Post on 28-Jul-2015
transcript
Demand & Elasticity Of DemandGROUP-2
SOURCES: http://220.227.161.86/16781Demand_n_Elasticity.pd
1. Introductory Microeconomics and Macroeconomics - TR Jain, VK .Ohri
2. Managerial Economics-Dominick Salvatore
Definitions Of Demand
Demand refers to the Quantities of Commodity that the consumers are able to buy at each possible price during a given period of time, other things being equal.
Demand is the Ability and willingness to buy Specific Quantity of the good at Alternative Prices in given Time Period, Ceteris Paribus.
By: Gaurav Wadhwa
Determinants of Demand:
Price of the CommodityPrice of Related CommoditiesChange in income of consumerTaste and Preferences of ConsumersOther Factors
Price of Related Commodities
Change in income of consumerDemand for normal goods tend to
increase with increase in income, and vice versa.
Demand for inferior goods like coarse grain tends to decrease with increase in income, and vice versa.
Law Of Demand
Law Of Demand states that people will buy more at lower price and by less at higher price, Ceteris paribus
By: Samuelson
The Law Of Demand states that quantity demanded increases with fall in price and diminishes when Price Increases, other thing being equal.
By: Marshall
By: Probir Roy
Explanation Law Of Demand may be explained with the
help of Demand Schedule:
It is defined as a Table which shows quantities of a Given Commodity which an individual consumer will buy at all possible prices at a given time.
Demand Curve
The Demand Curve slopes downwards from Left to Right, meaning thereby that when Price is High Demand is Low and Vice Versa.
Assumptions To Law
Consumers are rationalConsumer’s income remains constantConsumers do not expect a change in price in
the futureThere is no change in the price of substitute
and complementary goodsThere is no change in tastes, fashions, etc of
the consumerGoods should be normal
Expansion And Contraction Of Demand
By: Mayank Sharma
Diagram
Increase And Decrease Of Demand
Diagram
Elasticity Of Demand
It Answers the “Question By How Much”?
Elasticity of Demand is defined as the responsiveness of the quantity demanded of a commodity to change on one of the variable on which demand depends.
By: Rohit Lamba
Price Elasticity Of Demand It is Measured as a percentage Change in Quantity
Demanded divides by Percentage Change In Price, Other thing Remaining Same.
Degrees Of Price Elasticity Of Demand
Determinants Availability of SubstitutesPosition of Community in consumer’s
BudgetNature of need that a community satisfiedNumber of uses to a community is putPeriodConsumer Habits
Any Questions Or Feedback ?