ECONOMICS FOR MANAGERS
UNIT- 2
DEMAND AND SUPPLY
Demand Function-Law of Demand-
Demand Shift-Elasticity of Demand-
Demand Forecasting-Supply Function-Law
of Supply-Supply Shift-Equilibrium Price
Determination.
Course Code: 23P3BA05
Present By: Dr. S. Krishnakumar
, Demand Analysis
• Meaning of Demand
• In economics, demand for a commodity refers to
the desire backed by the necessary purchasing
power. Further, person should have the willingness
to purchase the commodity. Demand for a
commodity arises from
a. Desire for the commodity,
b. Ability to pay the price for the commodity and
c. Willingness to pay the price
,• Demand is defined as “a desire for a commodity backed
by willingness and ability to pay a price”. The demand
should be expressed in terms of quantity at a particular
price. The demand changes with time say, a day, week,
month or year depending upon the nature of the
commodity.
• Demand is the various quantities of a given commodity
or services which consumers would buy in one market in
a given period of time at various prices, or at various
incomes, or at various prices of related goods.
, Demand
i. It is not mere desire, but desire with the capacity and
willingness to purchase.
ii. Demand is always related to price. The quantity
demanded should be expressed only in terms of the
price of that commodity.
iii. Demand should be referred to per unit of time.
iv. Demand varies for a commodity with variations in
income.
v. Demand for a commodity varies with variations of
prices of related goods.
UNIT- 2
DEMAND AND SUPPLY
Demand Function-Law of Demand-
Demand Shift-Elasticity of Demand-
Demand Forecasting-Supply Function-Law
of Supply-Supply Shift-Equilibrium Price
Determination.
Course Code: 23P3BA05
Present By: Dr. S. Krishnakumar
, Demand Analysis
• Meaning of Demand
• In economics, demand for a commodity refers to
the desire backed by the necessary purchasing
power. Further, person should have the willingness
to purchase the commodity. Demand for a
commodity arises from
a. Desire for the commodity,
b. Ability to pay the price for the commodity and
c. Willingness to pay the price
,• Demand is defined as “a desire for a commodity backed
by willingness and ability to pay a price”. The demand
should be expressed in terms of quantity at a particular
price. The demand changes with time say, a day, week,
month or year depending upon the nature of the
commodity.
• Demand is the various quantities of a given commodity
or services which consumers would buy in one market in
a given period of time at various prices, or at various
incomes, or at various prices of related goods.
, Demand
i. It is not mere desire, but desire with the capacity and
willingness to purchase.
ii. Demand is always related to price. The quantity
demanded should be expressed only in terms of the
price of that commodity.
iii. Demand should be referred to per unit of time.
iv. Demand varies for a commodity with variations in
income.
v. Demand for a commodity varies with variations of
prices of related goods.
