Theory of Demand
1. Meaning
- In general sense demand signifies desire to have something by a person or by an individual.
- But in economics demand is effective desire backed by ability to pay and willingness to pay. This means to be a demand three components desire, ability to pay and willingness to pay must be fulfilled.
- In another words other things remaining the same, the total amount of goods and services purchased by consumer at various prices during the given period of time is known as demand.
2. Types of Demand
- Types of demand are as follows:
a. Price Demand
- Other things remaining the same, the total amount of goods and services demanded by consumer at various prices during the given period of time is known as the price demand. When amount of goods and services demanded by consumer is related with its price then it is called price demand.
b. Income Demand
c. Cross Demand
d. Derived Demand
f. Joint Demand
3. Determinants of Demand
Quantity demand for any commodity influenced by various factors. All those factors which influence the quantity demanded for any commodity is known as determinants of demand. There are various factors influencing quantity demanded for a commodity among them major determinants are as follows:
a) Price of Own Commodity
b) Income Level of Consumer
c) Price of Related Goods
d) Taste, Habit & Preferences of Consumer
e) Size of Composition of Population
f) Government Policy
g) Distribution of Income
h) Future Expectation Regarding Change in Price
i) Availability of Credit Facility
j) Advertisement
4. Concept of Demand Function
5. Law of Demand
6. Derivation of Individual Demand Curve
7. Derivation of Market Demand Curve
8. Movement & Shift in Demand
8.1 Movement in Demand
8.2 Shift in Demand
Theory of Supply
1. Meaning
2. Types of Supply
3. Determinants of Supply
4. Concept of Supply Function
5. Law of Supply
6. Derivation of Individual Supply Curve
7. Derivation of Market Supply Curve
8. Movement & Shift in Supply
8.1 Movement in Supply
8.2 Shift in Supply
Theory of Demand
1. Meaning
- In general sense demand signifies desire to have something by a person or by an individual.
- But in economics demand is effective desire backed by ability to pay and willingness to pay. This means to be a demand three components desire, ability to pay and willingness to pay must be fulfilled.
- In another words other things remaining the same, the total amount of goods and services purchased by consumer at various prices during the given period of time is known as demand.
2. Types of Demand
- Types of demand are as follows:
a. Price Demand
- Other things remaining the same, the total amount of goods and services demanded by consumer at various prices during the given period of time is known as the price demand. When amount of goods and services demanded by consumer is related with its price then it is called price demand.
b. Income Demand
c. Cross Demand
d. Derived Demand
f. Joint Demand
3. Determinants of Demand
Quantity demand for any commodity influenced by various factors. All those factors which influence the quantity demanded for any commodity is known as determinants of demand. There are various factors influencing quantity demanded for a commodity among them major determinants are as follows:
a) Price of Own Commodity
b) Income Level of Consumer
c) Price of Related Goods
d) Taste, Habit & Preferences of Consumer
e) Size of Composition of Population
f) Government Policy
g) Distribution of Income
h) Future Expectation Regarding Change in Price
i) Availability of Credit Facility
j) Advertisement
4. Concept of Demand Function
5. Law of Demand
6. Derivation of Individual Demand Curve
7. Derivation of Market Demand Curve
8. Movement & Shift in Demand
8.1 Movement in Demand
8.2 Shift in Demand
Theory of Supply
1. Meaning
2. Types of Supply
3. Determinants of Supply
4. Concept of Supply Function
5. Law of Supply
6. Derivation of Individual Supply Curve
7. Derivation of Market Supply Curve
8. Movement & Shift in Supply
8.1 Movement in Supply
8.2 Shift in Supply
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