Demand Analysis & Elasticity of Demand Commerce YouTube Lecture Handouts Part 1

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Demand Analysis & Elasticity of Demand Commerce

Concept of Demand

  • The demand for a commodity is the quantity of the commodity which the consumer is willing to buy at a certain price during any particular period of time.
  • In economics, demand means effective demand which means there should be desire to own the good, sufficient money to buy it and willingness to spend the Demand and Price money.
Concept of Demand

Factors Affecting DEMAND & DEMAND Function

Factors Affecting DEMAND & DEMAND Function

Law of Demand

The law of demand states that there is an inverse relationship between price and quantity bought of a commodity, ceteris paribus.

Law of Demand

Slope of Demand Curve

The demand curve slopes downward because of:

  • Law of diminishing marginal utility (as given by Marshall) ,
  • Income effect,
  • Substitution effect, and
  • New consumers creating demand.
Slope of Demand Curve

Demand Schedule & Demand Curve

Demand Schedule & Demand Curve

Developed by: