type of the product: Normal goods: when income goes up people buy more of it and when income goes down people buy less of it. Example: Pizza Inferior goods: When income goes up people buy less of it and when income goes down people buy more of it. Example: Wai Wai 5. Expectations: This is when people expect the prices to go up in near future and end up increasing the demand THANK YOU

21. Quantity Price Price, Demand and Quantity Demand 4. Income: It depends on the type of the product: Normal goods: when income goes up people buy more of it and when income goes down people buy less of it. Example: Pizza Inferior goods: When income goes up people buy less of it and when income goes down people buy more of it. Example: Wai Wai 5. Expectations: This is when people expect the prices to go up in near future and end up increasing the demand THANK YOU REFERENCES: Book: Engineering Economy Degarmo , E. Paul 7 th edition(page no. 23) Youtube : Supply and demand in 8 minutes by Jacob Clifford" https://www.youtube.com/watch?v=kIFBaaPJUO0 The Demand Curve by Marginal Revolution University https://www.youtube.com/watch?v=kIFBaaPJUO0&t=69s

22. THANK YOU REFERENCES: Book: Engineering Economy Degarmo , E. Paul 7 th edition(page no. 23) Youtube : Supply and demand in 8 minutes by Jacob Clifford" https://www.youtube.com/watch?v=kIFBaaPJUO0 The Demand Curve by Marginal Revolution University https://www.youtube.com/watch?v=kIFBaaPJUO0&t=69s