Surjit economics

By Surjit Kaur

Roll No. 43

Subject: Economics

Std : XII

B.Ed 2010-11

K.J Somaiya Comprehensive College of Education, Training and Research

DEMAND ANALYSIS : CONTENT

MEANING

TYPES OF DEMAND

FACTOR/DETERMINANTS OF DEMAND

DEFINITION AND MEANING OF DEMAND

The amount of a particular Economic good or service that a consumer will want to purchase at a given price – Business Dictionary.com

In economics, demand is the desire to own anything and the ability to pay and willingness to buy that commodity.

FORMULA OF DEMAND

DEMAND = DESIRE + ABILITY TO PAY + WILLINGNESS TO BUY

TYPES OF DEMAND

It refers to demand of an individual for a particular product.

Factors influencing :1. Disposable Income2. Taste Preferences3. Price of related

products4. Credit Facilities, etc

It refers to total demand of all individuals for a particular commodity

Factors influencing :1. Size and Composition

of the population2. Social Customs, etc

Market DemandIndividual Demand

OTHER TYPES OF DEMAND

Direct Demand Demand for direct consumption. All consumer goods have Direct demand.

Derived Demand Demand for a commodity depends on the

demand for goods & services of other services.

For E.g.. Land, Capital, Labour etc

IMAGES OF DIRECT AND DERIVED DEMAND

TYPES OF DEMAND

JOINT DEMAND Two or more

commodities are demanded at same time.

For eg: Paper and pen, Car and petrol etc.

COMPOSITE DEMAND A single commodity or

service to satisfy various needs/ wants.

For eg: Electricity is needed for lighting, cooking and heating.

TYPES OF DEMAND

COMPETITIVE DEMAND Demand for a

commodity competes with its substitutes.

For Eg. Cold drinks such as Coca Cola and Pepsi etc

FACTORS/DETERMINANTS OF DEMAND

1. DETERMINANTS OF INDIVIDUAL DEMAND

2. DETERMINANTS OF MARKET DEMAND

FACTORS/DETERMINANTS INDIVIDUAL DEMAND

Price It influences the

demand for commodity.

Inversely varies with Demand

Demand

Price


Price of the Substitute

If a substitute is available at a lower price

Demand for cheaper substitute is more.


Price of Complementary Goods They have joint demand Two or more goods to satisfy a want, For Eg. Car and Petol

Utility Basic purpose of demand for particular demand A commodity does not provide utility to the

consumer, he will not demand it. For Eg. No demand for Cigarettes for a Non-Smoker.


Disposable Income

It is Basic requirement for demand.

It is the income after paying direct taxes.

For Eg. Rich people buy more goods than poor people.

FACTORS/DETERMINANTS MARKET DEMAND

Size of population

Larger the size of population, greater the demand for various goods and services

Size of population

Demand


Distribution of Income and Wealth It depends on equitable distribution of income

and wealth in an economy.

Standard of Living of the people Higher standard of living, leads to greater market

demand Standard of Living

Demand


Level of Taxation Progressive tax on wealth will lead to less disposable

income and hence the demand for many goods would be low.

Tax

Demand

Social Customs and Festivals It influence the market demand For E.g. In Diwali and Christmas there is great

demand for clothes, cards etc.

QUESTIONS

The relation between price and Demand is

.

Ans. Indirect

Name the two main types of Demand

Ans. Individual Demand Market Demand

QUESTIONS

Give any 2 Factors/ Determinants of Individual Demand.

Ans.1. Price2. Price of Substitutes3. Price of Complimentary goods4. Utility5. Disposable Income6. Taste, Preference, Habits

THANK YOU !!!!!THANK YOU !!!!!

Surjit economics

Education

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