CHANGES IN DEMAND Presented by- Sultan Ahmed
Description: CHANGES IN DEMAND Presented by- Sultan Ahmed DEMAND : The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price within a period of time. In economics, demand is the
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slide1. CHANGES IN DEMAND Presented by- Sultan Ahmed<br>
slide2. DEMAND : The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price within a period of time.
In economics, demand is the desire to own , the ability to pay for it, and the willingness to pay to buy a particular commodity at Price within a given point of time.<br>
slide3. The demand function is the mathematical expression of the functional relationship between the quantity of a good and those factors that affect the willingness and ability of a consumer to buy the good.
Demand function > Qd = f(Px, Y , Pr, t, p, w, g, Ad, wealth, etc) When these factor change the demand is also change.<br>
slide4. Due to changes in Price of the commodity
( Other factors remaining the same)
Extension of demand
Contraction of demand
Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Rise in demand – Upward shift in demand
Fall in demand – Downward shift in demand Change in Quantity Demand Change in Demand<br>
slide5. Due to changes in Price of the commodity -
( Other factors remaining the same)
Extension of demand An extension of demand is an Increase in the quantity demanded because the price has changed , other factor reaming the same.<br>
slide6. Quantity demanded Price of good 100 50 10 20 E1 E2 0 An extension of demand denote E1 to E2
is an increase in the quantity demanded because the price has changed , other factor reaming the same. E1 to E2 D D<br>
slide7. Due to changes in Price of the commodity ( Other factors remaining the same)
Extension of demand and
Contraction of demand An CONTRACTION of demand is an decrease in the quantity demanded because the price has changed , other factor reaming the same.<br>
slide8. An CONTRACTION of demand is an decrease in the quantity demanded because the price has changed , other factor reaming the same. Quantity demanded Price of good 100 50 10 20 E1 E2 0 D D<br>
slide9. Extension of demand Contraction of demand Are due to changes in Price of the commodity
The change taken place on the same demand curve – Movement along the demand curve.
Leads to changes on quantity demanded
Price and Quantity Demanded both change togather<br>
slide10. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Rise in demand – Upward shift in demand
Fall in demand – Downward shift in demand<br>
slide11. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same ) A shift in demand curve refers to the effect of in demand due to changes in a factor other than price.
Shift in demand taken place due to the changes in
Income of the consumer
Price of related goods
Advertisement
Government policy
Taste and preference
etc<br>
slide12. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Rise in demand – Upward shift in demand
Fall in demand – Downward shift in demand<br>
slide13. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Increasing demand – Upward shift in demand An increase in income of the consumer
High level of advertisement Quantity demanded Price of good 100 10 E1<br>
slide14. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Rise in demand – Upward shift in demand Quantity demanded Price of good 100 10 20 E1 E2 D D D’ D’<br>
slide15. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Increasing demand – Upward shift in demand
Fall in demand – Downward shift in demand<br>
slide16. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
b) Decreasing demand – downward shift in demand A fall in in income of the consumer
Low level of advertisement Quantity demanded Price of good 100 10 E1<br>
slide17. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
b) Fall in demand – downward shift in demand Quantity demanded Price of good 100 10 5 E1 E2 D D D’ D’<br>
slide18. Rise of demand Fall of demand Are not due to changes in Price of the commodity but due to change in Other Factors
The change taken place on the other demand curve – Movement away the demand curve.
Leads to changes on demand
Either Price or Demand change alone.<br>
slide19. Quantity demanded Price of good 100 10 E2 E1 150<br>
slide20. THANK YOU<br>
slide2. DEMAND : The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price within a period of time.
In economics, demand is the desire to own , the ability to pay for it, and the willingness to pay to buy a particular commodity at Price within a given point of time.<br>
slide3. The demand function is the mathematical expression of the functional relationship between the quantity of a good and those factors that affect the willingness and ability of a consumer to buy the good.
Demand function > Qd = f(Px, Y , Pr, t, p, w, g, Ad, wealth, etc) When these factor change the demand is also change.<br>
slide4. Due to changes in Price of the commodity
( Other factors remaining the same)
Extension of demand
Contraction of demand
Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Rise in demand – Upward shift in demand
Fall in demand – Downward shift in demand Change in Quantity Demand Change in Demand<br>
slide5. Due to changes in Price of the commodity -
( Other factors remaining the same)
Extension of demand An extension of demand is an Increase in the quantity demanded because the price has changed , other factor reaming the same.<br>
slide6. Quantity demanded Price of good 100 50 10 20 E1 E2 0 An extension of demand denote E1 to E2
is an increase in the quantity demanded because the price has changed , other factor reaming the same. E1 to E2 D D<br>
slide7. Due to changes in Price of the commodity ( Other factors remaining the same)
Extension of demand and
Contraction of demand An CONTRACTION of demand is an decrease in the quantity demanded because the price has changed , other factor reaming the same.<br>
slide8. An CONTRACTION of demand is an decrease in the quantity demanded because the price has changed , other factor reaming the same. Quantity demanded Price of good 100 50 10 20 E1 E2 0 D D<br>
slide9. Extension of demand Contraction of demand Are due to changes in Price of the commodity
The change taken place on the same demand curve – Movement along the demand curve.
Leads to changes on quantity demanded
Price and Quantity Demanded both change togather<br>
slide10. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Rise in demand – Upward shift in demand
Fall in demand – Downward shift in demand<br>
slide11. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same ) A shift in demand curve refers to the effect of in demand due to changes in a factor other than price.
Shift in demand taken place due to the changes in
Income of the consumer
Price of related goods
Advertisement
Government policy
Taste and preference
etc<br>
slide12. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Rise in demand – Upward shift in demand
Fall in demand – Downward shift in demand<br>
slide13. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Increasing demand – Upward shift in demand An increase in income of the consumer
High level of advertisement Quantity demanded Price of good 100 10 E1<br>
slide14. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Rise in demand – Upward shift in demand Quantity demanded Price of good 100 10 20 E1 E2 D D D’ D’<br>
slide15. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
Increasing demand – Upward shift in demand
Fall in demand – Downward shift in demand<br>
slide16. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
b) Decreasing demand – downward shift in demand A fall in in income of the consumer
Low level of advertisement Quantity demanded Price of good 100 10 E1<br>
slide17. Due to changes in other than Price – Shift in demand
( Price of the commodity remaining the same )
b) Fall in demand – downward shift in demand Quantity demanded Price of good 100 10 5 E1 E2 D D D’ D’<br>
slide18. Rise of demand Fall of demand Are not due to changes in Price of the commodity but due to change in Other Factors
The change taken place on the other demand curve – Movement away the demand curve.
Leads to changes on demand
Either Price or Demand change alone.<br>
slide19. Quantity demanded Price of good 100 10 E2 E1 150<br>
slide20. THANK YOU<br>