TST MP CHAUKE SLIDES final PRESENTATION

The presentation explains the basics of economics concept of supply and demand , highlighting how prices influences consumers willingness to buy and producers willingness to sell. It outlines the laws of demands and supply, types of goods and key factors that affect markets behaviour such as income, preferences and production costs.

1. TEACHING STUDIES 3B Penelope Chauke Imaan Gattoo , 2024

2. What is Demand? The ability and desire of customers to buy large quantities of a particular good or service at different prices . Lina Nandy, 2009 2

3. Supply Producers' willingness to sell is influenced by their production costs, which include labor, interest, and raw material costs, in addition to the price they are paid. -The profitability of commodities in joint supply; the cost of production the profitability of alternative products nature and further unforeseen shocks the producers' objectives the producers' expectations 3 Kaushik Samanta. (2011)

4. THE LAWS OF DEMAND According to the laws of demand, fewer people will desire a good or service if its price rises, all other things being equal. Conversely, more people want to purchase a good or service as its price decreases. wphaneuf . (2013). THE LAWS OF SUPPLY According to the rule of supply, a good's quantity supplied will increase as its price rises, and vice versa, other things being equal. When prices increase, why do producers increase their output? -They aim for more earnings - They can pay for higher production marginal costs.

5. Demand Schedule Demand Schedule shows the different amounts of goods a consumer would want to buy at different prices. Quantity and price generally move in opposite directions Demand Curve : A curve showing the relationship between a product's price and its quantity demanded. Kinnar Majithia. (2010,)

6. Types of goods -Complementary goods are two goods taken at the same time. When the price of one goes up, demand for the other goes down. Example- car and petrol -Substitute goods are competitors of each other. When the price of one increases the demand for the other also increases. Example - pepsi and coke -Normal goods are those commodities whose demand increases when the income of the consumer increases. -Inferior goods are those commodities whose demand falls when the income of the consumer increases. Example : autotravel , kerosene -Giffen goods are those goods whose demand also moves in the same direction as the price - Snob or Veblen goods are those goods whose demand falls as the price falls Kinnar Majithia. (2010, )

7. Quantity Demanded Quantity demanded is the amount (number of units) of a product that would be bought by a household in a period of time i if it could buy all it wished at the current market price. jaganshettar. (2011,). 7 7

8. Demand means all the amounts of the commodity for which the consumer is ready to buy at various possible prices of a commodity. Quantity Demanded means a specific amount to be purchased against a specific price of a commodity. Example: A Consumers' Demand is 2 ice creams when the price per ice cream is Rs.15, and 4 ice cream if the price per ice cream is Rs.10. Quantity Demanded is 4 ice creams when price is Rs. 10 per ice cream. 8

9. Price of Related Goods: Demand for a good is also influenced by a shift in price of related goods. They are of two types: a) Substitute Goods: These are the goods which can be substituted for one another, i.e., tea and coffee, or ball pen and ink pen. In case of such goods, increase in price of one leads to increase in demand of the other and decrease in price of one leads to decrease in demand of the other. b) Complementary Goods: Complementary goods are such which supplement the demand for each other, and hence demanded at the same time. For Example Pen and ink, Car and Petrol. For complementary goods, a fall in the price of one leads to increase in the demand of the other and an increase in the price of one leads to decrease in the demand of others. 9

10. Consumer's Income: The ability to buy a commodity depends on consumer's income. When the consumer's income increases, they buy more and when the income falls, they buy less. Expectations: If the consumer expects that price in the future will be greater, he will buy more quantity now, at the prevailing price. Similarly, if he expects that price in the future will fall, he will buy smaller quantity now,or even postpone his demand. 10

11. Taste and Preferences: Taste and preferences include fashion, tradition etc. Taste and preferences can be altered by advertisement, change in fashion, weather, new discoveries, etc. Other things being equal, the demand for such products increases for which tastes and preferences are formed by consumers. Conversely, if any consumer has no taste or preference for any product, its demand decreases. 11 Shompa Nandi. (2010,).

12. 12 Change in Supply 1. Cost of Inputs 2. Productivity 3. Technology 4. Taxes 5. Subsidies 6. Future Expectations 7. Government Regulations 8. Number of Sellers guest461f41d. (2008,).

13. 13 Key Differences. (2022, May 27).

14. REFERENCE Lina Nandy. (2009, February 22). Slideshare.net. https://www.slideshare.net/lntrullin Kaushik Samanta. (2011, July 10). Slideshare.net. https://www.slideshare.net/kaushik8999Slideshare.net. https://www.slideshare.net/kaushik8999 wphaneuf . (2013, October 14). Slideshare.net. https://www.slideshare.net/wphaneuf Kinnar Majithia. (2010, October 23). Slideshare.net. https://www.slideshare.net/kinnar32 jaganshettar. (2011, December 8). Slideshare.net. https://www.slideshare.net/jaganshettar Shompa Nandi. (2010, November). Slideshare.net. https://www.slideshare.net/ShompaDhali PICTURES Kenton, W. (2019). Will Kenton. Investopedia. https://www.investopedia.com/contributors/53661/ Key Differences. (2022, May 27). Demand Vs Supply | Difference Between them with Definition & Comparison Chart. YouTube. https://www.youtube.com/watch?v=Mt4XxyfQoAM

15. guest461f41d. (2008, November 11). Slideshare.net. https://www.slideshare.net/guest461f41d