DEMAND

MEANING OF DEMAND

In economics, demand is a buyer's willingness and ability to pay a price for a specific quantity of a good or service

FACTORS AFFECTING DEMAND • Good's own price

• Price of related goods

• Personal Disposable Income

• Tastes or preferences

• Consumer expectations about future prices and income

• Population

• Nature of the good

DEMAND

LAW OF DEMAND

• In economics, the law states that, all else being equal, as the price of a product increases, quantity demanded lowers; likewise, as the price of a product decreases, quantity demanded increases.

EXTENSION AND CONTRACTION OF DEMAND

• When price falls quantity demanded of it rises, and when its price rises, its quantity demanded falls, other things remaining the same. When as a result of changes in price the quantity demanded rises or falls, extension or contraction in demand is said to have taken place.

EXTENSION N CONTRACTION

OF DEMAND